What is the Cd One Price Cleaners franchisor's recourse if the franchisee is dissolved?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
is located or operating (a) at the Site, (b) within a ten (10) mile radius of the Site, or (c) within a five (5) mile radius of any CD Store then operating or under construction; and
- 13.6.5 Franchisee prepays rent at the Site and takes all other steps to ensure that no Competitive Business is operated at the Site for a continuous period of at least three (3) months following the date upon which the Store is closed and completely deidentified pursuant to Sections 14.2 and 14.5 below.
14. OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon termination or expiration of this Agreement, all rights granted hereunder to Franchisee shall immediately terminate. In addition to any other remedies available to Franchisor and its affiliates under this Agreement, any other agreement and applicable law, upon expiration or termination of this Agreement:
- 14.1 Cessation of Store Operations. Franchisee shall immediately cease to operate the Store as a CD Store, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor (except in connection with other CD Stores that Franchisee operates).
- 14.2 Cessation of Use of Confidential Information and Proprietary Marks. Franchisee shall immediately and permanently cease to use, in any manner whatsoever, (a) any products or services which incorporate trade secrets or any confidential methods, procedures or techniques associated with Franchisor; and (b) the Proprietary Marks, any trademark, service mark, trade name or symbol that is confusingly similar to any Proprietary Mark, and all other proprietary marks and distinctive forms, slogans, signs, symbols, and devices associated with Franchisor and/or CD Stores.
- 14.3 Assumed Name Registration and Telephone Numbers. Franchisee shall immediately take such action as may be necessary to cancel any assumed name or equivalent registration which contains any of the Proprietary Marks. Franchisee also shall immediately notify the telephone company and all telephone directory publishers of the termination or expiration of this Agreement and Franchisee's right to use any telephone, telecopy and other numbers and directory listings associated with any Proprietary Mark or the Store, authorize the
transfer of these numbers and listings to Franchisor or its designee, and/or instruct the telephone company to forward all calls made to such numbers to those numbers that Franchisor specifies. Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with these obligations within thirty (30) days after termination or expiration hereof. If Franchisee fails or refuses to do so, Franchisor may, in Franchisee's name, on Franchisee's behalf, and at Franchisee's expense, execute any and all necessary documents, and Franchisor is hereby irrevocably appointed by Franchisee as Franchisee's attorney-in-fact to effectuate the foregoing obligation.
- 14.4 Assignment of Lease. Franchisee shall, at Franchisor's request delivered at any time within thirty (30) days after this Agreement terminates or expires, immediately assign to Franchisor, effective on the date specified by Franchisor, any interest which Franchisee has in the Lease and thereafter vacate the Site, rendering all necessary assistance to Franchisor to enable it to take prompt possession thereof.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 FDD, upon the termination or expiration of the Franchise Agreement with Cd One Price Cleaners, all rights granted to the franchisee immediately terminate. The franchisor has several avenues of recourse to ensure the franchisee ceases operation in a manner that protects the Cd One Price Cleaners brand and system.
First, the franchisee must immediately stop operating the store as a Cd One Price Cleaners location and cannot represent themselves as a current or former franchisee, except when referencing other Cd One Price Cleaners locations they might operate. The franchisee must also cease using any confidential information, trade secrets, or proprietary marks associated with Cd One Price Cleaners. This includes trademarks, service marks, trade names, symbols, and distinctive forms or slogans.
Additionally, the franchisee is required to cancel any assumed name registrations that include Cd One Price Cleaners' proprietary marks and notify the phone company and directory publishers about the termination of the agreement, relinquishing rights to associated phone numbers and listings. The franchisor can also request the franchisee to transfer phone numbers and listings to the franchisor or forward calls to a number the franchisor specifies. The franchisee must provide evidence of compliance within 30 days of termination or expiration; otherwise, the franchisor is irrevocably appointed as the franchisee's attorney-in-fact to execute necessary documents at the franchisee's expense. Cd One Price Cleaners can request the franchisee to deliver all signs, unused products, and advertising materials containing trade secrets or proprietary marks. The franchisor also has the option to purchase the store's assets at fair market value, excluding any value associated with the franchise rights or goodwill.