What duty does Cd One Price Cleaners have when assuming management of a store?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
All funds from the Store's operation during the period of Franchisor's (or its designee's) management shall be kept in a separate account and all Store expenses shall be charged to such account.
In addition to other fees and payments owed hereunder, Franchisor may charge Franchisee a reasonable management fee specified by Franchisor, not to exceed eight percent (8%) of the Store's Gross Revenues, plus any out-of-pocket expenses incurred in connection with the Store's management (including, without limitation, payroll, benefits and other expenses associated with any managers).
Franchisor or its designee shall have a duty only to use reasonable efforts upon assuming the Store's management and will not be liable to Franchisee for any debts, losses or obligations that the Store incurs, or to any creditors for any supplies or other products or services purchased for the Store, in connection with such management.
Franchisee shall not interfere in the Store's management or operations while Franchisor or its designee is managing the Store pursuant to this Section 13.5.
Franchisor or its designee may assume the Store's management under any of the following circumstances: (1) if Franchisee abandons or fails actively to operate the Store for any period; (2) if Franchisee fails to comply with any provision of this Agreement (including, without limitation, any Operating Plan) and does not correct the failure within the time period Franchisor specifies in its notice to Franchisee (which might be less than the cure period
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 FDD, when Cd One Price Cleaners assumes management of a store, it has a duty only to use reasonable efforts. Cd One Price Cleaners will not be liable to the franchisee for any debts, losses, or obligations that the store incurs, or to any creditors for any supplies or other products or services purchased for the store, in connection with such management.
During the period that Cd One Price Cleaners (or its designee) manages the store, all funds from the store's operation will be kept in a separate account, and all store expenses will be charged to that account. Cd One Price Cleaners may charge the franchisee a reasonable management fee, not to exceed 8% of the store's Gross Revenues, plus any out-of-pocket expenses incurred in connection with the store's management, including payroll, benefits, and other expenses associated with any managers.
The franchisee is not allowed to interfere in the store's management or operations while Cd One Price Cleaners or its designee is managing the store. Cd One Price Cleaners or its designee may assume the store's management if the franchisee abandons or fails to actively operate the store, fails to comply with any provision of the Agreement and does not correct the failure within the time period Cd One Price Cleaners specifies in its notice to the franchisee, or if the Agreement expires or is terminated and Cd One Price Cleaners is deciding whether to assume the Lease.