Does the transfer definition for Cd One Price Cleaners include involuntary assignments?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Agreement, the term "transfer" includes any voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition and includes, without limitation, the following events:
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the definition of "transfer" includes involuntary assignments. This means that any transfer of the franchise agreement, the store, its operating assets, or ownership interest in the franchisee, whether voluntary or involuntary, is subject to the franchisor's approval.
Specifically, the term "transfer" encompasses any direct or indirect assignment, sale, gift, or other disposition, whether voluntary or involuntary. This broad definition ensures that Cd One Price Cleaners retains control over who operates its franchises and maintains brand standards. The FDD lists examples of events that constitute a transfer, but this list is not exhaustive.
For a prospective franchisee, this means that any change in ownership or control, even due to unforeseen circumstances like a forced sale or assignment, requires the franchisor's consent. Failure to obtain this approval constitutes a breach of the franchise agreement. This provision protects Cd One Price Cleaners' interests by allowing them to vet potential new operators and ensure they meet the company's standards.