Is a Chem Dry franchisee required to participate in national promotions and programs?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI may require FRANCHISEE's participation in international, national, regional and other marketing promotions, at FRANCHISEE's expense.
This includes, without limitation, promotional programs and/or national account programs.
FRANCHISEE, may, for good cause as determined by CDI, request permission from CDI not to perform services for any one or more of the national accounts ("national accounts" includes any account which contracts with CDI for services in more than one franchised area and referrals from parties) located in the Franchised Area.
In addition, a national account may elect not to do business with FRANCHISEE.
In either event, FRANCHISEE agrees that CDI, another franchisee or a third party designated by CDI may provide services for the national account in the Franchised Area.
Neither CDI nor any other franchisee will be liable or obligated to pay FRANCHISEE any compensation for doing so and neither CDI nor any franchisee will be considered in breach of any provision of this Agreement or any other agreement between CDI and FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees may be required to participate in international, national, regional, and other marketing promotions at their own expense. These promotions can include promotional programs and national account programs. A national account is defined as any account that contracts with Chem Dry for services in more than one franchised area, as well as referrals from other parties.
However, a Chem Dry franchisee can request permission from Chem Dry not to perform services for one or more national accounts if they have a valid reason, as determined by Chem Dry. Additionally, a national account may choose not to do business with a particular franchisee. In either of these situations, Chem Dry, another franchisee, or a third party designated by Chem Dry can provide services for the national account within the franchisee's area.
In cases where the franchisee does not service a national account, neither Chem Dry nor any other franchisee is liable to pay the franchisee any compensation. Furthermore, neither Chem Dry nor any other franchisee will be considered in breach of any agreement for providing services to the national account in the franchisee's territory under these circumstances.