How does a Cd One Price Cleaners franchisee pay into the Marketing Fund?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Marketing Fund. Franchisor shall institute, maintain and administer a marketing fund (the "Marketing Fund") to promote CD Stores in the United States subject to the terms and conditions of this Section 9.3. Franchisee shall contribute to the Marketing Fund the amount that Franchisor periodically specifies, which will not exceed three percent (3%) of Gross Revenues, payable to Franchisor by separate check or transfer at the same time and in the same manner as the royalty due hereunder. CD Stores in the United States which are owned by Franchisor or its affiliates, to the extent Franchisor has the right to require such affiliates to do so, shall contribute to the Marketing Fund on the same basis as Franchisee.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. The amount is determined by Cd One Price Cleaners, but will not exceed three percent (3%) of Gross Revenues.
The contribution is payable to Cd One Price Cleaners by separate check or transfer. This payment is due at the same time and in the same manner as the royalty fees owed by the franchisee. Cd One Price Cleaners also states that its own stores, or those of its affiliates, will contribute to the Marketing Fund on the same basis as the franchisees, to the extent that Cd One Price Cleaners has the right to require such contributions.
Cd One Price Cleaners retains control over the Marketing Fund's strategic direction, creative content, and placement of advertising. The fund is used for various marketing expenses, including advertising materials, website maintenance, and market research. Franchisees are required to participate in all programs instituted by the Marketing Fund. Cd One Price Cleaners may also provide franchisees with marketing materials at cost.