Under what circumstances can the Cd One Price Cleaners affiliate terminate the Sublease agreement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| e. Termination by franchisor without cause | Not applicable | Our affiliate may not terminate the Sublease without cause. |
| f. Termination by franchisor with cause | 6 of Sublease | Our affiliate may terminate if you commit any one of several defaults. |
| g. “Cause” defined – curable defaults | 6 of Sublease | The Sublease allows you to cure any curable defaults under prime lease. |
| h. “Cause” defined – non-curable defaults | 6 of Sublease | Non-curable default under prime lease, abandonment, and material breach of Franchise Agreement or other agreement. Our affiliate may cure your defaults. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–62)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the circumstances under which their affiliate may terminate the Sublease agreement are outlined in Section 6 of the Sublease. The affiliate cannot terminate the Sublease without cause. However, the affiliate can terminate the Sublease if the franchisee commits one of several defaults.
These defaults are further categorized into curable and non-curable defaults. For curable defaults, the Sublease allows the franchisee an opportunity to correct the default under the prime lease. This means that if the franchisee breaches a term of the prime lease that can be remedied, they will be given a chance to do so, preventing immediate termination of the Sublease.
However, if the franchisee commits a non-curable default under the prime lease, abandons the property, or materially breaches the Franchise Agreement or any other agreement, the affiliate has grounds for termination. It is important to note that the Cd One Price Cleaners' affiliate retains the right to cure any defaults made by the franchisee, which could prevent the termination of the Sublease.