Against what assets does Cd One Price Cleaners have a lien in the event of the franchisee's default?

According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, if a franchisee defaults, Cd One Price Cleaners has a lien against specific assets. This lien covers any and all of the Operating Assets, supplies, and other personal property owned by the franchisee at the time of the default. This provision ensures that Cd One Price Cleaners has a secured interest in the franchisee's business assets to cover any outstanding debts or costs incurred by Cd One Price Cleaners due to the franchisee's default.

This is a significant point for prospective franchisees to consider. The lien gives Cd One Price Cleaners a legal claim on the franchisee's business assets, which could be seized and sold to cover the franchisee's debts to Cd One Price Cleaners. The sums include all damages, costs, and expenses, including reasonable attorneys' fees and costs, incurred by Cd One Price Cleaners as a result of the default.

This type of security interest is relatively common in franchising to protect the franchisor's financial interests. Franchisees should fully understand the implications of this lien and how it could affect their business and personal assets in the event of a default. It is advisable to seek legal counsel to review the franchise agreement and understand the full extent of the obligations and potential liabilities.