When is the Cd One Price Cleaners franchise fee due?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of expenditure | (2) Amount | (3) Method of payment | (4) When due | (5) To whom payment is to be made |
|---|---|---|---|---|
| Franchise fee(1) | $12,500 (but see Note 1) | Lump sum or installments | Upon signing your Franchise 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 franchise fee for both plant and satellite stores is due upon signing the Franchise Agreement. For a satellite store, the franchise fee is $12,500, while for a smaller or larger plant store, the franchise fee is $30,000. The method of payment can be either a lump sum or in installments.
It is important to note that the FDD mentions a Development Rights Agreement, which involves a development fee of $5,000 multiplied by the number of additional CD Stores to be developed. According to the FDD, these agreements typically cover between 2 and 10 CD Stores. A portion of this development fee, specifically $5,000, is applied toward the initial franchise fee owed under each franchise agreement covered by the Development Rights Agreement.
Prospective franchisees should carefully consider the timing of this payment, as it represents a significant upfront investment. Understanding the payment options (lump sum vs. installments) and any potential application of development fees is crucial for financial planning. Additionally, franchisees should be aware of the conditions for any potential refunds of the franchise fee, as detailed in Item 5 of the FDD.