Is the Chem-Dry COA renewable or transferable?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
requires Franchisee to establish an office location within each franchised area and to operate the Franchises from each office location;
WHEREAS, Franchisee desires to establish only one office located in one of its franchised areas and to operate all of the Franchises from that single office location; and
WHEREAS, CDI is willing to grant an exception to the office location requirement in the Agreements, 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. Any subsequent COAs will be upon then current terms and conditions and will require payment of the then current fee. Upon expiration of this COA and if CDI does not enter into a new COA with Franchisee, Franchisee will have until the expiration date of this COA to move all franchise operations to office locations within the designated franchised areas for each Franchise. Failure to do so within the timeframe will be a material breach of the Agreement for that Franchise. Franchisee acknowledges and agrees CDI has no obligation to enter into subsequent COAs with Franchisee and that doing so will be at CDI's sole discretion.
tered into by CDI solely as an accommodation to Franchisee and CDI may terminate this COA, with or without cause, upon sixty (60) days written notice to Franchisee. In the event this COA is terminated, Franchisee agrees to all franchise operations to office locations wi
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the Consolidated Office Agreement (COA) is explicitly non-renewable and non-transferable. This agreement 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 concurrently with the Franchise Agreement. However, a franchisee may be eligible to enter into a second COA with Chem-Dry, provided they notify Chem-Dry of their desire to do so at least sixty (60) days before the expiration of the current COA. Any subsequent COAs will be subject to the then-current terms and conditions and will require payment of the then-current fee.
Chem-Dry retains the discretion to decide whether to enter into subsequent COAs with a franchisee. If a new COA is not agreed upon, the franchisee must move all franchise operations to office locations within the designated franchised areas for each franchise by the expiration date of the existing COA. Failure to comply constitutes a material breach of the Franchise Agreement. Additionally, Chem-Dry can terminate the COA at any time with sixty (60) days written notice, with or without cause, requiring the franchisee to relocate operations accordingly.