What is the fine for a Chem Dry franchisee possessing or using cleaning solutions not obtained from Chem Dry?

According to Chem Dry's 2024 Franchise Disclosure Document, if a franchisee possesses or uses cleaning solutions not obtained from Chem Dry in the operation of their business, Chem Dry has the right to impose a fine of $5,000 for each occurrence or terminate the Franchise Agreement. The franchisee is obligated to pay this fine upon invoicing.

This policy underscores Chem Dry's strict control over product sourcing and adherence to approved operating procedures. By mandating the exclusive use of Chem Dry-supplied cleaning solutions, the franchisor aims to maintain consistent service quality and protect the brand's reputation. This requirement ensures that all Chem Dry businesses adhere to the franchisor's standards for cleaning effectiveness and safety.

For a prospective Chem Dry franchisee, this means they must factor in the cost of purchasing cleaning solutions directly from Chem Dry or its designated suppliers. Failure to comply with this requirement can result in substantial financial penalties or even termination of the franchise agreement. Franchisees should carefully review the approved supplier list and pricing to ensure they can meet the minimum purchase requirements and maintain compliance with Chem Dry's standards.

It is also important to note that the franchisee is required to purchase a minimum of $3,244.50 of cleaning solution from Chem Dry or its affiliates each calendar year. This minimum purchase amount may increase, but not more than once per calendar year, to reflect increases in the Metropolitan Area Consumer Index for Urban Consumers.