What is the purpose of the Rider to Lease and Collateral Assignment for a Cd One Price Cleaners franchise?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
The lease must contain the provisions we periodically specify to protect our interests as your franchisor.
We will use commercially reasonable efforts to notify you of our acceptance or rejection within 15 days after receiving the proposed lease.
You and the landlord must sign our Rider to Lease and Collateral Assignment (Exhibit B to the Franchise Agreement) which modifies certain terms of the lease and under which we have the right, but not the obligation, to assume the lease upon your default.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 33–47)
What This Means (2025 FDD)
According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, the Rider to Lease and Collateral Assignment is a document that modifies certain terms of the lease agreement for the store's site. This agreement is signed by both the franchisee and the landlord.
The primary purpose of this rider is to protect Cd One Price Cleaners's interests as the franchisor. It grants Cd One Price Cleaners the right, but not the obligation, to assume the lease if the franchisee defaults on their obligations. This provision ensures that Cd One Price Cleaners has the option to maintain control of the location and continue operations, even if the franchisee is unable to do so.
For a prospective Cd One Price Cleaners franchisee, this means they must ensure the lease for their store site includes the provisions specified by the franchisor. They must also be prepared to sign the Rider to Lease and Collateral Assignment, understanding that Cd One Price Cleaners has the right to take over the lease in case of default. This is a fairly standard practice in franchising, as it protects the brand and ensures business continuity.