When does a Chem Dry franchisee pay the renewal fee for a renewal franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
If FRANCHISEE qualifies for a renewal franchise, FRANCHISEE agrees to sign the franchise agreement CDI then uses to grant franchises for new CHEM-DRY Businesses (modified as necessary to reflect the fact that it is for a renewal franchise), which may contain provisions that differ materially from any and all of those contained in this Agreement, including without limitation, increased or additional fees and new product or service offerings as Required Services or Additional Services. At the time FRANCHISEE signs the renewal franchise agreement, FRANCHISEE will pay CDI a renewal fee as set forth on the Summary Page of this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee is required to pay the renewal fee at the time they sign the renewal franchise agreement. The specific amount of the renewal fee is detailed on the Summary Page of the Franchise Agreement.
It's important to note that the renewal franchise agreement may include terms that differ significantly from the original agreement. These differences can include increased or additional fees, as well as new product or service offerings that Chem Dry may designate as Required Services or Additional Services. Therefore, franchisees should carefully review the renewal agreement to understand any changes to their obligations and costs.
To qualify for a renewal franchise, a Chem Dry franchisee must meet certain conditions. These include remaining in good standing with no defaults, completing all current training courses, and complying with the existing franchise agreement. Additionally, franchisees must agree to update their operating assets and modify their business to meet the system standards applicable to new Chem Dry businesses.