What constitutes a non-curable default under the Cd One Price Cleaners sublease agreement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| h. “Cause” defined – non-curable defaults | 6 of Sublease | Non-curable default under prime lease, abandonment, and material breach of Franchise Agreement or other agreement. Our affiliate may cure your defaults. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–62)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, a non-curable default under the sublease agreement includes a non-curable default under the prime lease, abandonment of the premises, and a material breach of the Franchise Agreement or any other agreement. It is important to note that even in the event of a non-curable default, Cd One Price Cleaners' affiliate has the right to cure these defaults.
This means that if the franchisee violates a term in the prime lease that cannot be fixed, such as using the property for an illegal purpose, or if the franchisee abandons the Cd One Price Cleaners location, or if the franchisee seriously violates the Franchise Agreement, Cd One Price Cleaners has grounds to terminate the sublease.
However, Cd One Price Cleaners retains the option to correct the franchisee's defaults. This could involve actions such as paying outstanding rent or fixing damages to the property. This clause protects Cd One Price Cleaners' interests in maintaining the sublease and ensuring the continued operation of the franchise location. Prospective franchisees should carefully review the terms of the prime lease and Franchise Agreement to fully understand what actions could lead to a non-curable default and potential termination of the sublease.