What constitutes a 'Group' in the context of Cd One Price Cleaners cost reporting?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
However, franchisees of the remaining 28 CD Stores reported their costs on a combined basis, covering each Plant Store and its associated Satellite Store(s). Because of the integrated nature between a Plant Store and its Satellite Store(s), these stores report occupancy costs on a combined basis; share employees and have employees perform production, delivery and other tasks for customers at both stores; and have one set of production/service supplies costs and utilities costs that provide services for customers of both stores. Therefore, franchisees effectively treat each of these Plant Store/Satellite Store combinations (each a "Group") as one combined location. For the remaining 28 franchised CD Stores operating as Groups as of December 31, 2024, there are 11 Groups that each have one Plant Store and one Satellite Store, and 2 Groups that each have one Plant Store and 2 Satellite Stores.
Source: Item 19 — Financial Performance Representations (FDD pages 63–68)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, a 'Group' refers to a combination of a Plant Store and its associated Satellite Store(s) when reporting costs. This combined reporting structure is due to the integrated nature of operations between the Plant Store and its Satellite Store(s).
Specifically, Cd One Price Cleaners franchisees operating Plant Stores with associated Satellite Stores report their costs on a combined basis. This is because these stores often share resources. These shared resources include occupancy costs, employees who perform tasks for customers at both locations, and a single set of production/service supplies and utilities that serve customers of both stores. Therefore, for cost reporting purposes, Cd One Price Cleaners treats each Plant Store/Satellite Store combination as a single combined location, or 'Group'.
As of December 31, 2024, among the 28 franchised Cd One Price Cleaners stores operating as Groups, 11 Groups each consisted of one Plant Store and one Satellite Store, while 2 Groups each included one Plant Store and two Satellite Stores. This combined reporting method provides a comprehensive view of the financial performance of integrated store operations, which is essential for accurate financial analysis and decision-making.