How often is the Rebate Credit calculated and applied for Cd One Price Cleaners franchisees?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: For any fiscal 6-month period (January through June or July through December), or any part of a 6-month period if the Franchise Agreement's term begins or ends during that period (each a "Period"), if you have: (a) timely paid all amounts owed to us and our affiliates, whether under the Franchise Agreement or any other agreement; (b) used only approved advertising and marketing materials according to the Franchise Agreement; (c) timely submitted to us and our affiliates all required records and reports (except as we describe below for a Reporting Default (defined below) that you cure); and (d) not received written notice from us or any of our affiliates of any default under the Franchise Agreement or any other agreement, then you will receive a credit against future royalty fees equal to 1% of the Gross Revenues for this Period (the "Rebate Credit"). We calculate and apply the Rebate Credit on each September 1 and March 1, based on the Gross Revenues for the prior Period, and reduce royalties payable for the weeks following this calculation until the Rebate Credit is reduced to zero.
Source: Item 6 — Other Fees (FDD pages 13–20)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the Rebate Credit is calculated and applied twice per year. Specifically, Cd One Price Cleaners calculates and applies the Rebate Credit on each September 1 and March 1.
The calculation is based on the Gross Revenues for the prior Period. The term 'Period' refers to either the fiscal 6-month period from January through June, or from July through December. If the Franchise Agreement's term begins or ends during a 6-month period, any part of that 6-month period is also considered a 'Period'.
To be eligible for the Rebate Credit, Cd One Price Cleaners franchisees must meet certain conditions during the relevant 'Period'. These conditions include timely payment of all amounts owed to Cd One Price Cleaners and its affiliates, use of only approved advertising and marketing materials, timely submission of all required records and reports, and absence of any written notice of default from Cd One Price Cleaners or its affiliates. If all these conditions are met, the franchisee will receive a credit against future royalty fees equal to 1% of the Gross Revenues for that Period. The credit is then used to reduce royalties payable for the weeks following the calculation until the Rebate Credit is reduced to zero.