Is a Chem-Dry operator required to have any ownership interest in the Chem-Dry Business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
You are not obligated to participate personally in the direct operation of your Chem-Dry Business although CDI recommends that you do so. You are responsible for the successful operation of the Chem-Dry Business and are directly responsible to us under the Franchise Agreement whether or not you participate in day-to-day operations. If you choose to use an operator to run the business, the operator must be disclosed to us and is obligated to complete CDI's Initial Training/New Buyer Training and other training program(s) successfully within 90 days of the start of their employment with your business. You remain obligated to complete New Buyer Training within 90 days after you sign the Franchise Agreement.
The operator is not required to have any ownership interest in the Chem-Dry Business. You must require the operator to sign an agreement in which the operator agrees not to divulge any trade secret or confidential or proprietary information, including the contents of the Manual, or to engage in or have any interest in any competitive business. You must pay for any additional training that CDI requires
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 50–51)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a Chem-Dry operator is not required to have any ownership interest in the Chem-Dry business. Chem-Dry recommends that the franchisee participate personally in the direct operation of their Chem-Dry Business. However, the franchisee is still responsible for the successful operation of the Chem-Dry Business and is directly responsible to Chem-Dry under the Franchise Agreement whether or not they participate in day-to-day operations.
If the franchisee chooses to use an operator to run the business, the operator must be disclosed to Chem-Dry and is obligated to complete Chem-Dry's Initial Training/New Buyer Training and other training program(s) successfully within 90 days of the start of their employment with the business. The franchisee remains obligated to complete New Buyer Training within 90 days after signing the Franchise Agreement.
The operator must sign an agreement agreeing not to divulge any trade secret or confidential or proprietary information, including the contents of the Manual, or to engage in or have any interest in any competitive business. The franchisee must pay for any additional training that Chem-Dry requires for an employee that Chem-Dry, in its sole discretion, deems unqualified because the employee cannot complete training successfully. The franchisee is not permitted to utilize independent contractors to provide services to Business customers and cannot subfranchise, sublicense or delegate their franchise rights.