Does a Cd One Price Cleaners franchisee have a right to renew or extend the Sublease term?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| b. Renewal or extension | Not applicable | You have no right to renew or extend. |
| of the term | ||
| c. Requirements for | Not applicable | Not applicable. |
| franchisee to renew or | ||
| extend |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–62)
What This Means (2025 FDD)
According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, a franchisee does not have the right to renew or extend the Sublease term. The Sublease term ends when the prime lease or the Franchise Agreement expires or terminates, whichever occurs sooner.
This means that upon the expiration or termination of either the prime lease (the lease between the franchisor's affiliate and the landlord) or the Franchise Agreement, the franchisee's right to occupy the premises ends. The franchisee cannot unilaterally extend the Sublease beyond the initial term defined by these agreements.
This lack of renewal option is a significant point for prospective franchisees to consider. It is essential to understand the terms and expiration dates of both the Franchise Agreement and the prime lease, as these dictate the duration of the Sublease. A franchisee should carefully evaluate the potential risks associated with the Sublease term and consider negotiating favorable terms, if possible, prior to signing the agreement.