What is the current fee Chem Dry charges for providing services that are not Approved Services?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ions |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| during the term of the Franchise Agreement with the first attendance occurring during the first three years of the agreement term. | |||
| Month-to Month Post Term Franchise Fee | Two times the then-current monthly 1 Franchise Fee | 10th day of month | Begins the 10th of the month following the expiration of your Franchise Agreement and continues each month you continue to operate the Business until you sign a successor Franchise Agreement, or you cease operating the Business. This fee must be paid via electronic funds transfer. |
| Administrative Fee | Then current fee which is presently $500 per transaction | As incurred | Due when you request or when your actions require us to amend the Franchise Agreement or change the d/b/a name of your Chem Dry franchise. |
| Fine for Improper Advertising | Then current fee which is presently $2,000, per violation1 | As incurred | Payable if you use any promotional materials which do not comply with CDI's guidelines. |
| Fine for use and/or possession of non-Chem-Dry Products | Then current fee which is presently $5,000, per violation1 | As incurred | Payable if you use or possess any non-Chem-Dry supplied or approved products in your Chem-Dry Business. |
| Fine for unapproved cleaning systems or equipment | Then current fee which is presently $5,000, per violation1 | As incurred | Payable if you use any cleaning process or equipment not approved by CDI; this includes improper mixing or application of approved cleaning solutions. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee may be charged a fine for offering services that are not approved. The current fee for offering services that are not approved is $5,000 per violation. This fee is payable if a Chem Dry franchisee offers services in their Chem-Dry business that have not been approved by the company.
This means that if a Chem Dry franchisee decides to expand their service offerings beyond what Chem Dry has explicitly approved, they could face a significant financial penalty. It is important for prospective franchisees to understand the scope of approved services and to adhere strictly to Chem Dry's guidelines to avoid incurring this fine.
This type of fine is not uncommon in franchising, as franchisors seek to maintain consistency and quality across all franchise locations. By limiting the services offered to only those that have been vetted and approved, Chem Dry aims to protect its brand reputation and ensure that customers receive a consistent level of service regardless of location. Franchisees should carefully review the list of approved services and seek clarification from Chem Dry if they are unsure whether a particular service is permitted.