What is the fine for a Chem Dry franchisee using unapproved cleaning processes or equipment?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
s no later than thirty (30) days from the invoice date. CDI may approve only a limited number of sources or a single source (which may include CDI or its affiliates) for certain Operating Assets, or other equipment, supply items, promotional materials and business services (such as credit card processing).
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- If FRANCHISEE: (1) uses any cleaning process or equipment not approved by CDI (which includes improper mixing or application) or (2) offers services in the BUSINESS not approved by CDI, CDI shall have the right to impose on FRANCHISEE a fine of $5,000 for each occurren
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee may be fined for using unapproved cleaning processes or equipment. Specifically, if a Chem Dry franchisee uses any cleaning process or equipment not approved by Chem Dry, including improper mixing or application, or offers services in the business not approved by Chem Dry, the company has the right to impose a fine of $5,000 for each occurrence. Alternatively, Chem Dry may choose to terminate the franchise agreement.
Similarly, if a Chem Dry franchisee possesses or uses cleaning solutions not obtained from Chem Dry in the operation of the business, Chem Dry has the right to impose a fine of $5,000 for each occurrence or terminate the agreement. The franchisee is obligated to pay any such fine upon invoicing.
This policy underscores the importance of adhering to Chem Dry's approved methods and sourcing for maintaining brand consistency and quality. For a prospective franchisee, this means understanding and strictly following the prescribed cleaning processes and using only approved equipment and solutions to avoid incurring significant fines or risking termination of the franchise agreement.