Is a sale of voting interests considered a transfer for a Cd One Price Cleaners franchise?

According to the 2025 FDD, Cd One Price Cleaners considers the sale or exchange of voting interests as a transfer. Specifically, this includes the sale or exchange of voting interests or securities convertible to voting interests. It also encompasses any management agreement or other agreement granting the right to exercise or control the exercise of the voting rights of any owner or to control the Franchisee's or the Store's operations or affairs.

This means that if a Cd One Price Cleaners franchisee plans to sell voting interests in their franchise, it is classified as a transfer under the franchise agreement. As such, the franchisee would need to seek approval from Cd One Price Cleaners, and the franchisor will not unreasonably withhold its approval of a transfer that meets all the requirements in this Section.

Cd One Price Cleaners requires that the franchisee be in full compliance with the agreement to get approval for the transfer. This also means that the franchisee may need to pay a transfer fee and ensure that the new owners sign a personal guarantee, binding them to the obligations of the franchise agreement. Franchisees should carefully review Article 12 of the franchise agreement to fully understand the conditions and requirements for obtaining franchisor approval for any transfer of interest.