Is Chem-Dry required to conduct advertising for the franchise system?

According to Chem-Dry's 2024 Franchise Disclosure Document, Chem-Dry is not required to conduct advertising for the franchise system. The FDD states that the franchisee is responsible for all advertising and promotion of their Chem-Dry Business. Chem-Dry does not currently administer any advertising fund or any local or regional advertising cooperative in which franchisees must or may participate. However, Chem-Dry does reserve the right to establish a national advertising fund in the future. There is also no advertising council composed of franchisees that advises Chem-Dry on advertising policies.

While Chem-Dry is not obligated to conduct advertising, franchisees must use advertising, promotional, and marketing materials that Chem-Dry has prepared or approved. Franchisees must also follow Chem-Dry's standards and specifications regarding the use of social media. If a franchisee uses any advertising or promotional materials that do not comply with Chem-Dry's guidelines, they will be subject to a fine of $2,000 per violation or termination of the Franchise Agreement.

During the initial phase after training, franchisees are expected to invest in local advertising. Specifically, franchisees are expected to spend $1,000 per month on local advertising beginning the month after completing New Buyer Training. Following this, for the subsequent eight months (the "Initial Marketing Period"), franchisees must spend at least $2,000 each month in local marketing, with $1,000 dedicated to digital marketing. After the Initial Marketing Period, franchisees are expected to spend at least 15% of their Gross Revenue with the vendor of their choosing to advertise and market the Chem-Dry Business in their Franchised Area.