factual

From whom must a Chem-Dry franchisee purchase cleaning solutions?

Chem_Dry Franchise · 2024 FDD

Answer from 2024 FDD Document

can offer some of the Additional Services.

You must use only equipment, cleaning solutions, supplies, business forms, promotional materials and business services which have either been obtained from or approved by CDI in your Chem-Dry Business. You must purchase the Initial Package from CDI, the price of which is included in the Initial Fee. To protect the integrity of the Chem-Dry name and assure high quality cleaning results, you must purchase all cleaning solutions from CDI at the then current list price, plus applicable taxes. If you possess or use non-Chem-Dry cleaning solutions in your Chem-Dry Business, CDI will have the right to impose on you a fine of $5,000 per violation or terminate the Franchise Agreement. You are required to purchase a minimum of $3,244.50 (increased once each calendar year to reflect increases in the

Consumer Price Index as published by the U.S. Department of Labor or in a successor index we select) of cleaning solution per franchise from CDI each calendar year ("Minimum Purchase Amount"). If you choose to offer certain Additional Services, you may be required to purchase additional amounts of product (including a designated mix of products). You may purchase other equipment, products or supply items from CDI at the the

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)

What This Means (2024 FDD)

According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees are required to purchase all cleaning solutions from Chem-Dry, Inc. (CDI). This requirement is in place to protect the integrity of the Chem-Dry name and ensure high-quality cleaning results. The price for these cleaning solutions is the then-current list price, plus any applicable taxes.

Chem-Dry franchisees must purchase a minimum of $3,244.50 of cleaning solutions from CDI each calendar year. This amount is subject to an annual increase based on the Consumer Price Index published by the U.S. Department of Labor. If a franchisee offers additional services, they may be required to purchase additional amounts of product, including a designated mix of products.

Failure to comply with the requirement to purchase cleaning solutions from CDI can result in significant penalties. If a Chem-Dry franchisee possesses or uses non-Chem-Dry cleaning solutions in their business, CDI has the right to impose a fine of $5,000 per violation or even terminate the Franchise Agreement. This underscores the importance of adhering to the franchisor's requirements for sourcing cleaning solutions to maintain brand standards and avoid penalties.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.