What insurance coverages must a Cd One Price Cleaners franchisee obtain for PUD Vehicles?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must ensure that Franchisee (and, as applicable, its employees) obtain and maintain all additional insurance coverages that Franchisor
periodically specifies in accordance with Section 10 of the Franchise Agreement covering the PUD Vehicles and the performance of PUD Services at Franchisee's expense.
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, if a franchisee provides Pickup and Delivery (PUD) services, they must ensure that they (and their employees, if applicable) obtain and maintain all additional insurance coverages that the franchisor periodically specifies. This insurance must cover the PUD Vehicles and the performance of PUD Services, and it is to be obtained at the franchisee's expense, as outlined in Section 10 of the Franchise Agreement.
This requirement means that prospective Cd One Price Cleaners franchisees need to factor in the cost of these additional insurance coverages when considering offering PUD services. The specific types and amounts of coverage are not detailed in this section but are subject to the franchisor's periodic specifications and Section 10 of the Franchise Agreement. Therefore, franchisees must stay informed of any changes or updates to these insurance requirements as specified by Cd One Price Cleaners.
For a prospective franchisee, it is crucial to review Section 10 of the Franchise Agreement carefully and to seek clarification from the franchisor regarding the specific insurance coverages required for PUD Vehicles. Understanding these insurance obligations is essential for budgeting and ensuring compliance with the franchise agreement when offering PUD services under the Cd One Price Cleaners brand.