Does the Chem Dry FDD include financial statements for the franchise itself, or only its parent company?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
I received a Disclosure Document from Chem-Dry, Inc. dated as of March 29, 2024 that included the following Exhibits:
Signature of Officer Printed Name and Title If an entity - Name of entity: Date Received Date Received E. List of Franchisees Manual D. Table of Contents of Operating I. Franchisee Disclosure Questionnaire C. Business Note G. H. State Addenda to the FDD B. Franchise Agreement and Other Financial Statements with Guaranty of Agreements Performance A List of Agents/State Agencies F. List of Former Franchisees
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Item 23 includes a receipt acknowledging that the document contains "Financial Statements with Guaranty of Agreements". However, the FDD does not specify whether these financial statements pertain specifically to the Chem-Dry franchise itself or to its parent company, Chem-Dry, Inc.
Without further clarification, prospective franchisees should inquire directly with Chem-Dry about the nature and scope of the financial statements provided. Understanding whether the statements reflect the performance of the franchise system alone or are consolidated figures for the parent company is crucial for assessing the financial health and stability of the Chem-Dry franchise opportunity.
It is standard practice for franchisors to include audited financial statements in their FDDs, but the level of detail can vary. Some franchisors provide statements specific to the franchise operations, while others present consolidated financials for the entire company. Therefore, it is essential for potential franchisees to clarify this point during their due diligence process.