Can Cd One Price Cleaners transfer the development agreement without restriction?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, neither Developer nor any of its direct or indirect owners
CD DRA 2025-26 5
may transfer (as defined in the Current Franchise Agreement) this Agreement or any direct or indirect ownership interests in Developer without Franchisor's prior written approval, which Franchisor may grant or withhold for any or no reason. Franchisor may transfer this Agreement or any of Franchisor's direct or indirect ownership interests without restriction.
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, as the franchisor, can transfer the development agreement without any restrictions. This means that Cd One Price Cleaners has the freedom to assign the agreement to another party without needing the developer's consent or meeting specific conditions.
However, the developer's ability to transfer the agreement is limited. The document states that the developer cannot transfer the agreement or any ownership interests without Cd One Price Cleaners' prior written approval. Cd One Price Cleaners has the discretion to grant or withhold this approval for any reason, or no reason at all.
This clause highlights a significant power imbalance in favor of Cd One Price Cleaners. A prospective developer should carefully consider this provision, as it means they cannot freely sell their rights or interests in the development agreement should they encounter unforeseen circumstances or wish to exit the agreement. This is a fairly standard practice in franchising, where the franchisor wants to maintain control over who is developing their brand.