What must a Chem-Dry franchisee do before selling or transferring a van?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to purchase or lease one (1) or more white cargo van(s) suitable for the purpose of transporting various equipment, supplies and materials needed to operate the BUSINESS and which otherwise meets CDI's System Standards in the Manual. The van(s) must be used for all cleaning jobs. FRANCHISEE agrees: (1) to maintain the condition and appearance of FRANCHISEE's van(s) according to the standards imposed by CDI from time to time and to maintain the condition of the equipment consistent with the image of a CHEM-DRY Business as a professionally operated service business; (2) that the van(s) shall not be used for any purpose other than the operation of the BUSINESS as described herein; (3) not to sell, donate, rent, lease or otherwise transfer any of the van(s) without first removing any and all signs, emblems, lettering and logos indicating an association with CHEM-DRY Businesses, and/or other Marks, from the van(s).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 51)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee must remove all Chem-Dry branding from the van before selling or transferring it. This includes any signs, emblems, lettering, and logos that indicate an association with Chem-Dry. This requirement ensures that the Chem-Dry brand is not misrepresented or diluted by vehicles no longer under the franchisor's control.
This stipulation is fairly standard in the franchise industry, as franchisors need to maintain consistent brand representation. By requiring the removal of branding, Chem-Dry protects its image and prevents potential confusion among customers who might associate the vehicle with the brand after it has been sold or transferred.
In addition to removing the branding, the FDD states that franchisees need to purchase or lease at least one white cargo van that meets Chem-Dry's system standards. The van must be used for all cleaning jobs and maintained according to Chem-Dry's standards. These requirements ensure that franchisees present a professional image and use appropriate vehicles for their services.