Can Chem Dry contact Chem Dry franchisees' customers and employees during inspections?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
To determine whether FRANCHISEE and the BUSINESS are complying with this Agreement and all System Standards, CDI and its designated agents or representatives may at all times and without prior notice to FRANCHISEE: (a) inspect FRANCHISEE's Operating Assets
and business vehicles; (b) inspect the BUSINESS' premises location; (c) observe FRANCHISEE and all employees in the performance of Approved Services and any other work performed for customers; (d) inspect any job performed by FRANCHISEE, including without limitation obtaining a sample of cleaning solution used; and (e) contact and interview customers, employees and former employees of FRANCHISEE. FRANCHISEE agrees to cooperate fully with CDI. If CDI exercises any of these rights, it will not interfere unreasonably with the BUSINESS'S operation. If, upon inspection or investigation, CDI finds that the quality of work done by FRANCHISEE does not meet System Standards or commercial work standards in the Franchised Area, then CDI may, as an alternative to termination of this Agreement, require FRANCHISEE, at its own expense, to take additional training, obtain an independent evaluation from a qualified inspector, including but limited to any costs associated with the cleaning service and evaluation fee, and to correct the quality of its work and services on each job where the quality of the work does not meet CDI's System Standards. CDI's inspections and evaluations may include use of a "Mystery Shopper" program from time to time throughout the term of this Agreement which may include surveys of, and evaluations by, current and previous customers, without notice to FRANCHISEE. If FRANCHISEE fails an evaluation by CDI or by a Mystery Shopper or if CDI receives a specific customer complaint, FRANCHISEE must pay the costs and expenses of subsequent evaluations performed by FRANCHISEE and subsequent Mystery Shopper visits, plus any applicable fines.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry can contact and interview franchisees' customers, employees, and former employees to determine compliance with the franchise agreement and system standards. This is part of Chem Dry's right to ensure that franchisees are maintaining the quality and standards of the Chem Dry brand.
This practice allows Chem Dry to gather direct feedback on the franchisee's performance and adherence to the established system standards. By contacting customers, Chem Dry can assess customer satisfaction and the quality of services provided. Contacting current and former employees provides Chem Dry with insights into the franchisee's operational practices and compliance with company policies.
Chem Dry states that while they have the right to contact customers and employees, they will not interfere unreasonably with the business's operation. Franchisees are expected to cooperate fully with Chem Dry during these inspections.
Chem Dry may also use a "Mystery Shopper" program, which includes surveys and evaluations by current and previous customers without notice to the franchisee. If a franchisee fails an evaluation or if Chem Dry receives a specific customer complaint, the franchisee may be required to pay the costs and expenses of subsequent evaluations and Mystery Shopper visits, plus any applicable fines.