What is the 'Commencement Date' that affects the sublease term for a Cd One Price Cleaners franchise?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Term. The term of this Sublease (the "Sublease Term") shall commence on the date hereof (the "Commencement Date") and shall end, unless sooner terminated, on the earlier of: (a) the date preceding the expiration or earlier termination of the Prime Lease or termination of Sublandlord's right to possession of the Premises, or (b) the date that the Franchise Agreement
terminates or expires (the "Sublease Termination Date"). Sublandlord shall deliver possession of the Premises to Subtenant on the Commencement Date in its existing "as is" condition and
Subtenant shall be responsible for all costs and work necessary to make the Premises ready for Subtenant's occupancy.
- Rent.
(a) Commencing on the Commencement Date and thereafter during the Sublease Term, Subtenant shall pay to Sublandlord in advance monthly base, fixed or minimum rent ("Sublease Base Rent") for the Premises in the amount equal to (i) the amount of base rent required to be paid by Sublandlord pursuant to the Prime Lease, plus (ii) at Sublandlord's option, a lease administration fee of up to Five Hundred Dollars ($500) per month.
Each installment of Sublease Base Rent for any full or partial calendar month during the Sublease Term occurring after the calendar month in which the Commencement Date occurs shall be due and payable by Subtenant on or before the last Friday of the previous calendar month.
If the Commencement Date occurs on a day other than the first day of a month, and/or the Sublease Term ends on a day other than the last day of a month, Sublease Base Rent and Additional Rent (defined below) for the first and last months of the Sublease Term shall be prorated.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners FDD, the "Commencement Date" marks the beginning of the sublease term. The sublease term starts on the Commencement Date and ends on the earlier of either the expiration or termination of the prime lease, the termination of the sublandlord's right to possess the premises, or the date the Franchise Agreement terminates or expires.
The franchisee's obligation to pay rent to the sublandlord begins on the Commencement Date and continues throughout the sublease term. The franchisee pays a monthly base rent, which includes the base rent the sublandlord pays under the prime lease, plus an optional lease administration fee of up to $500 per month. Rent is paid in advance, with each installment due by the last Friday of the previous calendar month for any full or partial month after the month in which the Commencement Date occurs.
If the Commencement Date falls on a day other than the first day of a month, the sublease base rent and any additional rent are prorated for the first and last months of the sublease term. This ensures that the franchisee only pays for the portion of the month they occupy the premises. Understanding the Commencement Date is crucial for Cd One Price Cleaners franchisees as it dictates when their financial obligations for rent begin and how the sublease term aligns with the franchise agreement.