Can approved suppliers for Cd One Price Cleaners specify automatic debit arrangements?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
ON SOURCES OF PRODUCTS AND SERVICES**
Franchise Agreement
You must purchase all Operating Assets (defined below) and other products, supplies and services for the Store solely from suppliers (including manufacturers, wholesalers and distributors) who demonstrate, to our continuing satisfaction, the ability to meet our standards and specifications for these items and for the supplier's business operations; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and whom, if we require, we have approved in our confidential operating manual (the "Manual") or otherwise in writing. These suppliers might include or be limited to us or our affiliates. You also must buy products and services from approved suppliers according to any payment and other terms (like automatic debit arrangements) that they periodically specify. "Operating Assets" means all fixtures, furnishings, dry cleaning equipment, auto-assembly system and Kiosk System, other equipment, Computer System, décor and signs that we periodically specify.
We may periodically modify the list of designated and approved suppliers and may in the future designate ourselves or an affiliate as a designated or approved supplier of certain products and services.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–31)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees must adhere to the payment terms specified by approved suppliers, including automatic debit arrangements. This requirement is part of the broader supply chain management imposed by Cd One Price Cleaners to ensure standardization and quality across all franchise locations. Franchisees are obligated to purchase operating assets, products, supplies, and services exclusively from suppliers who meet the franchisor's standards and specifications. These suppliers are listed in the confidential operating manual or otherwise approved in writing by Cd One Price Cleaners.
This policy ensures that Cd One Price Cleaners maintains control over the quality and consistency of products and services used throughout the franchise network. By mandating the use of approved suppliers and adherence to their payment terms, including automatic debits, Cd One Price Cleaners aims to streamline operations and maintain uniform standards. The franchisor retains the right to modify the list of approved suppliers and may even designate themselves or an affiliate as a supplier.
For a prospective Cd One Price Cleaners franchisee, this means they must be prepared to comply with the payment terms set by approved suppliers, which may include automatic debit arrangements. While this ensures a consistent supply chain, it also limits the franchisee's flexibility in negotiating payment terms. Franchisees should factor these requirements into their financial planning and ensure they are comfortable with the suppliers' terms before committing to the franchise. It is important to note that virtually 100% of the purchases and leases to establish and operate the store must be made from designated or approved suppliers, or according to the Operating Plans.