What form of notice is required by Chem Dry to identify the franchisee as the owner of the business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
w. FRANCHISEE and its transferring Owners will not directly or indirectly at any time or in any manner (except with respect to other CHEM-DRY Businesses FRANCHISEE owns and operates) identify itself or themselves or any business as a current or former CHEM-DRY Business or as one of CDI's current or former franchisees; use any Mark, any colorable imitation of a Mark, or other indicia of a CHEM-DRY Business in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark, or other commercial symbol that suggests or indicates a connection or association with CDI.
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- FRANCHISEE agrees to take the action required to cancel all fictitious or assumed name or equivalent registrations relating to FRANCHISEE'S use of any Mark;
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- FRANCHISEE agrees to deliver to CDI or to destroy all signs, brochures, advertising materials, forms, invoices and other materials containing any Mark or otherwise identifying or relating to a CHEM-DRY Business, including removing all signs, emblems, lettering and logos, or any other indicia of a CHEM-DRY Business, from all business vehicles not surrendered to a third party or purchased by CDI; and
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- FRANCHISEE agrees refer any telephone number associated in any way with any Mark or the Business to 1-800-CHEMDRY (1-800-243-6379) (or another number specified by CDI). FRANCHISEE further acknowledges that it shall be a direct violation of this Agreement for FRANCHISEE to cause or participate in the transfer of any such telephone numbers to any person or entity other than CDI. In the event that FRANCHISEE fails to comply with any of the foregoing, FRANCHISEE hereby acknowledges that CDI has the sole rights to and interest in all such telephone numbers and directory listings associated with any Marks. FRANCHISEE therefore authorizes CDI, and hereby appoints CDI and any officer of CDI as FRANCHISEE's attorney in fact, to direct any telephone companies and listing agencies to transfer any such telephone numbers to CDI, or to another person or party at its direction, and the telephone companies and all listing agencies may accept such direction or this Agreement as conclusive of the exclusive rights of CDI in such telephone numbers and directory listings and its authority to direct their transfer.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, franchisees are granted a non-exclusive franchise to operate a Chem-Dry Business using the Marks and Franchise System within a defined area. Chem Dry requires that franchisees do not identify themselves as current or former Chem-Dry business owners, use any marks or imitations of marks, or use any trade names or commercial symbols that suggest a connection with Chem Dry, except for other Chem-Dry businesses the franchisee owns and operates.
Upon termination of the franchise agreement, Chem Dry requires franchisees to take specific actions to remove any association with the brand. This includes canceling any assumed name registrations related to the use of Chem Dry's marks, delivering or destroying all materials containing the marks, and removing any signs or logos from business vehicles not purchased by Chem Dry. Franchisees must also forward any telephone numbers associated with the Chem-Dry business to 1-800-CHEMDRY or another number specified by Chem Dry.
These requirements ensure that upon termination, there is no confusion about the franchisee's affiliation with Chem Dry and that all branding and contact information are properly transferred or removed. This protects Chem Dry's brand identity and prevents former franchisees from leveraging the brand's reputation without authorization. Prospective franchisees should understand these obligations and be prepared to comply with them upon the termination of their franchise agreement.