What is the length of the renewal term for a Cd One Price Cleaners franchise?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
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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; or (b) if Franchisee is unable to maintain possession of the Site, or if, in the judgment of Franchisor, the Store should be relocated, Franchisee secures a substitute site within the Protected Territory that Franchisor accepts and agrees to develop expeditiously such substitute site in compliance with specifications and standards then applicable for newly-constructed CD Stores.
Franchisee shall give Franchisor written notice of its election to obtain a Renewal Franchise not more than twelve (12) months, and not less than six (6) months, before this Agreement expires. The grant of a Renewal Franchise shall be conditioned upon Franchisee's continued compliance with all the terms and conditions of this Agreement and the conditions on obtaining a Renewal Franchise that Franchisor specifies up to the date that this Agreement expires. To obtain a Renewal Franchise, Franchisor, Franchisee and its owners shall execute the form of franchise agreement and any ancillary agreements then customarily used by Franchisor in the grant of franchises for the operation of CD Stores (with appropriate modifications to the term and other appropriate provisions to reflect the fact that the agreement relates to a Renewal Franchise), which may contain provisions materially different from those contained in this Agreement, including, without limitation, modifications to the Protected Territory and ROFO Territory and Franchisee's rights with respect thereto, except that (x) such agreement shall not provide for the payment of any renewal fee, and (y) if such form of franchise agreement then provides additional renewal or successor franchise rights to franchisees, then Franchisor will provide such rights to Franchisee under the same terms and conditions as it provides such rights
to other franchisees. As additional consideration for the grant of the Renewal Franchise, Franchisee and its owners shall execute general releases, in form satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates and their respective owners, officers, employees, agents, successors and assigns.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise for one successor term of ten years. This renewal is contingent upon the franchisee and its owners complying with the existing agreement in all material respects during the initial term and being in full compliance at the time of renewal.
To secure a renewal, the franchisee must notify Cd One Price Cleaners in writing of their intent to renew, doing so not more than twelve months and not less than six months before the expiration of the current agreement. The grant of the renewal is subject to the franchisee's continued adherence to all terms and conditions of the agreement and any specific conditions for renewal that Cd One Price Cleaners may specify up to the agreement's expiration date.
As part of the renewal process, the franchisee will be required to execute the current form of franchise agreement and any related ancillary agreements used by Cd One Price Cleaners for new franchises, with modifications to reflect that it is a renewal. While these agreements may contain terms that differ materially from the original agreement, Cd One Price Cleaners will not charge a renewal fee, and if the new agreement provides additional renewal or successor franchise rights, those rights will be extended to the renewing franchisee under the same terms offered to new franchisees. The franchisee and its owners must also provide general releases of any claims against Cd One Price Cleaners and its affiliates as consideration for the renewal.