Besides existing franchisees, who else is eligible to acquire additional Chem-Dry businesses under the terms described in Chart B?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Chart B is for the acquisition of additional Chem-Dry Businesses by an existing Chem-Dry franchisee. These options are available to franchisees that are in compliance with their franchise agreements and current franchise entry standards, and to new franchisees purchasing a franchise in addition to their initial Chem-Dry franchise acquisition.
Prior to an Additional Franchise Acquisition, CDI reserves the right to require that you demonstrate to our satisfaction that you are developing your current Franchised Area(s) to the full market potential, have sufficient equipment and crew to manage additional franchises, and that you are in good standing with CDI. "Good standing" means you are not in default under all franchise agreements with CDI and its affiliates, and no events or conditions have occurred that would give CDI or an affiliate the right to terminate a franchise agreement. If we decide that you meet these requirements, we will consider whether to approve the additional franchise acquisition. You will be required to execute a release as a condition to purchasing the additional franchise (See Exhibit F of the Franchise Agreement).
Source: Item 5 — INITIAL FEES (FDD pages 15–19)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, Chart B outlines the fees for acquiring additional Chem-Dry franchises. Besides existing Chem-Dry franchisees, new franchisees who are purchasing a franchise in addition to their initial Chem-Dry franchise acquisition are also eligible to acquire additional Chem-Dry businesses under the terms described in Chart B.
To qualify for acquiring additional franchises, existing franchisees must be in compliance with their current franchise agreements and meet Chem-Dry's current franchise entry standards. Chem-Dry also requires that franchisees demonstrate they are developing their current franchised areas to their full market potential and have sufficient equipment and crew to manage additional franchises.
Chem-Dry also stipulates that franchisees must be in good standing, meaning they are not in default under any franchise agreements with Chem-Dry or its affiliates, and no conditions exist that would give Chem-Dry the right to terminate a franchise agreement. As a condition of purchasing an additional franchise, franchisees will be required to execute a release.