What is the initial term length for a Cd One Price Cleaners franchise agreement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
and/or the best interests of CD Stores as a whole at the time the decision is made, regardless of whether Franchisor could have made other reasonable or even arguably preferable alternative decisions or whether Franchisor's decision or the action it takes promotes its or its affiliates' financial or other individual interest.
2. TERM AND RENEWAL
- 2.1 Term of Franchise. Except as otherwise provided herein, the term of this Agreement (the "Term") shall commence on the Effective Date and shall expire, unless sooner terminated, at 11:59 p.m. on the tenth (10th) anniversary of the Effective Date.
- 2.2 Renewal of Franchise. Subject to the provisions of this Section, upon expiration of the Term, Franchisee shall have the right to obtain a renewal franchise to continue to operate the Store under the Operating Plans and the Proprietary Marks (a "Renewal Franchise") for one (1) successor term of ten (10) years if: (1) Franchisee and its owners have complied in all material respects with this Agreement during the Term and are then in full compliance with this Agreement; and (2) either (a) Franchisee maintains possession of the Site and agrees (regardless of cost) to remodel and/or expand the Store, add or replace improvements and operating assets, and otherwise modify the Store to bring it into compliance with Operating Plans then applicable for newly constructed CD Stores;
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, the initial term of the franchise agreement is ten years. Specifically, the agreement commences on the effective date and expires at 11:59 p.m. on the tenth anniversary of that date. This means a franchisee can expect to operate their Cd One Price Cleaners store for a decade under the initial agreement, assuming it is not terminated earlier.
Cd One Price Cleaners offers an opportunity for renewal, allowing franchisees to continue operating under the brand's system and marks for an additional ten-year term. However, this renewal is contingent upon the franchisee's compliance with the existing agreement's terms and conditions throughout the initial term. Additionally, franchisees must either maintain possession of the site and remodel the store to meet current brand standards or secure an acceptable substitute site for relocation.
It is important for prospective Cd One Price Cleaners franchisees to understand the conditions required for renewal, as significant investment may be necessary to upgrade or relocate the store to meet the franchisor's standards. The renewal agreement may also contain terms that differ materially from the original agreement, potentially affecting the franchisee's rights and obligations. Franchisees should carefully review the renewal terms and conditions to fully understand their commitments and the franchisor's expectations.