When is the $500 administration fee for the Chem-Dry COA nonrefundable?

According to Chem-Dry's 2024 Franchise Disclosure Document, a $500 administration fee for the Consolidated Office Agreement (COA) is generally nonrefundable. This fee applies when a franchisee is granted the privilege of headquartering all their franchises from a single office location, provided the COA is not signed in conjunction with the sale of a new Chem-Dry franchise. This means that if an existing Chem-Dry franchisee seeks to consolidate their multiple franchise locations under one office, they must pay the $500 fee, and this fee will not be returned to them under normal circumstances.

The COA itself is non-renewable and non-transferrable, expiring with the Franchise Agreement. Upon its expiration, a franchisee may be eligible to enter into a second COA, but this is not guaranteed and is subject to Chem-Dry's discretion. Any subsequent COAs will be based on the then-current terms and conditions and will require payment of the then-current fee, implying that the $500 fee (or whatever the prevailing fee is at that time) would be required again.

Chem-Dry may terminate the COA at any time with 60 days written notice to the franchisee, with or without cause. If the agreement is terminated, the franchisee must move all franchise operations to office locations within the designated franchised areas for each franchise within the timeframe indicated in Chem-Dry's notice. This condition underscores the importance of understanding the terms of the COA and the potential costs and logistical challenges associated with consolidating and then potentially de-consolidating office locations.