Where must disputes between Cd One Price Cleaners and the franchisee be arbitrated?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | or other agreement | Summary | |
|---|---|---|---|
| p. | Death or disability of franchisee | 12.5 of Franchise Agreement | Must transfer to approved transferee within 6 months. |
| q. | Non-competition covenants during the term of the franchise | 15.2 of Franchise Agreement | No diverting Store business or customer to, owning interest in, performing services for, or otherwise associating with Competitive Business anywhere, and no performing acts prejudicial to goodwill. "Competitive Business" means business that offers dry cleaning, finished laundry services, other cleaning services, alterations, repair/restoration and similar services, including providing these services to another CD Store. |
| r. | Non-competition covenants after the franchise is terminated or expires | 15.3 of Franchise Agreement | For 2 years, no owning interest in, performing services for, or otherwise associating with Competitive Business operating at Site, within 10 miles of Site, or within 5 miles of any other CD Store. |
| s. | Modification of the agreement | 21 of Franchise Agreement, 8 of PUD Addendum and 13 of Development Rights Agreement | Modifications only by written agreement of parties, but we may change Manual and Operating Plans and the methods of calculating and paying the Customer Acquisition Payments and/or Technology Fee under the PUD Addendum. |
| t. | Integration/ merger clause | 21 of Franchise Agreement and 13 of Development Rights Agreement | Only terms of Development Rights Agreement or Franchise Agreement (including the Manual and Operating Plans) are binding (subject to state law). Any other representations or promises made outside of the disclosure document and those agreements may not be enforceable. |
| u. | Dispute resolution | 23.2 of Franchise Agreement | We and you must arbitrate all disputes at a |
| by arbitration or | and 13 of Development | location the arbitrator chooses within 10 miles of | |
| mediation | Rights Agreement | our then existing principal business address. |
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, disputes between the company and a franchisee must be arbitrated at a location chosen by the arbitrator. This location must be within 10 miles of Cd One Price Cleaners' principal business address at the time of the arbitration.
This means that a franchisee may be required to travel to the location determined by the arbitrator, which will be near Cd One Price Cleaners' headquarters, to resolve any disputes. This could potentially create a logistical or financial burden for franchisees who live further away from the company's principal business address.
It is important to note that this arbitration clause is subject to the Federal Arbitration Act and other federal laws, as well as applicable state laws. Franchisees should consult with a legal professional to understand their rights and obligations regarding dispute resolution with Cd One Price Cleaners.