Is the exception granted by Chem Dry under the Consolidated Office Agreement transferable?

According to Chem Dry's 2024 Franchise Disclosure Document, the exception granted under the Consolidated Office Agreement (COA) is explicitly non-transferable. This agreement allows a franchisee with multiple Chem Dry franchises in different areas to operate all franchises from a single office location, which is an exception to the standard requirement of having an office in each franchised area.

The document states that Chem Dry is willing to grant this exception on a "limited, non transferrable, and revocable basis." This means that if a franchisee sells their Chem Dry franchises, the new owner cannot assume the consolidated office arrangement. The exception is tied to the original franchisee and does not extend to subsequent owners.

This condition is significant for potential franchisees looking to acquire existing Chem Dry businesses that currently operate under a consolidated office agreement. The new franchisee would need to establish separate offices for each franchise or seek a new, independent COA from Chem Dry, which the franchisor may not grant. This could impact the operational costs and logistical planning for the incoming franchisee.