factual

What equipment must the Chem Dry transferee purchase or obtain?

Chem_Dry Franchise · 2024 FDD

Answer from 2024 FDD Document

  • v. the transferee purchases or obtains all equipment CDI then requires to operate a CHEM-DRY Businesses, if not included in the transaction (including, without limitation, proprietary equipment related to the Franchise); and

Source: Item 23 — Receipts (FDD pages 68–264)

What This Means (2024 FDD)

According to Chem Dry's 2024 Franchise Disclosure Document, a transferee must purchase or obtain all equipment that Chem Dry requires to operate a Chem-Dry business if it is not already included in the transaction. This includes proprietary equipment related to the franchise.

Chem Dry requires franchisees to purchase or lease all required equipment, supplies, products, vehicles (including at least one white cargo van), and signs (collectively referred to as "Operating Assets") for the business. Franchisees must buy or lease at least one white cargo van suitable for transporting equipment, supplies, and materials. The van must meet Chem Dry's system standards as described in the manual and be used for all cleaning jobs.

Chem Dry also specifies that the purchase agreement between the franchisee and the transferee must include a dollar breakdown of the sale price allocated to cleaning equipment, among other items. This ensures transparency in the transaction and helps the transferee understand the value of the assets they are acquiring. The equipment can only be used with Chem-Dry authorized cleaning solutions and consistent with all mixing, application, and usage procedures.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.