What forms of guidance does Chem Dry furnish to franchisees in connection with the operation of their business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
n during the first three years of the term of this Agreement. If FRANCHISEE fails to attend a convention as required by this Agreement CDI shall have the right to impose on FRANCHISEE a fine of $500. FRANCHISEE shall pay such fine when invoiced.
C. GUIDANCE AND MANUAL
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- CDI shall furnish to FRANCHISEE guidance in the form and substance determined necessary by CDI in connection with the operation of his or her BUSINESS. In the sole discretion of CDI, it shall furnish such guidance in the form of CDI's training manual (which may consist of one or more separate manuals) and other manuals for the operation of a CHEM-DRY Business (the "Manual"), newsletters or other written materials, electronic media, telephonic conversations and/or consultation at the offices of CDI or FRANCHISEE. Additional guidance and assistance shall be available, in the sole discretion of CDI, at per diem fees and charges established from time to time by CDI. New ideas or inventions when made or obtained by CDI will be made available to franchisees at CDI's sole discretion.
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- During the term of the Franchise, CDI will provide FRANCHISEE with access to the Manual, which could include DVDs, computer software and other applications, access to webbased training, other electronic media, and/or written materials. The Manual contains mandatory and suggested specifications, standards, operating procedures and rules ("System Standards") prescribed from time to time by CDI for the operation of a CHEM-DRY Business and information relative to other obligations of FRANCHISEE hereunder. CDI shall have the right to add to, delete from, replace and otherwise modify the Manual from time to time to reflect changes in System Standards and the Franchise System, provided that no such addition or modification shall alter FRANCHISEE'S fundamental status and rights under this Agreement. FRANCHISEE shall keep the Manual current. In the event of a dispute over the contents of the Manual, the master copy maintained by CDI at its principal office, shall be controlling. FRANCHISEE agrees that the Manual's contents are confidential and agrees not disclose the Manual at any time to any person other than employees of the BUSINESS who need to know its contents or use the Manual for any purpose other than operating the BUSINESS. FRANCHISEE may not, at any time, copy, duplicate, record, or otherwise reproduce any part of the Manual. If FRANCHISEE loses the
Manual or the Manual is damaged or destroyed, FRANCHISEE shall obtain a replacement copy at CDI's then applicable charge.
- At CDI's option, CDI may post some, or all, of the Manual on a restricted Website or intranet to which FRANCHISEE will have access. (For purposes of this Agreement, "Website" means an interactive electronic document contained in a network of computers linked by communications software, including, without limitation, the Internet and World Wide Web home pages). If CDI does so, FRANCHISEE agrees to follow CDI's security protocols and monitor and access the Website or intranet for any updates to the Manual or System Standards. Any passwords or other digital identifications necessary to access the Manual on a Website or intranet will be deemed to be part of Confidential Information (defined in Section 5 below).
4. MARKS
A. OWNERSHIP AND GOODWILL OF MARKS
FRANCHISEE acknowledges the right to use the Marks is derived solely from this Agreement and is limited to the conduct of the BUSINESS pursuant to and in compliance with this Agreement and all System Standards as prescribed by CDI from time to time during the Term. Any unauthorized use of the Marks by FRANCHISEE shall constitute an infringement of the rights of CDI in and to the Marks. FRANCHISEE agrees that all usage of the Marks by FRANCHISEE and any goodwill established thereby shall inure to the exclusive benefit of CDI. FRANCHISEE acknowledges that this Agreement does not confer any goodwill or other interests in the Marks upon FRANCHISEE (other than the right to operate the BUSINESS under this Agreement). All provisions of this Agreement applicable to the Marks shall apply to any additional proprietary trade and service marks and commercial symbols CDI hereafter authorizes for use by FRANCHISEE. FRANCHISEE may not at any time during or after the term of this Agreement, contest or assist any other person in contesting the validity, or CDI's ownership of, the Marks.
B. LIMITATIONS ON FRANCHISEE'S USE OF MARKS
FRANCHISEE agrees to use the Marks as the sole identification for the BUSINESS, except that FRANCHISEE shall always be identified as the independent owner and operator thereof in the form and manner prescribed by CDI.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry provides guidance to franchisees in several forms. This guidance is determined necessary by Chem Dry and can include the training manual, which may consist of multiple separate manuals, and other manuals for operating a Chem Dry business. Additional support mechanisms include newsletters, written materials, electronic media, phone conversations, and consultations at Chem Dry's offices or the franchisee's location. Chem Dry also has the discretion to offer further assistance for per diem fees and charges. New ideas or inventions made or obtained by Chem Dry may be made available to franchisees at Chem Dry's discretion.
Chem Dry will provide franchisees access to the Manual, which may include DVDs, computer software, web-based training, other electronic media, and/or written materials. The Manual contains mandatory and suggested specifications, standards, operating procedures, and rules, referred to as System Standards, prescribed by Chem Dry for operating a Chem Dry Business. Chem Dry retains the right to modify the Manual to reflect changes in System Standards and the Franchise System, provided that such changes do not alter the franchisee's fundamental status and rights under the agreement. Franchisees must keep their Manual current, and the master copy maintained by Chem Dry will be controlling in case of disputes. The franchisee must maintain the confidentiality of the Manual's contents and only disclose it to employees who need to know the information for business operations.
Chem Dry also provides an initial training program that franchisees must complete before starting business operations, unless they are existing franchisees. This training covers mixing and applying cleaning solutions, using equipment, computing estimates, soliciting and maintaining business, and replacing inventory. Franchisees purchasing a new franchise are required to attend a training session in Logan, Utah, or another designated location. Transferees must complete this training within 90 days of executing the agreement. Franchisees are responsible for all expenses related to attending the training program, although the Initial Package includes training tuition for two people. Additional trainees or training associated with franchise transfers may incur tuition charges, which as of the Effective Date, are $75.00 per day per attendee.
If Chem Dry determines that a franchisee has not satisfactorily completed the training program, it can require the franchisee to attend the next initial training program at their own expense, view web-based training, or other media, and pass the accompanying tests. Unsatisfactory performance or failure to complete the training can result in acceleration of the franchisee's Business Note and immediate termination of the agreement. This comprehensive approach to training and ongoing guidance aims to ensure that franchisees are well-equipped to operate their Chem Dry businesses according to the franchisor's standards and procedures.