What is a Chem Dry franchisee required to do regarding their business location within the franchised area?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
NCHISEE is in compliance with this Agreement when no event or circumstance has occurred that will give CDI the right to terminate this Agreement under Section 15, whether or not CDI has given notice of default, non-compliance or termination to FRANCHISEE.
FRANCHISEE agrees to operate and conduct business from a single location within the nonexclusive Franchised Area from which FRANCHISEE may operate as many crews, teams, sales forces and vans as necessary. In the event FRANCHISEE has multiple franchises, a separate cleaning crew must be available for each franchise to perform requested work within the Franchised Area for the Approved Services.
FRANCHISEE agrees to advertise and solicit business for the authorized services within the Franchised Area only. FRANCHISEE further agrees that FRANCHISEE will accept and perform only those jobs that are wi
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee must operate their business from a single location within their assigned, non-exclusive franchised area. From this location, the franchisee can manage as many crews, teams, sales forces, and vans as needed to serve the area. If a franchisee owns multiple Chem Dry franchises, they must have a separate cleaning crew available for each franchise to handle service requests within each franchised area. This ensures that each franchise operates independently and can meet the demands of its specific territory.
Chem Dry franchisees are required to focus their advertising and business solicitation efforts exclusively within their franchised area. They are also obligated to accept and perform only those jobs that fall within the boundaries of their designated territory. This territorial restriction is strictly enforced; performing jobs outside the franchised area can result in a fine of $5,000 per occurrence, or even termination of the franchise agreement. This policy is in place to protect the market areas of other franchisees and maintain the integrity of the franchise system.
Chem Dry also offers a Consolidated Office Agreement (COA) under specific conditions. This agreement allows a franchisee who owns multiple Chem Dry franchises in different areas to operate all of them from a single office location, rather than maintaining separate offices for each franchise. The COA is granted at Chem Dry's discretion, and is non-transferable and revocable. This exception to the standard office location requirement provides flexibility for franchisees who manage multiple territories, potentially reducing overhead costs and streamlining operations. However, it's important to note that this is not a guaranteed right and is subject to Chem Dry's approval.