What standards must a Cd One Price Cleaners franchisee's advertising conform to?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
raph Franchisee assigns ownership of that item, and all related rights to that item, to Franchisor and agrees to sign (and to cause its owners, employees and contractors to sign) whatever assignment and other documents Franchisor periodically requests to evidence Franchisor's ownership and to help it obtain intellectual property rights in the item. Franchisee may not use any Innovation in operating the Store or otherwise without Franchisor's prior approval.
9. ADVERTISING
Recognizing the value of advertising and promotion to the furtherance of the goodwill and public image associated with the Proprietary Marks, the parties agree as follows:
9.1 Local Advertising and Marketing.
- 9.1.1 All advertising and promotion by Franchisee shall be in such media and of such type and format as Franchisor may periodically approve, shall be conducted in a dignified manner and shall conform to such standards and requirements as Franchisor may periodically specify. Franchisee shall submit samples of all proposed advertising and promotional plans and materials to Franchisor for its approval at least thirty (30) days before their intended use, unless such plans and materials were prepared or approved by Franchisor within the last six (6) months. No such plans or materials shall be used unless and until Franchisor shall have furnished written notice authorizing such use. Franchisor also shall have the right, at any time after use of such materials commences, to prohibit further use, effective upon delivery of written notice to Franchisee.
- 9.1.2 Beginning on the date which is twelve (12) months after the Store first opens for business, Franchisee must spend each calendar quarter at least one percent (1%) of the Store's Gross Revenues during that calendar quarter on approved local adverting, marketing and promotional programs for the Store. Upon Franchisor's request, Franchisee must provide Franchisor with proof of the programs Franchisee conducted and the amounts spent. At Franchisor's option, Franchisee must periodically prepare and submit to Franchisor for its approval a proposed local advertising and marketing plan that contemplates spending at least the amount required under this Section 9.1.2 and must implement the plan in the form that Franchisor approved it. If Franchisee fails to make the required expenditure, Franchisor may collect and contribute the deficiency to the Marketing Fund.
- 9.2 Initial Opening Promotion. Franchisor shall prepare an initial grand opening advertising and marketing program for the Store requiring Franchisee to spend approximately Fifty Thousand Dollars ($50,000) within the first nine (9) months after the Store first opens for business (the "Opening Marketing Program"). Franchisee agrees to execute the Opening Marketing Program in the manner that Franchisor specifies. Franchisee agrees to spend Forty-Two Thousand Five Hundred Dollars ($42,500) towards the Opening Marketing Program, and Franchisor agrees to cause the Marketing Fund to pay the remaining Seven Thousand Five Hundred Dollars ($7,500). Despite Franchisor's development of the Store's Opening Marketing Program, Franchisor makes no representation or warranty, and assumes no liability, relating to that program's impact or benefit.
- 9.3 Marketing Fund. Franchisor shall institute, maintain and administer a marketing fund (the "Marketing Fund") to promote CD Stores in the United States subject to the terms and conditions of this Section 9.3. Franchisee shall contribute to the Marketing Fund the amount that Franchisor periodically specifies, which will not exceed three percent (3%) of Gross Revenues, payable to Franchisor by separate check or transfer at the same time and in the same manner as the royalty due hereunder. CD Stores in the United States which are owned by Franchisor or its affiliates, to the extent Franchisor has the right to require such affiliates to do so, shall contribute to the Marketing Fund on the same basis as Franchisee.
Franchisor shall direct all programs and activities financed by the Marketing Fund, with sole control over the strategic direction, creative concepts, materials and endorsements used and the geographic, market, and media placement and allocation thereof. The Marketing Fund may be used to pay various costs and expenses, including, without limitation: preparing, producing and placing video, audio and written advertising materials and electronic media, including the System Website(s) (defined below); interest on borrowed funds; costs to prepare and place coupons and inserts in newspapers and other publications;
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, all advertising and promotion by a franchisee must be in a medium, type, and format approved by the franchisor. The advertising must be conducted in a dignified manner and conform to the standards and requirements the franchisor specifies.
A Cd One Price Cleaners franchisee must submit samples of all proposed advertising and promotional plans and materials to the franchisor for approval at least 30 days before their intended use, unless the franchisor prepared or approved the plans and materials within the last six months. The franchisee can only use the plans or materials once the franchisor furnishes written notice authorizing their use. The franchisor can prohibit further use of the materials at any time after use commences, effective upon delivery of written notice to the franchisee.
Beginning 12 months after the store opens, a Cd One Price Cleaners franchisee must spend at least 1% of the store's gross revenues during each calendar quarter on approved local advertising, marketing, and promotional programs. The franchisee must provide the franchisor with proof of the programs conducted and the amounts spent upon the franchisor's request. The franchisee must periodically prepare and submit a proposed local advertising and marketing plan that contemplates spending at least the required amount and must implement the plan in the form that the franchisor approved. If the franchisee fails to make the required expenditure, the franchisor may collect and contribute the deficiency to the Marketing Fund.
Cd One Price Cleaners may designate a geographic area in which two or more CD Stores are located as a region for an advertising cooperative. Franchisees must contribute to the Cooperative the amounts that the Cooperative determines, which amounts are subject to Franchisor's approval. However, Franchisor will not require Franchisee to contribute more than two percent (2%) of Gross Revenues to any Cooperative. The Cooperative and its members may not use any advertising, marketing or promotional programs or materials without Franchisor's prior written consent.