For Cd One Price Cleaners, when is the development fee due?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Development fee (1) | $10,000 to $50,000 | Lump sum | Upon signing Development Rights Agreement | Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 20–28)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the development fee is due upon signing the Development Rights Agreement. The development fee ranges from $10,000 to $50,000. This fee is paid directly to Cd One Price Cleaners in a lump sum.
Cd One Price Cleaners calculates the development fee by multiplying $5,000 by the number of additional CD Stores to be developed under the Development Rights Agreement. These agreements typically cover between 2 and 10 CD Stores. Of this development fee, $5,000 will be applied toward the initial franchise fee owed under each franchise agreement covered by the Development Rights Agreement.
This fee covers the costs associated with site selection in the Development Area, business plan preparation, and related expenses during the initial 3-month period after signing the Development Rights Agreement. This includes fees for engaging a real estate consultant to help locate potential sites. It's important to note that this initial investment is non-refundable, so prospective franchisees should carefully consider their decision with a business advisor before acquiring development rights.