Does the Chem Dry franchisee acknowledge that the terms in the agreement are reasonably necessary to maintain Chem Dry's standards?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE acknowledges that FRANCHISEE has read this Agreement and CDI's Franchise Disclosure Document and that FRANCHISEE understands and accepts the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain CDI's high standards of quality and service, as well as the uniformity of those standards at each CHEM-DRY Business and to protect and preserve the goodwill of the Marks.
FRANCHISEE acknowledges that CDI has the right to restrict FRANCHISEE'S sources of goods and services, as provided in various sections in this Agreement.
FRANCHISEE acknowledges that FRANCHISEE has conducted an independent investigation of the business contemplated by this Agreement and recognizes that it involves business risks and that the success of the venture is largely dependent upon the business abilities of FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the franchisee acknowledges specific aspects of the franchise agreement. The franchisee confirms they have read the agreement and the Franchise Disclosure Document (FDD). They also understand and accept the terms, conditions, and covenants within the agreement.
This acknowledgment includes recognizing that these terms are reasonably necessary for maintaining Chem Dry's high standards of quality and service. It also ensures uniformity across all Chem-Dry businesses and protects the goodwill associated with the Chem-Dry marks. This is a standard clause in franchise agreements, intended to ensure that franchisees understand and agree to the obligations they are undertaking.
Furthermore, the franchisee acknowledges Chem Dry's right to restrict sources of goods and services as detailed in various sections of the agreement. The franchisee also confirms they have conducted an independent investigation of the business opportunity, understanding the inherent business risks and recognizing that their success largely depends on their own business abilities. This acknowledgement serves to protect Chem Dry from future claims that the franchisee was not aware of the terms or risks involved.