After the Cd One Price Cleaners franchise is terminated or expires, what is the duration of the non-competition covenant?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| r. Non-competition | 15.3 of Franchise Agreement | For 2 years, no owning interest in, performing |
| covenants after | services for, or otherwise associating with | |
| the franchise is | Competitive Business operating at Site, within 10 | |
| terminated or | miles of Site, or within 5 miles of any other CD | |
| expires | Store. |
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, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant for a period of 2 years. This restriction prevents the franchisee from owning, performing services for, or associating with a Competitive Business.
A Competitive Business is defined as one that offers dry cleaning, finished laundry services, other cleaning services, alterations, repair/restoration and similar services, including providing these services to another CD Store.
During the 2-year period, the non-compete applies to any Competitive Business operating at the franchise location (Site), within a 10-mile radius of the Site, or within 5 miles of any other Cd One Price Cleaners store. This means a former franchisee cannot engage in a competing business within these specified geographic areas. This restriction is designed to protect Cd One Price Cleaners' market share and brand reputation after a franchise agreement ends.