What happens upon the death or mental incapacity of a Cd One Price Cleaners franchisee?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.5 Death or Mental Incapacity of Franchisee.
Upon the death or mental incapacity of Franchisee (if an individual) or of any person with an interest in Franchisee, the executor or
administrator of the estate of such person, or the personal representative of such person, shall transfer within six (6) months after such death or mental incapacity, such person's interest in the Store and this Agreement, or ownership interest in Franchisee, to a third party approved by Franchisor. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer, except that the transfer fee shall be waived.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, in the event of the death or mental incapacity of a franchisee, or any person with an interest in the franchisee, their estate's executor, administrator, or personal representative is required to transfer the deceased or incapacitated person's interest in the store and the Franchise Agreement to a third party approved by Cd One Price Cleaners. This transfer must occur within six months of the death or mental incapacity.
Cd One Price Cleaners stipulates that such transfers, including those by devise or inheritance, are subject to the same conditions as any transfer made during the franchisee's lifetime (inter vivos), with one exception: the transfer fee is waived. This means that while the standard transfer process applies, the estate will not have to pay a fee to complete the transfer to the approved third party.
This provision ensures that the Cd One Price Cleaners franchise continues to operate under approved management even in unforeseen circumstances. The six-month timeframe provides the estate with a reasonable period to find a qualified and approved buyer, while the waiver of the transfer fee alleviates some of the financial burden on the estate during a difficult time. However, the estate must still comply with all other transfer requirements, including obtaining franchisor approval of the buyer, to ensure a smooth transition and maintain the integrity of the Cd One Price Cleaners brand.