What does exclusivity in the Protected Territory mean for a Cd One Price Cleaners franchisee?

According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, the Protected Territory offers a degree of exclusivity to the franchisee. The size of the Protected Territory 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. If not in an urban environment, the Protected Territory is a 1-mile radius around the store. This determination is made by Cd One Price Cleaners and will be listed in the Franchise Agreement.

This exclusivity means that, provided the franchisee is not in default under the Franchise Agreement, Cd One Price Cleaners will not operate or franchise another Cd One Price Cleaners store within the Protected Territory. Furthermore, Cd One Price Cleaners will not operate or franchise another store within the ROFO (Right of First Offer) Territory without first offering the franchisee the opportunity to open a store there. The ROFO Territory extends beyond the Protected Territory, offering an additional layer of potential expansion for the franchisee.

However, Cd One Price Cleaners retains certain rights within both the Protected Territory and the ROFO Territory. Cd One Price Cleaners can still market and sell goods and services, similar or dissimilar to those offered at Cd One Price Cleaners stores, through various distribution channels, including online sales, delivery services, and kiosks, regardless of the franchisee's territory. They can also be acquired by or acquire other businesses, even those that compete with Cd One Price Cleaners, within the Protected Territory or ROFO Territory. This means that while the franchisee has some territorial protection against other franchised locations, Cd One Price Cleaners can still engage in activities that might impact the franchisee's business.