CRDN or Certified Restoration DryCleaning Network
CRDN offers restoration drycleaning services for damaged clothing and textiles. Known for specialized cleaning techniques, CRDN franchises require an initial investment of $84,650 to $538,850 and operate in the drycleaning and restoration industry.
CRDN or Certified Restoration DryCleaning Network franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a CRDN franchised business is between $84,650 and $538,850, which includes $45,600 to $64,600 that must be paid to the franchisor or its affiliates. [p.2]
What is the initial franchise fee?
The initial franchise fee includes the franchise license fee, the territory fee, and the initial supplies package fee. According to [p.94], these components are deferred and recognized over a ten-year period from the date the agreement is signed. The Initial License Fee and TPP Development Fee, which are part of the initial franchise fee, amount to $5,700 for an initial CRDN franchise purchase ([p.180]).
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is assessed based on the franchisee's sales performance. If a franchisee does not meet the Minimum Monthly Gross Sales Requirement for any two or more consecutive months, they must pay a Minimum Royalty Fee via EFT [p.47, p.116]. There is no specified advertising fee in the provided excerpts; CRDN has the right to advertise using various media but there is no obligation to maintain an advertising program or spend money on it [p.37].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is effective for ten years from the date it is signed [p.94]. Generally, a franchisee may renew its agreement upon expiration, subject to approval and payment of a renewal fee [p.89].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.225]. Additionally, the franchisor must provide written notice and a reasonable opportunity to cure any failure to comply with lawful provisions of the franchise agreement, which in no event need be more than 30 days [p.6(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD mentions that a prospective franchisee must have sufficient equity capital to develop the franchised business [p.152], but it does not provide specific details on net worth or liquid capital requirements. Additionally, the document indicates that financial data including bank statements and financial statements will be reviewed upon submission of the Confidential Questionnaire Information form [p.90], suggesting a need for adequate working capital, but exact figures are not provided.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, other distribution channels, or competitive brands controlled by the company [p.44].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training sessions often conducted at their home office or affiliate facilities, with some online/virtual options available [p.40]. They also offer ongoing support including assistance with sales efforts, operation management, software support (xRM and CRM), data processing for program jobs, and brand promotion [p.89]. Training may be provided by Lynn Lineberger or other staff members with relevant experience [p.41].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but generally does not make financial performance representations [p.68]. However, they do include historical sales and job information for CRDN franchises in the FDD [p.60]. If you receive any other financial performance information or projections, you should report it to the franchisor's management as well as relevant regulatory agencies [p.68].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase an Initial Package of items from the franchisor in connection with launching your Franchised Business, though the franchisor does not produce or supply these items themselves. The franchisor may sell CRDN-identified products through alternative channels, including television and internet. As for selling restrictions, you must obtain a license through the franchisor for their proprietary software and applications. This isn't specified in the excerpts regarding where to buy supplies beyond the Initial Package.