What are the conditions that a Chem Dry franchisee must meet before opening their business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to do the following, at FRANCHISEE's own expense, to develop the BUSINESS:
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- secure all financing required to develop and operate the BUSINESS;
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- obtain and maintain in good standing all required permits and licenses necessary to operate the BUSINESS, and comply with all applicable laws relating to the operation of the BUSINESS;
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- purchase or lease, and install, all required equipment, supplies, products, vehicles (including at least one (1) white cargo van) and signs (collectively, "Operating Assets") for the BUSINESS; and
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- complete all required training in a timely manner, as more fully described in Section 3 below.
Unless you are an existing franchisee, CDI shall furnish an initial training program on the operation of a CHEM-DRY Business which FRANCHISEE is required to complete to CDI's satisfaction prior to FRANCHISEE'S commencement of BUSINESS operations. CDI agrees to provide FRANCHISEE with initial training on how to (1) mix and apply cleaning solutions, use equipment in cleaning the work product and performing the services required for a CHEM-DRY business under normal working conditions; (2) compute estimates; (3) solicit and maintain business; and (4) replace inventory and otherwise enter into and conduct a CHEM-DRY Business. If FRANCHISEE purchases a new franchise from CDI, FRANCHISEE will be required to attend a training session Logan, Utah, or at another location designated by CDI prior to operating the CHEM-DRY Business. If FRANCHISEE is a transferee, FRANCHISEE must complete the training required in this section 3.A. within ninety (90) days of FRANCHISEE'S execution of this Agreement by attending a training session in Logan, Utah or at another location designated by CDI.
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- If CDI determines, in its sole discretion, that FRANCHISEE failed to satisfactorily complete the training program, CDI shall have the right to require that FRANCHISEE attend the next initial training program at FRANCHISEE'S expense (including tuition charged by CDI and all compensation, benefits, taxes, insurance, travel and living expenses incurred), or that FRANCHISEE view CDI's web-based training or other media and pass the accompanying test(s). If FRANCHISEE'S performance in the additional training program is unsatisfactory or if FRANCHISEE fails to complete the training, FRANCHISEE'S Business Note signed in connection with this Agreement will be accelerated and immediately due and payable and CDI shall have the right to terminate this Agreement effective immediately.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee must meet several conditions before commencing business operations. The franchisee is responsible for securing all necessary financing to develop and operate the Chem Dry business. This includes obtaining and maintaining all required permits and licenses, ensuring compliance with all applicable laws related to the business's operation.
Additionally, the franchisee must purchase or lease and install all required operating assets. These assets include equipment, supplies, products, vehicles (specifically, at least one white cargo van), and signs that meet Chem Dry's standards. The franchisee must also complete all required training to Chem Dry's satisfaction before starting business operations. This training covers essential aspects such as mixing and applying cleaning solutions, using equipment, computing estimates, soliciting and maintaining business, and managing inventory.
Furthermore, if the franchisee is purchasing a new franchise, they are required to attend a training session in Logan, Utah, or another designated location before operating the Chem Dry business. Transferees must complete the required training within 90 days of executing the franchise agreement. Chem Dry retains the right to require the franchisee to attend additional training programs at the franchisee's expense if the initial training is not satisfactorily completed. Failure to satisfactorily complete the training program can result in acceleration of the Business Note and immediate termination of the franchise agreement.