Does Chem Dry have absolute discretion to withhold approval of any action by the franchisee that requires Chem Dry's approval?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees not to, without the prior written approval by CDI, offer or sell any type of service or offer, sell or use any product that is not authorized by CDI for the CHEM-DRY Business.
CDI may condition the offer and sale, or continuation of the offer and sale, of Additional Services and products in its sole discretion, and to require franchisees which offer and perform such Additional Services to be certified by successful completion of an additional training and/or the purchase of additional equipment and cleaning solutions.
CDI and FRANCHISEE may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or another effective date stated in the notice of waiver. Any waiver granted by CDI shall be without prejudice to any other rights CDI, or its affiliates, may have, and will be subject to continuing review by CDI and may be revoked, in CDI's sole discretion, at any time and for any reason, effective upon delivery to FRANCHISEE of ten (10) days prior written notice.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry retains considerable discretion regarding approvals for various franchisee actions. Specifically, franchisees must secure prior written approval from Chem Dry before offering or selling any service or product not already authorized for the Chem-Dry business. Chem Dry also maintains the right to modify the lists of required and approved services at any time.
Chem Dry may also conditionally approve or disapprove the offer and sale of additional services and products at its sole discretion. This includes the ability to mandate that franchisees complete additional training or purchase extra equipment and cleaning solutions to offer these additional services.
Furthermore, Chem Dry can unilaterally waive or reduce any obligation or restriction upon the franchisee, but any waiver granted is subject to continuing review and can be revoked at any time, for any reason, with ten days' prior written notice. This indicates that even if Chem Dry initially approves or waives a certain requirement, it retains the right to change its position. Chem Dry's discretion extends to various aspects of the franchise operation, giving them significant control over the franchisee's activities and offerings.