What constitutes abandonment of a Cd One Price Cleaners store that would lead to termination?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
The following shall also constitute an "event of default" hereunder: (i) Subtenant abandons (as hereinafter described) the Premises, (ii) Subtenant breaches any other agreement between Subtenant and Sublandlord or any of its affiliates, including, without limitation, the Franchise Agreement, and Subtenant fails to cure such breach in the manner and within the time periods prescribed by such agreement, and (iii) Subtenant commits any other act or omission to act which gives the Franchisor the right to terminate the Franchise Agreement.
Subtenant shall be deemed to have abandoned the Premises upon (a) Subtenant's failure, at any time during the Sublease Term, to keep the Store open and operating for business for a period of three (3) consecutive days, (b) Subtenant's failure to keep the Store open and operating for any period after which it is not unreasonable under the facts and circumstances for Sublandlord to conclude that Subtenant does not intend to continue to operate the Store, unless such failure to operate is due to fire, flood, earthquake or other similar causes beyond Subtenant's control, (c) Subtenant's failure to actively and continuously maintain and answer Subtenant's telephone, or (d) any event or circumstance constituting "abandonment" under the terms of the Prime Lease.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners FDD, a subtenant is considered to have abandoned the premises under certain conditions, which can lead to termination of the franchise agreement. These conditions include failing to keep the store open and operating for business for three consecutive days.
Abandonment is also determined if the subtenant fails to keep the store open for any period after which the sublandlord could reasonably conclude that the subtenant does not intend to continue operating the store. An exception is made if the failure to operate is due to events beyond the subtenant's control, such as fire, flood, or earthquake.
Further, abandonment includes failing to actively and continuously maintain and answer the store's telephone. Finally, any event or circumstance that constitutes "abandonment" under the terms of the prime lease will also be considered abandonment under the franchise agreement. These conditions are important for a prospective franchisee to understand, as they define the circumstances under which the franchisor may consider the store abandoned, leading to potential termination of the franchise agreement.