What employee-related costs are NOT included in the 'Labor Costs' for Cd One Price Cleaners?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) "Labor Costs" reflect salaries and wages (including overtime), incentive compensation, vacation pay and associated payroll taxes paid to the Stand-Alone Plant Store's or Group's employees. This figure does not cover all employee-related costs associated with operating the Cost Reporting Stores, such as payroll processing fees, health insurance or workers' compensation insurance premiums, uniforms, or meal, travel and other expenses for employees. Factors affecting Labor Costs include the managers' operational ability (including experience with managing and scheduling staff), the manager's commitment to training staff and implementing
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, the reported 'Labor Costs' do not encompass all expenses related to employees. While 'Labor Costs' do include salaries and wages (including overtime), incentive compensation, vacation pay, and associated payroll taxes, there are several exclusions a prospective franchisee should be aware of.
Specifically, the 'Labor Costs' figure excludes costs such as payroll processing fees, health insurance premiums, and workers' compensation insurance premiums. Additionally, the figure does not account for the costs of employee uniforms, meals, travel, and other miscellaneous expenses incurred by employees. These omissions mean that a franchisee's actual employee-related expenses could be significantly higher than what is indicated by the 'Labor Costs' figure alone.
Prospective franchisees should carefully consider these additional employee-related costs when developing their business plan and financial projections. It is important to factor in these expenses to get a more accurate understanding of the overall cost of operating a Cd One Price Cleaners franchise. Furthermore, franchisees should inquire about typical ranges for these excluded costs from existing franchisees to refine their financial models.