Is a Chem Dry franchisee required to purchase and install the Computer System upon Chem Dry's request?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI may designate specify or require that certain brands, types, makes, and/or models of communications, computer systems, and hardware be used by you, including without limitation: (i) a compatible computer system that complies with our standards and specifications; (ii) archival back-up systems; (iii) internet access mode and speed; and (iv) physical, electronic, and other security systems (the "Computer System"). CDI may modify the specifications and components of the Computer System from time to time. Upon CDI's request, FRANCHISEE agrees to purchase and install the Computer System, including any upgrades or replacements CDI specifies.
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- FRANCHISEE also agrees to pay initial and ongoing fees to CDI or its designee for licensing, maintenance and support of any proprietary computer software/applications CDI or its designee provides as a part of the Computer System and that such software/applications may include, among other things, a credit card or other payment processing function requiring FRANCHISEE to process all credit card and other payment transactions through this component of the Computer System.
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- Franchisee agrees to execute and comply with the terms of the Software License Agreement for use in conjunction with the Computer System and acknowledges that any breach of the Software License Agreement will be deemed to be a material breach of this Agreement and any other franchise agreement FRANCHISEE may have with CDI or its affiliates.
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- You may not implement a website or URL for your Chem-Dry Business, either yourself or through a third-party provider, without our prior written consent.
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- We have the right to change this requirement at our discretion.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees are required to purchase and install the Computer System if Chem Dry requests it. Chem Dry may specify the brands, types, makes, and/or models of communication, computer systems, and hardware that franchisees must use. This includes a compatible computer system that complies with Chem Dry's standards, archival back-up systems, internet access mode and speed, and physical, electronic, and other security systems. Chem Dry also retains the right to modify the specifications and components of the Computer System.
In addition to purchasing and installing the Computer System, Chem Dry franchisees must also pay initial and ongoing fees to Chem Dry or its designee for licensing, maintenance, and support of any proprietary computer software/applications that Chem Dry provides as part of the Computer System. This software may include a credit card or other payment processing function, requiring franchisees to process all credit card and other payment transactions through this component of the Computer System.
Furthermore, franchisees must agree to execute and comply with the terms of a Software License Agreement for use in conjunction with the Computer System. A breach of the Software License Agreement will be considered a material breach of the Franchise Agreement and any other franchise agreement the franchisee may have with Chem Dry or its affiliates. Franchisees are also restricted from implementing a website or URL for their Chem-Dry Business without Chem Dry's prior written consent, and Chem Dry has the right to change this requirement at its discretion. This ensures that Chem Dry maintains control over the technology and online presence used by its franchisees.