Does Chem-Dry reserve the right to modify or discontinue any referral program at its discretion?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that CDI and its affiliates reserve the right to integrate their business and operations in the future and use common facilities, technology or platforms to provide training, business information systems, supply chain and other support elements. FRANCHISEE acknowledges that the referral of business between FRANCHISEE and CDI's affiliates and their franchisees would be mutually beneficial. Therefore, in the event CDI and/or its affiliates establish a referral program, FRANCHISEE agrees to notify CDI of any potential users of the affiliate services known by FRANCHISEE in accordance with terms, conditions, and procedures for such referrals established by CDI and its affiliates from time to time in the Manual or otherwise in writing. CDI reserves the right to manage, administer, establish and enforce or waive rules and policies, modify and discontinue any such referral program in its sole discretion.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, Chem-Dry has the authority to manage, administer, establish, and enforce or waive rules and policies related to any referral program. Chem-Dry also reserves the right to modify or discontinue any such referral program at its sole discretion.
This means that while Chem-Dry may establish a referral program that could benefit franchisees by generating leads or business, the company is not obligated to maintain the program. Chem-Dry can change the rules, policies, or even terminate the program entirely without needing the franchisees' consent.
For a prospective Chem-Dry franchisee, this indicates that any potential benefits from a referral program should not be considered a guaranteed or permanent aspect of the franchise system. Franchisees should be prepared for the possibility that the referral program could change or end, and they should not rely solely on it for their business generation. It would be prudent to inquire about the typical lifespan and any historical changes to Chem-Dry's referral programs to better assess their potential value and stability.