What is the condition for CDI to consent to the Chem Dry franchisee's grant of a security interest in the Equipment?

According to the 2024 Chem Dry Franchise Disclosure Document, a Chem Dry franchisee must arrange for the sale of the equipment to another Chem Dry franchisee with the consent of CDI in order to transfer ownership of equipment.

This condition ensures that the equipment remains within the Chem Dry franchise network and continues to be used in accordance with the brand's standards. It also allows Chem Dry to maintain control over its proprietary equipment and prevent it from being used in competing businesses.

For a prospective franchisee, this means that if they wish to sell their Chem Dry business, they must first seek approval from CDI for the transfer of the equipment to the new franchisee. This may involve providing information about the buyer and ensuring that they meet CDI's requirements for franchisees. If the franchisee does not arrange for the sale of the equipment to another Chem Dry franchisee, they will be required to cooperate with CDI to allow CDI to arrange for shipment of the Equipment to a location designated by CDI, with CDI paying the cost of freight for such shipment.