What do the 'Production/Service Supplies Costs' for Cd One Price Cleaners include?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) "Production/Service Supplies Costs" reflect the amounts paid for replacement pads and covers for pressing equipment (including associated labor costs), dry cleaning solvents and other solvents, and other supplies used for dry cleaning and laundry processes, such as register tape, laundry bags, tags, detergent, spotting kits, hangers and poly bags. Factors affecting Production/Service Supplies Costs include the Cost Reporting Store's Gross Revenue and its ability to limit waste, manage inventory levels and purchases, and encourage customer hanger recycling. This figure does not cover all costs associated with production at the CD Stores, such as costs for office and janitorial supplies, customer claims costs and costs to maintain, repair or replace equipment.
Source: Item 19 — Financial Performance Representations (FDD pages 63–68)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, 'Production/Service Supplies Costs' encompass specific operational materials. These costs account for replacement pads and covers for pressing equipment, including any associated labor for replacements. They also include the dry cleaning solvents and other solvents necessary for cleaning.
Additionally, the 'Production/Service Supplies Costs' cover other supplies directly used in the dry cleaning and laundry processes. Examples of these supplies are register tape for transactions, laundry bags for customer orders, tags for identifying garments, detergents for washing, spotting kits for stain removal, hangers for finished clothes, and poly bags for protecting cleaned items.
It is important to note that these costs do not represent all production-related expenses. Specifically excluded are costs for office and janitorial supplies, customer claims costs, and expenses related to maintaining, repairing, or replacing equipment. The FDD indicates that a Cd One Price Cleaners store's gross revenue and its ability to manage waste, inventory, and hanger recycling can affect these production/service supplies costs.