When is a Cd One Price Cleaners franchisee required to pay for insurance premiums?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs and attorneys’ fees | Will vary under circumstances | As incurred | Payable if you fail to comply with Franchise Agreement, De |
Source: Item 6 — Other Fees (FDD pages 13–20)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, a franchisee is required to pay for insurance premiums under specific circumstances. If a franchisee fails to maintain the required insurance, Cd One Price Cleaners has the option to secure the insurance coverage themselves. In such instances, the franchisee is responsible for covering the cost of the insurance premiums, in addition to Cd One Price Cleaners' costs and expenses associated with obtaining the coverage.
This means that maintaining the required insurance is crucial for a Cd One Price Cleaners franchisee. Failure to do so not only puts the business at risk but also results in the franchisee incurring additional expenses. These expenses include the cost of the premiums and any additional costs or expenses that Cd One Price Cleaners incurs to obtain the insurance.
This arrangement is fairly standard in franchising. Franchisors often require franchisees to maintain specific insurance coverage to protect the brand and the entire franchise system from potential liabilities. By reserving the right to obtain insurance on behalf of a non-compliant franchisee, Cd One Price Cleaners ensures continuous coverage, although at the franchisee's expense.