Can a Chem-Dry franchisee service national accounts within their Franchised Area?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ess. The sum of franchises granted in the Franchised Area cannot exceed the Maximum Number. We, another franchisee or a third party designated by CDI may service national accounts in your Franchised Area if you elect not to service a national account or if a national account elects not to do business with you. The Franchised Area will be determined by CDI based on population, population density, geographical terrain and market potential.
Source: Item 12 — TERRITORY (FDD pages 45–47)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees may have the opportunity to service national accounts within their assigned territory. Chem-Dry, however, retains the right for itself, another franchisee, or a third party designated by Chem-Dry to service national accounts in a franchisee's territory under specific circumstances. This can occur if the franchisee elects not to service a national account or if a national account chooses not to do business with the franchisee.
This arrangement means that while a Chem-Dry franchisee operates within a non-exclusive territory, they may encounter competition for national accounts from various sources. It's important to note that Chem-Dry's right to service national accounts (or designate others) within a franchisee's territory is not absolute but depends on the franchisee's willingness and the national account's preference.
Chem-Dry also retains the right to conduct national account programs, which may involve offering and selling approved services to customers both inside and outside the franchisee's designated area. This implies that Chem-Dry can directly engage with national accounts, potentially bypassing individual franchisees in certain situations. Prospective franchisees should consider how these national account dynamics might affect their business and revenue projections.