What are the Customer Development and Retention Payments used for by Cd One Price Cleaners?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) to Franchisor, additional contributions to the Marketing Fund for the "Customer Development and Retention Payments" in an amount equal to two percent (2%) of the Gross PUD Revenue, which shall be used to cover certain of the costs associated with the development, maintenance and operation of the customer development and retention function described in Section 8 above;
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees must make contributions to the Marketing Fund for Customer Development and Retention Payments. These payments are equal to two percent (2%) of the Gross PUD Revenue, which is the gross revenue generated by the Pickup and Delivery Services (PUD). These payments are specifically designated to cover certain costs associated with the development, maintenance, and operation of the customer development and retention function. This function is described in Section 8 of the addendum.
In simpler terms, Cd One Price Cleaners uses these funds to support activities aimed at attracting new customers for the PUD services and keeping existing customers satisfied. This includes managing customer inquiries, addressing concerns, and resolving issues related to PUD services, the customer's account, the Order Processing System, payment issues, and other customer service matters. The franchisor has the option to directly communicate with the franchisee's employees and customers regarding these issues.
Cd One Price Cleaners also has the discretion to address customer complaints and satisfaction issues, potentially offering refunds or credits for customer retention purposes. However, the franchisor cannot provide a refund or credit exceeding $25 per customer per order without the franchisee's consent. This system ensures that customer service issues are handled effectively while also giving the franchisee some control over financial decisions related to customer retention.
Overall, the Customer Development and Retention Payments are a mechanism for Cd One Price Cleaners to centrally manage and fund customer-related activities for the PUD services, aiming to improve customer acquisition and retention across the franchise system. Franchisees should understand that this 2% fee is specifically earmarked for these customer-focused initiatives and is separate from other fees and contributions.