What criteria does Chem Dry use to evaluate a proposed supplier?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ry Business.
Approval of other suppliers
CDI may approve other suppliers of equipment, products, supply items or business services who meet CDI's specifications. CDI issues and modifies standards and specifications to franchisees by including them in the Manual (and revisions to the Manual) or otherwise in writing. If you propose to purchase or lease any equipment, product, supply item or business service from another supplier and/or utilize any equipment, product, supply item or business service from another supplier which is not then approved by CDI, you will first notify CDI and, upon request, furnish to CDI specifications, photographs, drawings and/or other information or items sufficient to afford CDI a reasonable opportunity to determine whether such equipment, product or supply item or supplier complies with our specifications and standards. We evaluate a supplier on the reliability of its product and service, product support, price and responsiveness. We do not charge you a fee to approve a product or a supplier and we typically will notify you of our approval or disapproval within 30 days. We do not issue our specifications or standards for evaluating and approving suppliers. You may only use equipment or product or supply items which have been approved by us in writing. If you use any cleaning process or equipment not approved by CDI (which includes improper mixing or application of authorized products), CDI will have the right to impose on you a fine of up to $5,000 per
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if a franchisee proposes using a supplier not already approved by Chem Dry, the franchisee must notify Chem Dry and provide sufficient information for Chem Dry to evaluate the supplier's compliance with their standards. Chem Dry assesses potential suppliers based on the reliability of their product and service, the level of product support offered, the price of their goods or services, and their responsiveness.
Chem Dry does not charge a fee to franchisees for the evaluation and approval of a new supplier or product. The FDD states that Chem Dry typically notifies the franchisee of their decision, whether approval or disapproval, within 30 days of receiving the required information. However, Chem Dry does not disclose the specific standards or specifications used in their evaluation process.
It is important to note that franchisees are only permitted to use equipment, products, and supplies that have been explicitly approved by Chem Dry in writing. Using any unapproved cleaning processes or equipment, including improper mixing or application of authorized products, can result in a fine of up to $5,000 per violation or even termination of the Franchise Agreement. This highlights the importance of adhering to Chem Dry's approved supplier list and seeking approval before using alternative sources.