factual

What is the Cd One Price Cleaners franchisee required to do to the site after lease assignment?

Cd_One_Price_Cleaners Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisor does not assume the Lease pursuant to Section 14.4, at Franchisee's expense, Franchisee shall immediately make such modifications and alterations, including (without limitation) removal of all distinctive physical and structural features associated with Franchisor's proprietary trade dress or otherwise relating to CD Stores, as may be necessary to distinguish the Site and the Store so clearly from its former appearance and from other CD Stores as to prevent any possibility that the public will associate the Site with CD Stores and to prevent confusion created by such association.

At a minimum, such changes and modifications to the Store will include, without limitation: (a) repainting, and, where applicable, recovering both the exterior and interior of the Store with different colors, including removing distinctive colors and designs from the walls; (b) removing all trade dress, fixtures and other decor items and replacing them with other items not of the general type and appearance customarily used in a CD Store; and (c) removing all exterior and interior signage bearing any Proprietary Mark.

Source: Item 23 — Receipts (FDD pages 72–263)

What This Means (2025 FDD)

According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, if Cd One Price Cleaners does not assume the lease, the franchisee is responsible for modifying the store to avoid public confusion, at the franchisee's expense. These modifications include removing all distinctive physical and structural features associated with Cd One Price Cleaners' proprietary trade dress. The goal is to clearly differentiate the site from its former appearance and from other Cd One Price Cleaners locations.

At a minimum, the franchisee must repaint or recover both the exterior and interior of the store with different colors, removing distinctive colors and designs from the walls. They must also remove all trade dress, fixtures, and other decor items, replacing them with items not typically used in a Cd One Price Cleaners store. Additionally, all exterior and interior signage bearing any Proprietary Mark must be removed.

This requirement ensures that the public will not associate the site with Cd One Price Cleaners after the franchise agreement ends, preventing confusion. It is a standard practice in franchising to protect the brand's image and prevent unauthorized use of trademarks and trade dress after a franchise agreement terminates. Franchisees should factor in these potential costs when considering the financial implications of exiting the Cd One Price Cleaners system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.