What are 'Sub-Territories' in the context of Cd One Price Cleaners PUD Services?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Services customers. Franchisee shall begin providing PUD Services under this Addendum in the PUD Territory within ten (10) business days after the date that Franchisor delivers that notice (the "PUD Start Date").
If the PUD Territory is divided into multiple "Sub-Territories" on Exhibit A, then the following provisions shall apply to Franchisee's development of PUD Services in the PUD Territory.
- (a) Franchisee shall begin providing PUD Services under this Addendum only in Sub-Territory #1 beginning on the PUD Start Date. Franchisor and Franchisee agree that the staged launch of PUD Services in the PUD Territory is a critical aspect of this Addendum. Therefore, Franchisee shall advertise, market, offer and provide PUD Services only in Sub-Territory #1 on the PUD Start Date, and shall not advertise, market, offer or provide PUD Services outside of Sub-Territory #1 (including, without limitation, within other areas of the PUD Territory) except in accordance with this Section 3.
- (b) Franchisee agrees to begin providing PUD Services in each additional Sub-Territory on or before each of the "Sub-Territory Launch Deadlines" listed on Exhibit A. Franchisee must obtain Franchisor's prior written approval before beginning to provide PUD Services in any additional Sub-Territory. Franchisee may determine, in its reasonable judgment, the particular Sub-Territory in which Franchisee begins offering PUD Services on each Sub-Territory Launch Deadline.
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, a 'Sub-Territory' is a division of the larger PUD (Pickup and Delivery) Territory granted to a franchisee. The FDD specifies that if a PUD Territory is divided into multiple Sub-Territories, the franchisee must initially launch PUD Services only in Sub-Territory #1. This staged launch approach is considered a critical aspect of the PUD Services addendum.
The franchisee is required to begin providing PUD Services in each additional Sub-Territory on or before the Sub-Territory Launch Deadlines listed on Exhibit A of the franchise agreement. Prior written approval from Cd One Price Cleaners is needed before expanding PUD Services into any additional Sub-Territory. The franchisee has the discretion to decide which specific Sub-Territory to launch in by each Sub-Territory Launch Deadline.
Failure to meet the Sub-Territory Launch Deadlines constitutes a breach of the addendum. This staged rollout allows Cd One Price Cleaners franchisees to manage their expansion of PUD services in a controlled manner, likely optimizing resource allocation and service quality as they grow their pickup and delivery operations. Prospective franchisees should carefully review Exhibit A to understand the Sub-Territory Launch Deadlines and plan their PUD service rollout accordingly.