What is the maximum Referral Fee that Cd One Price Cleaners franchisees may be charged?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Referral Fee(7) | Amount we or COW negotiates with Referral Source (defined below), but will not be more than 5% of Gross PUD Revenue from the Referral Source customers | As incurred | See Note 7 |
Source: Item 6 — Other Fees (FDD pages 13–20)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, a Referral Fee may be charged to franchisees. This fee is incurred when Cd One Price Cleaners or COW (presumably a related entity) negotiates with referral sources such as property managers of apartment buildings to gain access to customers for PUD (Pick-Up and Delivery) Services.
The amount of the Referral Fee is determined through negotiation with the referral source. However, the FDD stipulates that the Referral Fee will not exceed 5% of the Gross PUD Revenue generated from the customers acquired through the referral source. This fee is paid as incurred, either directly to the referral source or to Cd One Price Cleaners for disbursement to the referral source.
This means that as a Cd One Price Cleaners franchisee, you could be required to pay a Referral Fee to access customer bases through negotiated agreements. While the fee amount is subject to negotiation, it is capped at 5% of the Gross PUD Revenue derived from those referred customers. Franchisees should factor this potential cost into their financial projections, especially if they plan to heavily rely on PUD services and customer referrals facilitated by Cd One Price Cleaners or COW.