Under what conditions is the Cd One Price Cleaners management fee due?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management fee | Up to 8% of Gross Revenues, plus costs and expenses | As incurred | Due if we manage your Store upon abandonment, default, expiration or termination |
Source: Item 6 — Other Fees (FDD pages 13–20)
What This Means (2025 FDD)
According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, a franchisee will be required to pay a management fee if Cd One Price Cleaners manages the store. This fee is triggered upon events such as abandonment, default, expiration, or termination of the franchise agreement.
The management fee can be up to 8% of Gross Revenues, in addition to covering any costs and expenses incurred by Cd One Price Cleaners while managing the store. The fee is due as incurred, meaning it will be billed to the franchisee as Cd One Price Cleaners incurs the costs of managing the location.
This is a fairly standard practice in franchising. It is important for a prospective Cd One Price Cleaners franchisee to understand the circumstances that could lead to the franchisor taking over management of the store, and to budget accordingly for this potential expense. It is also important to understand what is included in 'costs and expenses'.