When is the Referral Fee due for Cd One Price Cleaners franchisees?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Referral Fee(7) | Amount we or COW negotiates with Referral Source (defined below), but will not be more than 5% of Gross PUD Revenue from the Referral Source customers | As incurred | See Note 7 |
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 Referral Fee is due 'as incurred.' This means the fee is payable when the cost is created or the obligation arises. The amount of the Referral Fee is determined by negotiations between Cd One Price Cleaners (or COW) and the Referral Source, but it will not exceed 5% of Gross PUD Revenue from the Referral Source customers.
In practical terms, a Cd One Price Cleaners franchisee will owe the Referral Fee whenever Cd One Price Cleaners or COW (presumably another related entity) secures customer referrals through agreements with third parties like property managers. The franchisee is responsible for paying these referral fees, ensuring that Cd One Price Cleaners is compensated for its efforts in acquiring new customers.
It's important for prospective franchisees to understand that these fees can fluctuate based on the negotiated agreements and the revenue generated from referred customers. Franchisees should budget for this ongoing expense and factor it into their financial projections. They should also seek clarification from Cd One Price Cleaners regarding the typical range of Referral Fees and the process for negotiating these agreements.