What dollar breakdown must be included in the Chem Dry purchase agreement?

According to Chem Dry's 2024 Franchise Disclosure Document, the purchase agreement between a franchisee and a transferee must include a specific dollar breakdown of the sale price. This breakdown must allocate the sale price to several categories. These categories include goodwill, covenant not to compete, van(s), cleaning equipment, cleaning supplies, and office equipment and supplies.

In addition to the dollar breakdown, the purchase agreement must also include a statement confirming that the franchisee has made full disclosure to the transferee. This statement should also indicate that both parties have agreed upon the disposition of all of the franchisee's outstanding obligations and accounts receivable. This requirement ensures transparency in the transfer process and helps the new franchisee understand the financial state of the business they are acquiring.

This level of detail in the purchase agreement is intended to protect both the buyer and seller during the transfer of a Chem Dry franchise. By specifying how the sale price is allocated, it can help prevent disputes over the value of different assets and ensure that all financial obligations are properly addressed. Prospective franchisees should carefully review these requirements and consult with legal and financial advisors to ensure they are fully compliant during any transfer process.