Is the Chem-Dry Certificate of Accommodation (COA) renewable?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
nts, on a limited, non transferrable, and revocable basis.
NOW, THEREFORE, in consideration of the mutual promises made herein, CDI and Franchisee agree to be bound by the following terms and conditions
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- Unless this COA is signed in conjunction with the sale of a new Chem-Dry franchise, Franchisee agrees to pay CDI a nonrefundable administration fee of $500.00 as consideration for the privilege of headquartering all Franchises from a single office location.
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- This COA will expire with the Franchise Agreement, and is non renewable and non-transferrable.
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- Pursuant to section 11 of the Agreements, Franchisee agrees to maintain and preserve full and accurate books for each franchise headquartered at the single office location.
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- Upon expiration of this COA, Franchisee may be eligible to enter into a second COA with CDI so long as Franchisee notifies CDI of its desire to do so at least sixty (60) days prior to the expiration of this COA.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the Certificate of Accommodation (COA) is not automatically renewable. The COA allows a franchisee with multiple Chem-Dry franchises to operate all of them from a single office location, which is an exception to the standard requirement of having an office in each franchised area. The COA expires along with the Franchise Agreement and is non-transferrable.
However, a Chem-Dry franchisee may be eligible to enter into a second COA upon expiration of the initial one, provided they notify Chem-Dry at least sixty (60) days before the expiration. Any subsequent COAs will be subject to the then-current terms and conditions and will require payment of the then-current fee. Chem-Dry has no obligation to enter into subsequent COAs and may refuse to do so at its sole discretion.
If a new COA is not agreed upon, the Chem-Dry franchisee must move all franchise operations to office locations within the designated franchised areas for each franchise by the expiration date of the original COA. Failure to do so constitutes a material breach of the Franchise Agreement. Chem-Dry also retains the right to terminate the COA at any time with sixty (60) days written notice, with or without cause, requiring the franchisee to relocate operations accordingly.