Who are the members of a Cd One Price Cleaners Cooperative?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: We may designate a geographic area in which 2 or more CD Stores are located as an area for an advertising cooperative (a "Cooperative"). The Cooperative's members are the owners of all CD Stores operating in the area, including us and our affiliates, if applicable. All material decisions of the Cooperative, including contribution levels (which also require our approval), will require the affirmative vote of 51% of all CD Stores operating within the Cooperative's area (including those that we and our affiliates operate, if applicable), with each store receiving one vote. There are currently no advertising cooperatives in the CD Store network.
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 Cooperative is a designated geographic area with two or more Cd One Price Cleaners stores. The members of the Cooperative are the owners of all Cd One Price Cleaners stores operating in that area. This includes Cd One Price Cleaners itself and its affiliates, if applicable. Each store gets one vote in the Cooperative's decisions. All material decisions of the Cooperative, including contribution levels, require the affirmative vote of 51% of all Cd One Price Cleaners stores operating within the Cooperative's area. These contribution levels also require Cd One Price Cleaners' approval. As of the FDD date, there are no advertising cooperatives in the Cd One Price Cleaners network.
For a prospective franchisee, this means that if an advertising cooperative is established in their area, they will automatically become a member and have a say in the cooperative's decisions. However, Cd One Price Cleaners retains some control by requiring its approval for contribution levels. The franchisee should inquire about the likelihood of advertising cooperatives being formed in their target area and the potential costs and benefits of participating in one.
Since there are currently no advertising cooperatives, a prospective Cd One Price Cleaners franchisee should ask the franchisor about the criteria and process for establishing such cooperatives in the future. Understanding the conditions under which a cooperative might be formed and how contribution levels are determined will be crucial for budgeting and marketing strategy. It is also important to understand how the 51% vote is calculated and whether Cd One Price Cleaners' own stores could potentially outvote individual franchisees.