What is the dependency for a Cd One Price Cleaners franchisee to begin providing PUD services?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor agrees to provide an initial training program to Franchisee on the performance of PUD Services and the use of the Order Processing System (the "Initial PUD Training"). Franchisee (or its Designated Principal) and either the Store's general manager or assistant manager must complete the Initial PUD Training to Franchisor's satisfaction before Franchisee may provide PUD Services. Franchisee's trained personnel must then provide training to Franchisee's drivers and other personnel on the performance of PUD Services and the use of the Order Processing System in accordance with the PUD Standards.
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- PUD Territory and Launching PUD Services. The "PUD Territory" means the geographic area described on Exhibit A. Subject to this Section 3, Franchisee shall advertise, market, offer and provide PUD Services only in the PUD Territory, and Franchisee may not provide any PUD Services to any location outside the PUD Territory. Franchisee may not begin providing PUD Services until Franchisor notifies Franchisee and COW that Franchisee's personnel have completed the Initial PUD Training and COW has
completed all adaptations to and testing of the Order Processing System (defined below), including territory set up, in order to accept orders from Franchisee's PUD Services customers. Franchisee shall begin providing PUD Services under this Addendum in the PUD Territory within ten (10) business days after the date that Franchisor delivers that notice (the "PUD Start Date").
If the PUD Territory is divided into multiple "Sub-Territories" on Exhibit A, then the following provisions shall apply to Franchisee's development of PUD Services in the PUD Territory.
- (a) Franchisee shall begin providing PUD Services under this Addendum only in Sub-Territory #1 beginning on the PUD Start Date.
Franchisor and Franchisee agree that the staged launch of PUD Services in the PUD Territory is a critical aspect of this Addendum.
Therefore, Franchisee shall advertise, market, offer and provide PUD Services only in Sub-Territory #1 on the PUD Start Date, and shall not advertise, market, offer or provide PUD Services outside of Sub-Territory #1 (including, without limitation, within other areas of the PUD Territory) except in accordance with this Section 3.
- (b) Franchisee agrees to begin providing PUD Services in each additional Sub-Territory on or before each of the "Sub-Territory Launch Deadlines" listed on Exhibit A.
Franchisee must obtain Franchisor's prior written approval before beginning to provide PUD Services in any additional Sub-Territory.
Franchisee may determine, in its reasonable judgment, the particular Sub-Territory in which Franchisee begins offering PUD Services on each Sub-Territory Launch Deadline.
Franchisee's failure to begin offering PUD Services in an additional Sub-Territory on or before the Sub-Territory Launch Deadline is a breach of this Addendum.
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to the 2025 FDD, a Cd One Price Cleaners franchisee must first complete the Initial PUD Training program to the Franchisor's satisfaction before they can begin offering Pickup and Delivery (PUD) services. This training program includes instruction on both the performance of PUD services and the use of the Order Processing System. Furthermore, the franchisee must ensure that their drivers and other personnel also receive training on these aspects, adhering to the PUD Standards set by Cd One Price Cleaners.
Cd One Price Cleaners also requires that the franchisee may not begin providing PUD services until the franchisor notifies the franchisee and COW (presumably a third-party logistics provider) that the franchisee's personnel have completed the Initial PUD Training and COW has completed all adaptations to and testing of the Order Processing System, including territory set up, in order to accept orders from Franchisee's PUD Services customers. After this notification, the franchisee is expected to launch PUD services within ten business days, marking the 'PUD Start Date'.
Cd One Price Cleaners stipulates a staged launch of PUD services, particularly if the PUD Territory is divided into multiple Sub-Territories. In such cases, the franchisee must initially focus on Sub-Territory #1 on the PUD Start Date. Expansion into additional Sub-Territories requires the franchisor's prior written approval and must align with the Sub-Territory Launch Deadlines. Failure to meet these deadlines constitutes a breach of the addendum. This phased approach allows for controlled growth and service optimization within the designated territory.