According to the Chem Dry franchise agreement, how can the agreement be modified?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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| FRANCHISEE | CHEM-DRY, INC. |
|---|---|
| By: | |
| Title: | |
| Date: |
VIRGINIA
This Addendum relates to franchises sold in the state of Virginia and is intended to comply with Virginia statutes and regulations. In consideration of the execution of the Franchise Agreement, Chem-Dry, Inc. ("CDI") and Franchisee agree to amend the Franchise Agreement as follows:
- Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause", as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
| FRANCHISEE | CHEM-DRY, INC. |
|---|---|
| By: | |
| Title: | |
| Date: |
WASHINGTON
The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, the franchise agreement can be modified through addendums, particularly to comply with state-specific laws and regulations. For instance, for franchises sold in Virginia, Chem Dry and the franchisee can agree to amend the Franchise Agreement to comply with the Virginia Retail Franchising Act, especially concerning the grounds for termination. Similarly, for franchises in New York, the agreement can be modified to ensure compliance with New York statutes and regulations, such as those related to non-waiver provisions under the General Business Law. These modifications are formalized through addendums that are incorporated into the franchise agreement.
Chem Dry's approach to modifications ensures that the franchise agreement adheres to the legal requirements of different states, providing franchisees with certain protections and rights as mandated by local laws. This is particularly evident in the clauses addressing termination rights and waiver provisions, where state laws can override or supplement the original terms of the franchise agreement. The addendums serve to clarify and adjust the agreement to align with these specific legal requirements.
Furthermore, the Chem Dry FDD includes exhibits such as release agreements and software license agreements that act as modifications or supplements to the main franchise agreement. These exhibits outline specific terms and conditions related to additional franchises or the use of Chem Dry's online software services. Franchisees must agree to these additional agreements, indicating that the initial franchise agreement can be expanded or modified through these supplementary documents.
However, the Chem Dry franchise agreement stipulates that any attempts to modify or amend the terms of a lease without the prior written consent of Chem Dry are considered null and void. This indicates that while certain aspects of the franchise agreement can be modified through addendums and exhibits, franchisees do not have the unilateral authority to alter key operational agreements like the lease without Chem Dry's approval. This ensures that Chem Dry maintains control over critical aspects of the franchise's operation and location.