What is CDI responsible for regarding billings and collections from national accounts for Chem-Dry franchisees?

According to Chem-Dry's 2024 Franchise Disclosure Document, CDI (presumably Chem-Dry, Inc.) is responsible for all billings to and collections from national accounts. After collecting payments from these national accounts, Chem-Dry will remit the payments to the franchisee who serviced the account. However, Chem-Dry deducts a handling and processing fee, which ranges from 15% to 25% of the amount collected. The specific percentage depends on the terms of the national account. Chem-Dry also deducts any payments for state sales or other taxes they are required to pay.

This arrangement means that while Chem-Dry franchisees benefit from national account leads and billing services, they will not receive the full amount billed to the customer. The 15%-25% fee covers Chem-Dry's administrative costs and the services they provide in managing these accounts. Franchisees need to factor this fee into their pricing and profitability calculations when deciding whether to participate in national accounts programs.

Chem-Dry may require franchisees to participate in promotional and national accounts programs, but a franchisee can request to be relieved of this responsibility. However, the franchisee must provide a written request with a clear reason for opting out, and CDI must agree to the request. Participation in national accounts may also require the franchisee to complete an approval process required by the national account entity. A national account may also elect not to do business with the franchisee, or CDI could determine the franchisee may no longer service a national account. In any of these events, CDI or a third party may provide the necessary services.

It is also important to note that the franchisee is responsible for all customer complaints resulting from work performed on National Accounts. If Chem-Dry is required to resolve any customer service issues for the franchisee's Chem-Dry Business, the franchisee will be required to reimburse Chem-Dry for any expenses, including refunds or legal fees, incurred in resolving the customer issue.