What is the geographic scope of the 'ROFO Territory' for a Cd One Price Cleaners franchise?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
You have certain territorial rights in 2 specified geographic areas that we define in the Franchise Agreement as the "Protected Territory" and the "ROFO Territory." If we determine that the Site is in an urban environment, then the Protected Territory is a ½-mile radius around the Store and the ROFO Territory is a 1-mile radius around the Store (excluding the Protected Territory). If we determine that the Site is not in an urban environment, then the Protected Territory is a 1-mile radius around the Store and the ROFO Territory is a 2-mile radius around the Store (excluding the Protected Territory). Our determination is final, and we and you will list the Protected Territory and ROFO Territory in the Franchise Agreement before signing it.
The Protected Territory is an exclusive territory under the Franchise Agreement. This "exclusivity" in the Protected Territory means that if you are not in default under the Franchise Agreement: (a) we will not operate, or grant a franchise to any other person to operate, a CD Store the physical premises of which are located within the Protected Territory; and (b) we will not operate, or grant a franchise to any other person to operate, a CD Store the physical premises of which are located within the ROFO Territory unless we comply with the provisions described below concerning your right of first offer.
Source: Item 12 — Territory (FDD pages 47–52)
What This Means (2025 FDD)
According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, the ROFO (Right of First Offer) Territory's geographic scope depends on whether the site is in an urban environment. If Cd One Price Cleaners determines the site is in an urban environment, the ROFO Territory is a 1-mile radius around the store, excluding the Protected Territory. If the site is not in an urban environment, the ROFO Territory expands to a 2-mile radius around the store, again excluding the Protected Territory. Cd One Price Cleaners makes the final determination on whether the site is urban or not.
The ROFO Territory provides the franchisee with a right of first offer to open additional Cd One Price Cleaners locations within that territory. This means that if Cd One Price Cleaners wants to grant someone else the right to develop and operate a Cd One Price Cleaners store within the ROFO Territory, they must first offer the opportunity to the existing franchisee, assuming the franchisee is in full compliance with all agreements.
It's important to note that the specific boundaries of both the Protected Territory and ROFO Territory will be defined in the Franchise Agreement before signing. The franchisee should carefully review these boundaries to understand the extent of their territorial rights and right of first offer. The franchisee does not receive marketing exclusivity within the ROFO territory.