How is the 'Franchised Area' for a Chem Dry business defined?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
of or related to the application was true, correct and complete as of the time of submission and is true, correct and complete as of the Effective Date. Such application has been approved by CDI in reliance upon all of the representations made therein. Subject to the terms and conditions of this Agreement, CDI hereby grants to FRANCHISEE a non-exclusive franchise to use the Marks and the Franchise System (the "Franchise") to operate a CHEM-DRY Business (the "BUSINESS") in the area as defined in the Summary Page to this Agreement (the "Franchised Area") and to use the Marks in the operation thereof from the Effective Date of this Agreement for a term (the "Term") beginning on the Effective Date and ending five (5) years from the Payment Start Date as referenced in Section 8.B. of this Agreement, or, if this Agreement pertains to the transfer of an existing Chem-Dry Business or is a Renewal Agreement, ending five (5) years from the Effective Date of this Agreement. In connection with the operation of the BUSINESS, FRANCHISEE must offer and perform carpet and area rug cleaning, upholstery cleaning, spot removal applying anti-allergen and deodorizer, and protecting services, including removing red stains, treating pet urine odor on carpets and imparting stain resistance to carpet fibers that we mandate, and such other services which may from time to time be changed, specified, and/or directed by CDI (the "Required Services"). FRANCHISEE also may, upon consent or request of CDI, offer and perform other services that CDI first approves, which may require certification by successful completion of additional training and/or purchase of additional equipment and cleaning solutions ("Additional Services"). This Agreement refers to the Required Services and the Additional Services as the "Approved Services." CDI reserves the right to change the lists of Required Services and Approved Services at any time.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the 'Franchised Area' is defined in the Summary Page of the Franchise Agreement. Chem Dry determines the specific area based on factors such as population, population density, geographical terrain, and market potential. The franchise agreement grants a non-exclusive franchise to operate a Chem-Dry Business within this defined area.
The number of Chem Dry franchises allowed to operate within a Franchised Area is determined by dividing the area's population by 60,000. The resulting whole number represents the maximum number of franchises Chem Dry may grant in that area. However, Chem Dry, or a third party they designate, can service national accounts within the Franchised Area if the franchisee chooses not to or if the national account prefers not to work with the franchisee.
Chem Dry retains the right to grant franchises for any area, including those inside or outside the Franchised Area, on any terms they deem appropriate. This means that while a franchisee is granted a specific territory, Chem Dry can still operate or franchise other businesses nearby. The document also states that the maximum number of franchises allowed in an area may change due to population fluctuations, but no franchise will be terminated solely due to a decrease in the maximum number allowed.