What happens if a Cd One Price Cleaners franchisee is providing PUD Services?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
d refurbishing the Store during the Franchise Agreement's term.
If you are developing a Plant Store, you will offer PUD Services from the Store under the PUD Addendum. The standards, specifications, operating procedures and rules applicable to providing PUD Services, as we may periodically promulgate and modify them (collectively, the "PUD Standards"), have evolved over time as our affiliates and certain franchisees have tested and refined the model and procedures for offering PUD Services and marketing of PUD Services to consumers. You must obtain all computer and other equipment, technology (including customer management software) and other products and services that we periodically specify to provide PUD Services and, our option, obtain them only from suppliers that we periodically designate or approve, which may be us or our affiliates.
Collectively, the purchases and leases you make from designated or approved suppliers, or according to our Operating Plans, represent virtually 100% of your total purchases and leases to establish and operate the Store.
We and/or our affiliates do not derive revenue based on your and other franchisees' purchases and leases. During 2024, neither we nor any of our affiliates received, and we and our affiliates do not currently plan to receive, any payments from suppliers on account of our franchisees' purchases or leases from those suppliers. If we or our affiliates receive these payments in the future, we and they currently plan to pay to franchisees or contribute to the Marketing Fund the portion of those rebates that are based on franchisees' purchases, but we may change these plans at any time.
Our affiliates received $1,338,253 in revenue during the 2024 fiscal year in rent and related payments from franchisees under subleases for CD Stores. We derive this figure from our affiliates' internally-prepared financial statements. Otherwise, neither we nor our affiliates derived revenue or other material consideration from selling or leasing products or services to franchisees during 2024.
There currently are no purchasing or distribution cooperatives. We and our affiliates may negotiate purchase arrangements with suppliers (including price terms) for franchisees and our affiliates for some required CD Store items.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–31)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, if a franchisee is developing a Plant Store and offers PUD (Pick-Up and Delivery) Services, they must do so under the PUD Addendum. The standards, specifications, operating procedures, and rules applicable to providing PUD Services are referred to as the "PUD Standards," which Cd One Price Cleaners may periodically modify. These standards have evolved over time based on testing and refinement by Cd One Price Cleaners' affiliates and certain franchisees.
Cd One Price Cleaners franchisees providing PUD Services must obtain all necessary computer and other equipment, technology (including customer management software), and other products and services that Cd One Price Cleaners specifies. At Cd One Price Cleaners' option, these items must be obtained only from suppliers that Cd One Price Cleaners periodically designates or approves, which may include Cd One Price Cleaners or its affiliates. Furthermore, customers will pay the credit card/payment processor whom COW periodically designates, and the franchisee will acquire code tags from Cd One Price Cleaners' designated supplier.
All other products and services that a Cd One Price Cleaners franchisee buys or leases for their Store, including any vehicles used for PUD Services or to deliver garments between a Plant Store and a Satellite Store, need to meet Cd One Price Cleaners' standards and specifications. These standards and specifications, which may impose minimum requirements for delivery, performance, reputation, prices, quality, design, and appearance, are issued and modified based on Cd One Price Cleaners' affiliates' experience in developing and operating CD Stores. The Manual or other communications will identify these standards and specifications, and Cd One Price Cleaners will provide them to approved suppliers as needed.