What is the 'Rebate Credit' that a Cd One Price Cleaners franchisee can receive?
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, a franchisee may be eligible for a "Rebate Credit" under certain conditions. This credit is equivalent to 1% of the Gross Revenues for a fiscal 6-month period (January through June, or July through December). The purpose of this credit is to reward franchisees who maintain good standing with Cd One Price Cleaners. The credit is applied against future royalty fees.
To qualify for the Rebate Credit, the Cd One Price Cleaners franchisee must meet specific requirements during the 6-month period. These requirements include: timely payment of all amounts owed to Cd One Price Cleaners and its affiliates under any agreement, 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 under any agreement.
Cd One Price Cleaners calculates and applies the Rebate Credit on September 1 and March 1, based on the Gross Revenues from the prior period. The credit is then used to reduce the royalties payable in the weeks following the calculation until the Rebate Credit is exhausted. This system provides a direct financial incentive for franchisees to adhere to the standards and obligations set forth in the franchise agreement, ultimately benefiting both the franchisee and the Cd One Price Cleaners brand.