What is the definition of 'abandonment' of a Cd One Price Cleaners store that would trigger 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
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners FDD, abandonment of the premises can be grounds for termination of the Sublease agreement.
The FDD states that a Cd One Price Cleaners subtenant is considered to have abandoned the premises under two specific conditions. First, if the subtenant fails to keep the store open and operating for business for a period of three consecutive days during the sublease term, it will be deemed abandonment. Second, abandonment is determined if the subtenant fails to keep the store open and operating for any period after which it is not unreasonable to conclude that the subtenant does not intend to continue to operate the store.
However, the FDD also provides an exception: the failure to operate will not be considered abandonment if it is due to fire, flood, earthquake, or other similar events. This clause protects the franchisee from being penalized for temporary closures caused by unforeseen and uncontrollable circumstances.