Is a copy of the Guaranty of Performance included in the Chem Dry Franchise Disclosure Document?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
I received a Disclosure Document from Chem-Dry, Inc. dated as of March 29, 2024 that included the following Exhibits:
Signature of Officer Printed Name and Title If an entity - Name of entity: Date Received Date Received E. List of Franchisees Manual D. Table of Contents of Operating I. Franchisee Disclosure Questionnaire C. Business Note G. H. State Addenda to the FDD B. Franchise Agreement and Other Financial Statements with Guaranty of Agreements Performance A List of Agents/State Agencies F. List of Former Franchisees
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the receipt included in Item 23 indicates that the disclosure document includes financial statements with a Guaranty of Performance. This means that a separate document containing the guaranty is included as part of the exhibits to the FDD.
For a prospective Chem Dry franchisee, this suggests that certain financial obligations or performance standards may be guaranteed by either the franchisee or another party. The exact nature of the guaranty, such as who is providing the guarantee (e.g., the franchisee's owner, a related entity) and what specific obligations are covered (e.g., payment of fees, achieving certain performance metrics), would be detailed in the Guaranty of Performance document itself.
It is important for a potential Chem Dry franchisee to carefully review the Guaranty of Performance to understand the scope of the guarantee, the conditions under which it would be invoked, and the potential liabilities associated with it. Consulting with a legal and financial advisor is recommended to fully assess the implications of the guaranty before signing the franchise agreement.