When does a Chem Dry customer take ownership of equipment?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ipment conforms to the requirements set by CDI under the Franchise Agreement. CDI offers other no warranty and assigns to Franchisee any and all rights to any express or implied warranty of each Equipment manufacturer. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES ON THE EQUIPMENT OFFERED, GIVEN OR PROVIDED BY CDI INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
EQUIPMENT USAGE. Franchisee agrees not to use the Equipment in any business or manner other than in the conduct of the Business pursuant to the Franchise Agreement. Franchisee acknowledges that the Equipment is proprietary to the Chem-Dry fran
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
The 2024 Chem Dry Franchise Disclosure Document does not specify when a Chem Dry customer takes ownership of equipment. The document outlines the terms and conditions for the franchisee's equipment, including its purchase, usage, and transfer of ownership.
The FDD details that the franchisee purchases equipment from Chem Dry and agrees to use it solely for operating the Chem Dry business. The franchisee cannot sell, lease, or rent the equipment to any other party without Chem Dry's permission. Chem Dry retains the right to repurchase the equipment under certain conditions, such as a breach of the Franchise Agreement, for a nominal price of $10.00.
Upon termination or expiration of the franchise agreement, the franchisee must cooperate with Chem Dry to arrange for the equipment's shipment to a location designated by Chem Dry, with Chem Dry covering the freight costs. Alternatively, the franchisee can sell the equipment to another Chem Dry franchisee with Chem Dry's consent. The FDD includes an Equipment Sales and Security Agreement as Exhibit B, further detailing the terms of equipment purchase and usage. However, the FDD does not discuss customers taking ownership of equipment.