Does a Chem-Dry franchisee have options to acquire additional franchises?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ys' 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.
You may not advertise, solicit, accept, or perform the Approved Services outside of the Franchised Area. If you accept or perform a job outside of your Franchised Area, CDI has the right to fine you
$5,000 per violation or terminate the Franchise Agreement. You may use other channels of distribution, such as the Internet, catalog sales, telemarketing or other direct marketing, to solicit sales only in your Franchised Area, and you may not provide Approved Services to any customer located outside of your Franchised Area.
Source: Item 12 — TERRITORY (FDD pages 45–47)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees do not have options or rights of first refusal to acquire additional franchises. However, a Chem-Dry franchisee may purchase additional franchises within their existing franchised area. This is contingent upon the franchisee being in compliance with their current franchise agreement and having fully realized the market potential of their current territory. They must also possess sufficient resources, including vans, equipment, and crew, to adequately perform the approved services within the franchised area.
If a Chem-Dry franchisee has already purchased all available franchises within their assigned area, the continuation of their franchised area is not dependent on achieving specific sales volumes or market penetration targets. However, if the population within the franchised area increases significantly, potentially accommodating additional franchises due to an increase in the 'Maximum Number' of franchises allowed, the franchisee's sales volume and market penetration may be considered when deciding whether to permit them to purchase additional franchises and maintain the exclusivity of their franchised area.
Chem-Dry also reserves the right to refuse to sell all of the franchises available for an Assigned Area to single franchisee or an affiliated group. The number of franchises which can operate as Chem-Dry Businesses in a Franchised Area is determined by dividing the current population of the area by 60,000. The nearest whole number to the quotient (referred to as "Maximum Number") is the number of franchises that CDI may grant in the area for operating and conducting a Chem-Dry business. The sum of franchises granted in the Franchised Area cannot exceed the Maximum Number.