What happens if any other franchise agreement between Cd One Price Cleaners and the developer is terminated?

According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, the Development Agreement can be terminated if the Current Franchise Agreement or any other franchise agreement between the franchisor and the developer (or any Affiliated Entity) for a CD Store is terminated by either party for any reason. This means that a breach or termination of any existing franchise agreement can trigger the termination of the Development Agreement, impacting the developer's rights to open additional locations.

This provision is significant for potential developers as it links the health of existing franchise agreements to the ability to develop new Cd One Price Cleaners locations. If a developer encounters issues with an existing store that leads to termination, it jeopardizes their entire development plan. This creates a higher level of risk and interdependence between individual franchise units and the overall development schedule.

Typically, franchise agreements include clauses allowing termination for various reasons, such as failure to meet performance standards, non-compliance with brand standards, or financial instability. The Cd One Price Cleaners agreement appears to extend this concept to the Development Agreement, making it crucial for developers to maintain all franchise agreements in good standing to avoid losing their development rights. Prospective developers should carefully consider this interconnectedness and ensure they have the resources and capabilities to manage multiple successful franchise locations simultaneously.