What is the duration of the renewal franchise term that Chem-Dry offers?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, CDI and Franchisee entered into the "Franchise Agreement, whereby Franchisee was granted the right to own and operate a Chem-Dry business within the Franchised Area;
WHEREAS, Franchisee desires to acquire a renewal franchise for an additional term of ten (10) years; and
WHEREAS, CDI is willing to grant a renewal franchise to Franchisee provided Franchisee meets the requirements of Section 12 of the Franchise Agreement, including but not limited to executing this Agreement concurrently with the execution of a new franchise agreement and payment of the current renewal fee to CDI.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee can acquire a renewal franchise for an additional term of ten years. However, this is contingent upon meeting the requirements outlined in Section 12 of the Franchise Agreement.
To secure a renewal, the franchisee must execute a new franchise agreement and pay the current renewal fee to Chem-Dry. This indicates that the renewal process is not automatic and involves a formal agreement and financial investment.
This ten-year renewal term provides an existing Chem-Dry franchisee with the opportunity to extend their business operations, provided they remain in good standing and are willing to reinvest in the franchise. Franchisees should carefully review Section 12 of the Franchise Agreement to fully understand the specific requirements and obligations for renewal.