What standards and specifications must suppliers meet to be approved by Cd One Price Cleaners?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
ON SOURCES OF PRODUCTS AND SERVICES**
Franchise Agreement
You must purchase all Operating Assets (defined below) and other products, supplies and services for the Store solely from suppliers (including manufacturers, wholesalers and distributors) who demonstrate, to our continuing satisfaction, the ability to meet our standards and specifications for these items and for the supplier's business operations; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and whom, if we require, we have approved in our confidential operating manual (the "Manual") or otherwise in writing. These suppliers might include or be limited to us or our affiliates. You also must buy products and services from approved suppliers according to any payment and other terms (like automatic debit arrangements) that they periodically specify. "Operating Assets" means all fixtures, furnishings, dry cleaning equipment, auto-assembly system and Kiosk System, other equipment, Computer System, décor and signs that we periodically specify.
We may periodically modify the list of designated and approved suppliers and may in the future designate ourselves or an affiliate as a designated or approved supplier of certain products and services. We may designate or approve a single supplier for any products or services and may designate or approve a supplier only as to certain products or services, and our approval may be
temporary pending our further evaluation. We may concentrate purchases with one or more suppliers to obtain lower prices, advertising support and/or services for the benefit of the CD Store network, or for any other reason that we deem appropriate. In that case, we may limit the number of suppliers with whom you may deal, designate sources that you must use (which might include or be limited to us or our affiliate), and/or refuse your request for another approved supplier of any applicable product or service.
If you desire the approval of other suppliers, you must submit to us a written request to approve the proposed supplier, together with the evidence of conformity with our standards and specifications as we may reasonably require. We may inspect and evaluate the supplier's facilities and business operations and test the item to be supplied, and you must pay all of our reasonable expenses. We will provide you our general criteria for approving suppliers at your request, but we may approve or disapprove new suppliers in our sole judgment. We will notify you of our approval or disapproval of a proposed supplier within a reasonable period of time (typically 30 days) after we receive the information we request. We may revoke our approval at any time if we determine, in our sole judgment, that the supplier no longer meets our standards. Upon receiving our notice, you must immediately stop purchasing from any disapproved supplier.
If you buy from a franchisee one of the CD Stores that CD Lease Operations subleases to the franchisee, and CD Lease Operations agrees to remain on the prime lease, it will sublease the Store to you under the Sublease. If you sign the PUD Addendum, you will acquire technology and order processing and related services from COW. There currently are no other goods or services for the Store that you must buy or lease from us or one of our affiliates or for which we or one of our affiliates is an approved supplier or the only approved supplier. Except for our affiliates, none of our officers owns any interest in any suppliers to the franchise system.
You must use an architect that we approve to design the Store and a general contractor that we approve to oversee the Store's development or relocation. You currently must acquire the Computer System only from our designated suppliers. You also must use a designated supplier to clean rugs and other non-standard items and an approved insurance broker to acquire insurance for the Store and its operations. If you are providing PUD Services, your customers will pay the credit card/payment processor whom COW periodically designates (the "Payment Processor") and acquire code tags from our designated supplier. Except as described in this Item, there currently are no goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate or comparable items related to establishing or operating the franchised business that you must buy from us, our affiliates, or designated or approved suppliers. All other products and services that you buy or lease for your Store, including any vehicles used for PUD Services or to deliver garments between a Plant Store and a Satellite Store, need to meet our standards and specifications.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–31)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, franchisees must purchase operating assets, other products, supplies, and services from suppliers who demonstrate the ability to meet Cd One Price Cleaners' standards and specifications. These standards apply to both the items supplied and the supplier's business operations. Approved suppliers must also possess adequate quality controls and the capacity to promptly and reliably supply the franchisee's needs. If required by Cd One Price Cleaners, these suppliers must be approved in the confidential operating manual or in writing. Franchisees must also adhere to the payment and other terms specified by the approved suppliers, including potential automatic debit arrangements. Operating Assets include fixtures, furnishings, dry cleaning equipment, auto-assembly system and Kiosk System, other equipment, Computer System, décor and signs that Cd One Price Cleaners periodically specifies.
Cd One Price Cleaners may modify the list of designated and approved suppliers periodically and may designate themselves or an affiliate as an approved supplier of certain products and services in the future. Cd One Price Cleaners can designate a single supplier for any products or services, or approve a supplier only for certain products or services, with such approval potentially being temporary pending further evaluation. The company may concentrate purchases with one or more suppliers to obtain lower prices, advertising support, or services for the benefit of the CD Store network. In such cases, Cd One Price Cleaners may limit the number of suppliers a franchisee can deal with, designate sources that franchisees must use (including themselves or an affiliate), and/or refuse a franchisee's request for another approved supplier.
If a franchisee desires approval of other suppliers, they must submit a written request to Cd One Price Cleaners, along with evidence of conformity with the company's standards and specifications. Cd One Price Cleaners may inspect and evaluate the supplier's facilities and business operations and test the items to be supplied, with the franchisee bearing all reasonable expenses for these evaluations. While Cd One Price Cleaners will provide general criteria for approving suppliers upon request, the company retains sole judgment in approving or disapproving new suppliers. Franchisees will be notified of the decision within a reasonable period, typically 30 days after Cd One Price Cleaners receives the requested information. Cd One Price Cleaners may revoke approval at any time if a supplier no longer meets their standards, and franchisees must immediately cease purchasing from any disapproved supplier upon notice.
Cd One Price Cleaners also issues and modifies standards and specifications based on their affiliates' experience in developing and operating CD Stores. These standards and specifications may impose minimum requirements for delivery, performance, reputation, prices, quality, design, and appearance. The standards and specifications are identified in the manual or other communications, and will be provided to approved suppliers as needed. Franchisees must use an architect and general contractor approved by Cd One Price Cleaners to design and oversee the store's development or relocation. Franchisees must acquire the Computer System from designated suppliers, use a designated supplier to clean rugs and other non-standard items, and use an approved insurance broker to acquire insurance for the store and its operations.