Who arranges for the shipment of the equipment to the Chem-Dry franchisee?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
SHIPMENT, TITLE & RISK OF LOSS. CDI will arrange for shipment of the Equipment on the Schedule to Franchisee. Risk of loss and title to the Equipment transfers to Franchisee upon delivery, subject to any security interest of CDI retained under this Agreement. Franchisee shall inspect each shipment promptly upon receipt and will be deemed to accept the Equipment as conforming to the Schedule unless any defects or deficiencies are noted to CDI within 2 business days after delivery. Franchisee agrees, if no defects or deficiencies are reported within this time period, all sales are final.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, CDI (Chem-Dry, Inc.) will arrange for the shipment of equipment to the franchisee. Upon delivery, the risk of loss and title to the equipment transfer to the franchisee, though CDI retains a security interest if they financed any portion of the equipment purchase.
It is the franchisee's responsibility to inspect the equipment promptly upon receipt. Any defects or deficiencies must be reported to CDI within two business days after delivery. Failure to report issues within this timeframe means the franchisee accepts the equipment as conforming to the agreed-upon schedule, and all sales are considered final.
This arrangement is typical in franchising, where the franchisor often handles initial equipment procurement and shipment to ensure brand consistency and quality control. However, the franchisee bears the responsibility for inspecting the shipment and reporting any issues promptly to avoid disputes later on.