What agreement is the Chem Dry Equipment Purchase Schedule subject to?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Subject to Agreement. This Schedule is issued under and is subject to the Equipment Sales and Security Agreement to which it relates in all respects. In the event the Equipment purchased pursuant to this Schedule is not proprietary to CDI nor bears any insignia or color schemes associated with the Chem-Dry® brand, the requirements of paragraph 6 of the Equipment Sales and Security Agreement shall be waived for the Equipment.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Equipment Purchase Schedule is subject to the Equipment Sales and Security Agreement. This means that the terms and conditions outlined in the Equipment Sales and Security Agreement govern the Equipment Purchase Schedule.
Specifically, the Equipment Sales and Security Agreement dictates the obligations, responsibilities, and rights of both Chem Dry and the franchisee concerning the purchase, financing (if applicable), and security of the equipment. This agreement ensures that Chem Dry retains a security interest in the equipment if they finance any portion of it, protecting their investment until the franchisee fulfills their payment obligations.
Furthermore, if the equipment purchased is not proprietary to Chem Dry or does not bear any Chem Dry branding, the requirements of paragraph 6 of the Equipment Sales and Security Agreement may be waived. This suggests that certain restrictions or obligations related to proprietary equipment might not apply to non-branded or non-proprietary items purchased under the schedule.