What standard lease terms may Cd One Price Cleaners require in writing?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
ographic and/or other factors included in or excluded from Franchisor's site criteria could change, thereby altering a site's potential. The uncertainty and instability of these criteria are beyond Franchisor's control, and Franchisor is not responsible for the failure of the Site to meet Franchisor's or Franchisee's expectations.
- 1.2.2 Franchisee agrees to present the lease for the Site (the "Lease") to Franchisor for Franchisor's prior written acceptance before Franchisee signs it (if Franchisee is not the fee simple owner of the Site and Store premises). After negotiating the Lease terms with the Site's owner or lessor, Franchisee shall present the ready-to-besigned Lease to Franchisor for its review and acceptance. Franchisee shall ensure that such Lease includes such standard lease terms as Franchisor may require in writing from time to time, including, without limitation, the lease terms described in Section 6.10. After receiving a copy of a proposed Lease in form for execution, Franchisor shall have the sole right to accept, accept with modifications or refuse to accept such proposed Lease, and Franchisee acknowledges and agrees that Franchisor shall have no liability therefor, provided that Franchisor shall not unreasonably withhold its acceptance of a proposed Lease that contains the standard lease terms that Franchisor periodically specifies. Franchisor agrees to use commercially reasonable efforts to deliver such notification to Franchisee within fifteen (15) days after receiving the proposed Lease. Franchisee agrees that it will not execute a Lease without Franchisor's the prior written acceptance of the Lease.
Franchisee acknowledges that Franchisor's acceptance of the Lease is not a representation or warranty of any kind, express or implied, of the suitability of the Lease. Franchisor's acceptance indicates only that Franchisor believes that the Lease meets, or Franchisor has waived, the general criteria of acceptability that Franchisor has established as of that time. Simultaneously with signing the Lease, Franchisee and the Site's owner or lessor shall sign the Rider to Lease and Collateral Assignment attached as Exhibit B.
Franchisee shall deliver to Franchisor a copy of the fully signed Lease as previously accepted within five (5) days after its full execution. Franchisee shall not execute or agree to any modification of the Lease without Franchisor's prior written acceptance. Franchisee must obtain a fully-signed Lease (in a form which Franchisor has accepted) within thirty (30) days after the date of this Agreement.
If Franchisor or one of its affiliates is the fee simple owner or prime lessee of the Site and/or Store, then simultaneously with signing this Agreement, Franchisee shall sign the form of lease or sublease that Franchisor specifies pursuant to which Franchisee shall lease or sublease the Site and/or Store from Franchisor or such affiliate.
- 1.2.3 The Site shall not be changed without Franchisor's prior written acceptance of the new Site, which acceptance may be subject to, among other requirements, fulfillment of all obligations in this Agreement and/or that Franchisor then specifies regarding the Store's appearance and required furniture, fixtures and equipment at the new location. Franchisee shall pay Franchisor a relocation fee in an amount equal to Seven Thousand Five Hundred Dollars ($7,500). Franchisee shall pay such relocation fee to Franchisor at the time Franchisee submits its relocation request package to Franchisor. The relocation fee is refundable only if Franchisor does not accept Franchisee's proposed new Site.
- 1.3 Territorial Rights. Franchisee's "Protected Territory" and "ROFO Territory" are described on Exhibit A. During the term of this Agreement, and provided Franchisee is not in default under this Agreement, except as otherwise provided in this Agreement:
- (a) Franchisor will not operate, or grant a franchise for the operation of, a CD Store the physical premises of which are located within the Protected Territory; and
- (b) Franchisor will not operate, or grant a franchise for the operation of, a CD Store the physical premises of which are located within the ROFO Territory unless Franchisor complies with Section 1.4 below (to the extent required).
- 1.4 Right of First Offer in ROFO Territory.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees must present the site lease to Cd One Price Cleaners for written acceptance before signing, if the franchisee does not own the site. Franchisees must ensure the lease includes standard terms that Cd One Price Cleaners requires in writing. Cd One Price Cleaners has the right to accept, modify, or refuse the proposed lease, but will not unreasonably withhold acceptance if the lease contains the standard terms they specify. Franchisees cannot execute a lease without prior written acceptance from Cd One Price Cleaners.
Cd One Price Cleaners' acceptance of the lease does not represent a warranty of its suitability, but indicates that it meets the general criteria of acceptability. Franchisees must sign the Rider to Lease and Collateral Assignment (Exhibit B) with the site owner or lessor when signing the lease. A copy of the fully signed lease must be delivered to Cd One Price Cleaners within five days of execution, and franchisees cannot modify the lease without prior written acceptance from Cd One Price Cleaners. The fully-signed lease must be obtained within 30 days of the Franchise Agreement date.
Cd One Price Cleaners may require the following terms and conditions in the lease: an initial term of at least ten years (unless otherwise agreed in writing), lessor consent to the use of Proprietary Marks and signage, restriction of the leased premises solely to the operation of the Store, prohibition of subleasing or assigning occupancy rights or extending/renewing the lease without prior written consent from Cd One Price Cleaners, the right for Cd One Price Cleaners to enter the site for modifications or to cure defaults, at least thirty days' notice to Cd One Price Cleaners before any lease amendment, and the ability to change Store signage without the landlord's further consent.
These stipulations ensure that Cd One Price Cleaners maintains control over the brand's image and operational standards, and protects their interests in the leased property. Prospective franchisees should carefully review these requirements and discuss any concerns with Cd One Price Cleaners before committing to a lease agreement. This is a fairly common practice in franchising, as it allows the franchisor to protect their brand and ensure consistency across all locations.