Is there any restriction on Cd One Price Cleaners changing its ownership or form?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) be acquired (in whole or in part and regardless of the form of transaction) by a business providing products and services similar or dissimilar to those provided at CD Stores, or by another business, even if such business operates, franchises and/or licenses one or more competitive businesses within the Protected Territory or ROFO Territory; and
(d) acquire (in whole or in part and regardless of the form of transaction) one or more businesses providing products and services similar or dissimilar to those provided at CD Stores, and franchise, license and create other arrangements of any type with respect to those businesses once acquired, wherever these businesses (or the franchisees or licensees of those businesses) are located or operating (whether within or outside the Protected Territory or 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, Cd One Price Cleaners retains the right to be acquired by another business, even one that competes with existing franchisees. Specifically, Cd One Price Cleaners can be acquired in whole or in part, regardless of the transaction's structure. This includes acquisition by a business providing similar or dissimilar products and services to those offered at Cd One Price Cleaners stores, or even by a business that operates, franchises, or licenses competitive businesses within a franchisee's protected territory or ROFO territory.
Cd One Price Cleaners also reserves the right to acquire other businesses that offer similar or different products and services. After acquiring these businesses, Cd One Price Cleaners can franchise, license, or create other arrangements with them, irrespective of their location, whether within or outside a franchisee's protected territory.
This clause gives Cd One Price Cleaners significant flexibility in its business dealings, allowing for potential changes in ownership or business structure. For a franchisee, this means that the competitive landscape could change if Cd One Price Cleaners is acquired by or merges with a competitor. It also means that Cd One Price Cleaners could potentially introduce new services or products through acquired businesses, which could impact the franchisee's operations.