What payments are Cd One Price Cleaners subtenants responsible for if they hold over?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
If Subtenant holds over after the expiration or earlier termination of the Sublease Term or fails to deliver the Premises to Sublandlord in the condition required by the Prime Lease upon such termination, Subtenant shall be a tenant at sufferance only, and Subtenant shall pay to Sublandlord all amounts Sublandlord is required to pay Landlord under the Prime Lease as a result of the holding over and/or failure to deliver the Premises in the condition required, as and when such amounts are due and payable under the Prime Lease.
In addition, Subtenant shall indemnify, defend, protect and hold harmless Sublandlord from and against any and all claims, liabilities, demands, losses, costs, expenses (including attorneys' fees and costs), damages and proceedings in any way arising out of or resulting from Subtenant's holding over and/or failure to deliver the Premises in the condition required by the Prime Lease on the expiration or earlier termination of the Sublease Term.
Nothing contained herein shall be construed as consent by Sublandlord to any holding over.
Subtenant's obligations hereunder shall survive the expiration or earlier termination of this Sublease.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, if a subtenant remains on the premises after the sublease term expires or terminates early, they become a tenant at sufferance. In this situation, the subtenant is obligated to pay Cd One Price Cleaners all amounts that Cd One Price Cleaners is required to pay the Landlord under the Prime Lease. These payments cover the period of holding over and/or any failure to return the premises in the condition required by the Prime Lease. These amounts are due as and when they are payable under the Prime Lease.
Furthermore, the Cd One Price Cleaners franchisee (subtenant) must indemnify, defend, protect, and hold harmless Cd One Price Cleaners from any claims, liabilities, demands, losses, costs, expenses (including attorney's fees), damages, and proceedings arising from the subtenant's holding over or failure to deliver the premises as required by the Prime Lease upon the sublease's expiration or termination.
It is important to note that the sublease agreement explicitly states that nothing within it should be interpreted as Cd One Price Cleaners consenting to any holding over. The subtenant's obligations related to holding over survive the expiration or earlier termination of the sublease, meaning these financial responsibilities continue even after the formal agreement has ended. This clause protects Cd One Price Cleaners from potential losses or liabilities incurred due to a franchisee's failure to vacate the premises as agreed.