What is the definition of 'Site' in the Cd One Price Cleaners Franchise Agreement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
ices customers. (PUD Addendum – Section 3)
Item 12
TERRITORY
Franchise Agreement
The Franchise Agreement grants you the right to operate the Store only at the "Site" identified in the Franchise Agreement. You may not relocate the Store without our prior written approval. We may condition that approval upon your paying the relocation fee and fulfilling our
then current requirements for the Store's appearance and required furniture, fixtures and equipment at the new location, among other things.
You have certain territorial rights in 2 specified geographic areas that we define in the Franchise Agreement as the "Protected Territory" and the "ROFO Territory." If we determine that the Site is in an urban environment, then the Protected Territory is a ½-mile radius around the Store and the ROFO Territory is a 1-mile radius around the Store (excluding the Protected Territory). If we determine that the Site is not in an urban environment, then the Protected Territory is a 1-mile radius around the Store and the ROFO Territory is a 2-mile radius around the Store (excluding the Protected Territory). Our determination is final, and we and you will list the Protected Territory and ROFO Territory in the Franchise Agreement before signing it.
The Protected Territory is an exclusive territory under the Franchise Agreement. This "exclusivity" in the Protected Territory means that if you are not in default under the Franchise Agreement: (a) we will not operate, or grant a franchise to any other person to operate, a CD Store the physical premises of which are located within the Protected Territory; and (b) we will not operate, or grant a franchise to any other person to operate, a CD Store the physical premises of which are located within the ROFO Territory unless we comply with the provisions described below concerning your right of first offer.
Source: Item 12 — Territory (FDD pages 47–52)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the Franchise Agreement grants the franchisee the right to operate their store only at the "Site" identified in the Franchise Agreement. The franchisee is not allowed to relocate the store without prior written approval from Cd One Price Cleaners. This approval may be conditional and require the franchisee to pay a relocation fee and meet the current requirements for the store's appearance, furniture, fixtures, and equipment at the new location.
Cd One Price Cleaners also defines two specified geographic areas in the Franchise Agreement: the "Protected Territory" and the "ROFO Territory." The size of these territories depends on whether the Site is in an urban environment. If the Site is in an urban environment, the Protected Territory is a ½-mile radius around the Store, and the ROFO Territory is a 1-mile radius around the Store (excluding the Protected Territory). If the Site is not in an urban environment, the Protected Territory is a 1-mile radius around the Store, and the ROFO Territory is a 2-mile radius around the Store (excluding the Protected Territory). Cd One Price Cleaners' determination of whether the Site is in an urban environment is final, and the Protected Territory and ROFO Territory will be listed in the Franchise Agreement before signing.
The Protected Territory provides the franchisee with an exclusive territory, meaning that Cd One Price Cleaners will not operate or franchise another CD Store within that area, nor will they operate or franchise a CD Store within the ROFO Territory without first offering the franchisee the right of first offer, assuming the franchisee is not in default under the Franchise Agreement. This right of first offer allows the franchisee to potentially expand their operations by opening additional locations within the ROFO Territory before Cd One Price Cleaners offers the opportunity to others.