For Cd One Price Cleaners, who is subject to the non-competition agreement after the term?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
For two (2) years commencing upon the effective date of the expiration or termination of this Agreement (regardless of the cause for termination), neither Franchisee nor any of its owners, nor any member of the immediate family of Franchisee or any of its owners, shall, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person or legal entity, own any equity interest in, maintain, advise, operate, engage in, be employed by, make loans to, have any other direct or indirect interest in, or
otherwise maintain any direct or indirect relationship or association with, a Competitive Business which is located or operating (a) at the Site, (b) within a ten (10)-mile radius of the Site, or (c) within a five (5)-mile radius of any CD Store then operating or under construction. The provisions of this Section shall also apply to any transferee (and any member of the immediate family of any transferee) following a transfer by Franchisee or its direct or indirect owner, or Franchisor's exercise of its right of first refusal, under Article 12. The time period during which these restrictions apply will be automatically extended, with respect to all persons covered by this Section 15.3, for each day during which any person covered by this Section 15.3 is not complying fully with this Section 15.3.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 FDD, the non-competition agreement for Cd One Price Cleaners extends to the franchisee, their owners, and members of their immediate family for two years after the termination or expiration of the franchise agreement. This restriction applies regardless of the reason for termination.
Specifically, these individuals are prohibited from owning any equity interest in, maintaining, advising, operating, being employed by, making loans to, or having any direct or indirect interest in a Competitive Business. This includes any association with a business offering dry cleaning, finished laundry services, or related cleaning services.
The non-compete restrictions apply if the Competitive Business is located at the original franchise site, within a 10-mile radius of that site, or within a 5-mile radius of any other Cd One Price Cleaners store that is currently operating or under construction. Furthermore, these restrictions also apply to any transferee and their immediate family members if the franchise is transferred. The period of non-compliance will extend the restriction period for each day of non-compliance.