What fees and training programs must a Chem Dry transferee complete?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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Subject to FRANCHISEE'S compliance with these conditions, FRANCHISEE agrees to commence operation of the BUSINESS no later than ninety (90) days after the effective date of this Agreement.
3. TRAINING AND GUIDANCE
A. INITIAL AND NEW BUYER TRAINING
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- Unless you are an existing franchisee, CDI shall furnish an initial training program on the operation of a CHEM-DRY Business which FRANCHISEE is required to complete to CDI's satisfaction prior to FRANCHISEE'S commencement of BUSINESS operations. CDI agrees to provide FRANCHISEE with initial training on how to (1) mix and apply cleaning solutions, use equipment in cleaning the work product and performing the services required for a CHEM-DRY business under normal working conditions; (2) compute estimates; (3) solicit and maintain business; and (4) replace inventory and otherwise enter into and conduct a CHEM-DRY Business. If FRANCHISEE purchases a new franchise from CDI, FRANCHISEE will be required to attend a training session Logan, Utah, or at another location designated by CDI prior to operating the CHEM-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.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, a Chem Dry franchisee who is a transferee must complete the training required in section 3.A. within 90 days of executing the franchise agreement. This training involves attending a session in Logan, Utah, or another location designated by Chem Dry.
In addition to training, the transferee must pay Chem Dry a transfer fee, the amount of which is set forth on the Summary Page of the Franchise Agreement. The transfer fee is due upon Chem Dry's preparation of the required transfer documentation. The transferee must also assume in writing all of the existing franchisee's obligations connected to the franchise agreement. The transferee must also purchase or obtain all equipment Chem Dry requires to operate the business, if not included in the transaction.
The transferee must also pay all Monthly Franchise Fees for completed jobs up through the date of closing, fees, amounts owed under any promissory notes with Chem Dry, late payment fees, late report fees, NSF Fees, interest fees, and all other fees or amounts owed to Chem Dry, plus interest. The transferee may also be responsible for all commissions, broker fees, or other similar expenses if the business was listed with a broker or lead referral network.
It is important to note that the new franchise agreement signed by the transferee may differ materially from the original agreement. However, it will not provide for payment of an initial license fee or purchase of an Initial Package. The transferee must meet Chem Dry's current requirements and specifications for entering or transferred Chem Dry businesses, including potential upgrades to equipment and vans within a specified timeframe.