What expenses are Chem Dry franchisees responsible for in connection with attending the training program?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
HEM-DRY Business. If FRANCHISEE is a transferee, FRANCHISEE must complete the training required in this section 3.A. within ninety (90) days of FRANCHISEE'S execution of this Agreement by attending a training session in Logan, Utah or at another location designated by CDI.
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- FRANCHISEE is responsible for all compensation, benefits, taxes, insurance, travel expenses and living expenses which are incurred in connection with attending the training program. The Initial Package includes training tuition for two people to attend training. CDI may charge tuition for additional trainees and for training associated with the transfer of an existing franchise. The tuition amount as of the Effective Date is $75.00 per day per attendee.
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- If CDI determines, in its sole discretion, that FRANCHISEE failed to satisfactorily complete the training program, CDI shall have the right to require that FRANCHISEE attend the next initial training program at FRANCHISEE'S expense (including tuition charged by CDI and all compensation, benefits, taxes, insurance, travel and living expenses incurred), or that FRANCHISEE view CDI's web-based training or other media and pass the accompanying test(s). If FRANCHISEE'S performance in the additional training program is unsatisfactory or if FRANCHISEE fails to complete the training, FRANCHISEE'S Business Note signed in connection with this Agreement will be accelerated and immediately due and payable and CDI shall have the right to terminate this Agreement effective immediately.
B. ONGOING TRAINING
- FRANCHISEE is required to complete at least one (1) in-person training course per year and the online training. The initial training will fulfill the training requirement for the calendar year in which this Agreement is dated. In subsequent calendar years, you are required to complete at least one in-person training course per calendar year and various online or other electronic training modules or seminars as required for each authorized service the BUSINESS
offers. CDI may charge reasonable registration or similar fees for the training programs and/or to provide FRANCHISEE with the training materials necessary to fulfill FRANCHISEE's annual training obligations. FRANCHISEE is responsible for all compensation, benefits, taxes, insurance, travel and living expenses incurred in connection with FRANCHISEE'S or FRANCHISEE'S employees attending such courses. FRANCHISEE understands and agrees that any specific ongoing training or advice CDI provides does not create an obligation (whether by course or dealing or otherwise) to continue to provide such specific training or advice, all of which CDI may discontinue and/or modify from time to time. If FRANCHISEE fails to fulfill any portion of the annual training requirements, CDI shall have the right to impose on FRANCHISEE fine(s) of $500. FRANCHISEE shall pay such fine when invoiced.
- FRANCHISEE agrees to attend at least two conventions during the term of this Agreement and pay the convention fees for attending each convention charged by CDI. FRANCHISEE further agrees t
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees are responsible for specific expenses related to attending the initial and ongoing training programs. These expenses include compensation, benefits, taxes, insurance, travel expenses, and living expenses. For the initial training, the initial package covers the training tuition for two people. However, Chem Dry may charge tuition for additional trainees or for training associated with the transfer of an existing franchise; as of the effective date, this tuition is $75 per day per attendee. If Chem Dry determines that a franchisee has not satisfactorily completed the initial training program, the franchisee will be required to attend another initial training program at their own expense, which includes tuition and all associated expenses, or to view web-based training and pass the accompanying tests. Unsatisfactory performance or failure to complete the training can lead to acceleration of the Business Note and immediate termination of the agreement.
For ongoing training, franchisees must complete at least one in-person training course per year, as well as online training. Chem Dry may charge reasonable registration or similar fees for these training programs and/or for training materials. Franchisees are responsible for all compensation, benefits, taxes, insurance, travel, and living expenses incurred by themselves or their employees while attending these courses. Failure to fulfill the annual training requirements may result in fines of $500 per instance.
In addition to the training courses, Chem Dry franchisees must attend at least two conventions during the term of the agreement and pay the convention fees. They must attend at least one convention during the first three years of the agreement. Failure to attend a convention as required may result in a fine of $500. These financial responsibilities underscore the importance of budgeting for training and development as part of the overall cost of operating a Chem Dry franchise.