Is other economic or financial restructuring by Cd One Price Cleaners allowed?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) be acquired (in whole or in part and regardless of the form of transaction) by a business providing products and services similar or dissimilar to those provided at CD Stores, or by another business, even if such business operates, franchises and/or licenses one or more competitive businesses within the Protected Territory or ROFO Territory; and
(d) acquire (in whole or in part and regardless of the form of transaction) one or more businesses providing products and services similar or dissimilar to those provided at CD Stores, and franchise, license and create other arrangements of any type with respect to those businesses once acquired, wherever these businesses (or the franchisees or licensees of those businesses) are located or operating (whether within or outside the Protected Territory or ROFO Territory).
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, Cd One Price Cleaners retains broad rights regarding its business operations. Specifically, Cd One Price Cleaners has the right to be acquired by another business, even one that offers similar or competitive services, regardless of whether that business operates within the franchisee's protected territory. This includes acquisitions in whole or in part, irrespective of the transaction's structure.
Furthermore, Cd One Price Cleaners is also permitted to acquire other businesses that provide similar or dissimilar products and services. Following such an acquisition, Cd One Price Cleaners can franchise, license, or create other arrangements with these acquired businesses, irrespective of their location or operational area, and whether they are within or outside a franchisee’s protected territory.
These stipulations grant Cd One Price Cleaners significant latitude in restructuring its business, which could introduce new competitive elements or alter the support and resources available to franchisees. Prospective franchisees should consider these possibilities and evaluate how such changes might affect their investment and operational strategies. It is important to note that these rights are subject to other sections of the franchise agreement, which may provide some limitations or protections for the franchisee.