What is the dependency for Cd One Price Cleaners to offer a ROFO territory to a franchisee?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described below, at any time during the Franchise Agreement's term (assuming you are then in full compliance with the Franchise Agreement and all other agreements between us (or our affiliate) and you), if we desire to grant to any person or entity the right to develop and operate a CD Store at a location the physical premises of which are located within the ROFO Territory (the "Proposed Site"), and further subject to any restrictions under applicable law, we will first offer you the opportunity to acquire the right to develop and operate a CD Store at the Proposed Site by delivering written notice to you. You will then have 30 days after receiving our notice to notify us in writing whether you elect to exercise your right of first offer. Together with your notice, you must complete and send us the forms and other information we then require demonstrating your financial and operational ability to develop and operate the CD Store at the Proposed Site. If you meet our then current qualifications, we will, subject to any restrictions under applicable law, deliver to you within a reasonable time after receiving your notice the form of franchise or license agreement and related documents (including personal guarantees) that we then are using to grant rights to develop and operate CD Stores, the terms of which (including fees payable to us) might be materially different from those contained in the Franchise Agreement.
If:
- (1) you and your owners fail to sign and deliver to us that franchise or license agreement and related documents, or to pay the fees owed to us upon your signing those documents, within 30 days after we deliver them to you;
- (2) you inform us that you decide not to exercise your right of first offer or you fail to notify us of your decision to exercise those rights within the 30-day period described above; or
(3) you are not eligible to exercise your right of first offer described above because you are not then in full compliance with the Franchise Agreement and all other agreements between us (or our affiliate) and you, or do not meet our then current qualifications for CD Store franchisees;
then we will notify you in writing of your ineligibility for the right of first offer at the Proposed Site. After that, at any time and without obligation to you, we may operate, or grant a franchise for the operation of, a CD Store at the Proposed Site on any terms and conditions we deem appropriate.
Source: Item 12 — Territory (FDD pages 47–52)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the ability for a franchisee to be offered the right of first offer (ROFO) territory depends on their compliance with the Franchise Agreement and other related agreements. Specifically, if Cd One Price Cleaners desires to grant someone the right to develop and operate a store within the ROFO territory, they must first offer this opportunity to the existing franchisee, provided the franchisee is in full compliance with all agreements. This offer is subject to any restrictions under applicable law.
The franchisee has 30 days to respond in writing regarding their decision to exercise their right of first offer. Along with their notice, they must provide all required forms and information to demonstrate their financial and operational ability to manage the new location. If the franchisee meets Cd One Price Cleaners' current qualifications, they will receive the franchise or license agreement, which may have terms and fees that differ from the original agreement.
However, the franchisee becomes ineligible for the right of first offer if they are not in full compliance with all agreements, fail to meet the current qualifications for franchisees, or do not respond within the 30-day period. In such cases, Cd One Price Cleaners will notify the franchisee of their ineligibility and may then proceed to operate or franchise a store at the proposed site without any obligation to the existing franchisee.