From where must a Chem-Dry franchisee operate their business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
and no franchise will be terminated solely as a result of a decrease in the Maximum Number.
You must operate and conduct your Business from a single location within the Franchised Area from which you may operate as many crews, teams, sales forces and vans as you desire. You may relocate your business anywhere you choose within your Franchised Area if you provide us with at least 10 days' prior written notice. Your Business office must be able to receive and store shipments.
You have no options, rights of first refusal or similar rights to acquire additional franchises. You may purchase additional franchises within the Franchised Area, although you are not granted a right of first refusal to do so. If you wish to purchase an additional franchise, you must be in compliance with your current Franchised Area, have achieved what we determine to be the full market potential of the current Franchised Area, and have sufficient vans, equipment and crew to perform the Approved Services you have undertaken within the Franchised Area. If you have purchased all of the franchises allocated to a given franchised area, the continuation of your Franchised Area is not dependent upon the achievement of a certain sales volume, market penetration or other contingency. However, if the area grows sufficiently in population to accommodate one or more additional franchises because the Maximum Number has increased, your sales volume and market penetration may be taken into consideration in deciding whether to permit you to purchase such additional franchise(s) and maintain the exclusivity of the Franchised Area.
Source: Item 12 — TERRITORY (FDD pages 45–47)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee must operate their business from a single location within their assigned Franchised Area. This location serves as the base for managing crews, sales teams, and vans. Chem-Dry allows franchisees to relocate their business within the Franchised Area, provided they give the company at least 10 days' prior written notice. The business office must be equipped to receive and store shipments.
The Franchised Area itself is determined by Chem-Dry based on factors such as population, population density, geographical terrain, and market potential. Typically, a Franchised Area has a population of at least 60,000, but in rural areas, it may be as small as 5,000. The number of Chem-Dry franchises permitted in an area is calculated by dividing the area's population by 60,000, with the resulting whole number representing the maximum number of franchises Chem-Dry may grant in that area.
Chem-Dry franchisees are restricted from advertising, soliciting, accepting, or performing services outside of their Franchised Area. Violations of this rule can result in a fine of $5,000 per instance or even termination of the Franchise Agreement. While franchisees can use various marketing channels like the Internet or catalogs, these efforts must be confined to their designated territory. Chem-Dry and its affiliates also reserve the right to market to customers within the franchisee's area without compensation to the franchisee.