What is the name of the addendum that Cd One Price Cleaners uses for satellite stores?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B-2
SATELLITE STORE ADDENDUM
CLEANERS DEPOT FRANCHISE, LLC SATELLITE STORE ADDENDUM
This Satellite Store Addendum (the "Addendum") with an effective date of , 202 (the "Effective Date"), is made by and between Cleaners Depot Franchise, LLC, a Nevada limited liability company, with its principal place of business at One Mid America Plaza, Suite 125, Oakbrook Terrace, Illinois 60181 ("Franchisor"), and , with a principal place of business at ("Franchisee"). R E C I T A L S: A. Simultaneously with signing this Addendum, Franchisor and Franchisee are signing the Franchise Agreement effective as of the Effective Date under which Franchisor is granting Franchisee a franchise to develop and operate a satellite CD Store located at (the "Store") under the Proprietary Marks and Operating Plans (together with all addenda, riders, amendments, and modifications thereto, collectively, the "Franchise Agreement"). All initial capitalized terms used but not defined in this Addendum shall have the meanings set forth in the Franchise Agreement. B. Franchisee or Franchisee's affiliate (as applicable, called the "Plant Store Operator" for purposes of this Addendum) operates a full-production CD Store at (the "Plant Store") under a Franchise Agreement dated as of , 20 between Franchisor and the Plant Store Operator (together with all addenda, riders, amendments, and modifications thereto, collectively, the "Plant Store Franchise Agreement"). C. Franchisee has requested the right to develop and operate the Store under the Franchise Agreement as a satellite store with production support from the Plant Store, and Franchisor has agreed to grant those rights in accordance with the terms and conditions of this Addendum. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Addendum and in the Franchise Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Operation as a Satellite Store. Franchisor and Franchisee acknowledge and agree that the Store is not required nor permitted to contain dry cleaning machines, pressing equipment and this Addendum.
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the addendum used for satellite stores is called the "Satellite Store Addendum". This addendum is an agreement between Cleaners Depot Franchise, LLC, the franchisor, and the franchisee. It outlines the terms and conditions under which a franchisee can operate a satellite CD Store, which receives production support from a full-production CD Store (referred to as the Plant Store). The addendum clarifies that the satellite store is not required nor permitted to have dry cleaning machines or pressing equipment.
This addendum modifies the standard franchise agreement to accommodate the specific operational differences of a satellite store. For example, the franchisee must acquire dry cleaning and related services from a designated Plant Store Operator. The franchisee must also ensure that the Plant Store Operator complies with Cd One Price Cleaners' standards for satellite store operations, including the transportation of garments between the satellite store and the plant store. These standards are considered part of the Operating Plans under the Franchise Agreement.
Several sections of the standard Franchise Agreement are modified by the Satellite Store Addendum. For instance, the addendum stipulates that the initial lease term for the satellite store must be at least five years, which overrides a potentially different term in the standard agreement. Additionally, the addendum specifies that the franchisee's cost for refurbishing the store will not exceed $25,000. The Satellite Store Addendum also addresses local marketing spending requirements, potentially deleting a section of the Franchise Agreement if the Plant Store was operating in the Chicago market as of December 31, 2023.
Overall, the Satellite Store Addendum ensures that the satellite store operates in conjunction with a full-production plant, adhering to Cd One Price Cleaners' standards while adjusting certain requirements of the standard franchise agreement. The addendum, along with the Franchise Agreement, constitutes the entire agreement between Cd One Price Cleaners and the franchisee for the operation of a satellite store.