What is the franchisee's obligation regarding payment of debts to Cd One Price Cleaners and its affiliates?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
ed agents may enter the Store and adjacent areas, without prior notice, to make such modifications, alterations and/or removals, at Franchisee's expense, without liability for trespass or damages. Franchisee expressly acknowledges that its failure to make such alterations will cause irreparable injury to Franchisor and consents to entry, at Franchisee's expense, of an ex-parte order by any court of competent jurisdiction authorizing Franchisor or its agents to take such action, if Franchisor seeks such an order.
- 14.6 Franchisee Payment of Debts. Franchisee shall promptly pay all sums owing to Franchisor and its affiliates. In the event of termination for any default of Franchisee, such sums shall include (without limitation) all damages, costs and expenses, including reasonable attorneys' fees and costs, incurred by Franchisor as a result of the default, which obligation shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the Operating Assets, supplies and other personal property owned by Franchisee at the time of default.
- 14.7 Payment of Franchisor's Cost in Securing Franchisee's Compliance with Post-Termination Obligations.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees are required to promptly pay all sums owed to Cd One Price Cleaners and its affiliates. This obligation extends to any damages, costs, and expenses, including reasonable attorneys' fees and costs, incurred by Cd One Price Cleaners as a result of any default by the franchisee.
Furthermore, these unpaid sums will create a lien in favor of Cd One Price Cleaners against all of the franchisee's operating assets, supplies, and other personal property owned at the time of the default. This lien remains in effect until all outstanding debts are paid in full.
In the event of termination, the franchisee is also responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees and costs, incurred by Cd One Price Cleaners to enforce the franchisee's post-termination obligations. Additionally, the franchisee must provide Cd One Price Cleaners with a list of all past and current store suppliers, including any amounts owed to them.