What is the Chem-Dry franchisee's responsibility regarding inspecting equipment shipments upon receipt?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
SHIPMENT, TITLE & RISK OF LOSS. CDI will arrange for shipment of the Equipment on the Schedule to Franchisee. Risk of loss and title to the Equipment transfers to Franchisee upon delivery, subject to any security interest of CDI retained under this Agreement. Franchisee shall inspect each shipment promptly upon receipt and will be deemed to accept the Equipment as conforming to the Schedule unless any defects or deficiencies are noted to CDI within 2 business days after delivery. Franchisee agrees, if no defects or deficiencies are reported within this time period, all sales are final.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee is required to inspect equipment shipments promptly upon receipt. The franchisee is deemed to accept the equipment as conforming to the order unless any defects or deficiencies are reported to Chem-Dry within 2 business days after delivery. If no defects or deficiencies are reported within this timeframe, all sales are considered final.
This requirement is significant because it places the onus on the franchisee to carefully and quickly assess the condition of the delivered equipment. Failing to report any issues within the 2-day window means the franchisee accepts the equipment as-is, potentially bearing the cost of any unreported damages or missing items. This short reporting window underscores the importance of immediate attention to deliveries.
Franchisees should establish a clear process for inspecting deliveries, ensuring that staff are trained to identify potential defects or shortages. Documenting the inspection with photos or videos can provide evidence if discrepancies are found. This proactive approach can help protect the franchisee's investment and ensure they receive the equipment they paid for in good working order. It is also advisable to confirm with Chem-Dry the exact procedure for reporting defects to ensure compliance with their requirements.