What must a Chem Dry franchisee do before selling or transferring a cargo van used for the business?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to purchase or lease one (1) or more white cargo van(s) suitable for the purpose of transporting various equipment, supplies and materials needed to operate the BUSINESS and which otherwise meets CDI's System Standards in the Manual. The van(s) must be used for all cleaning jobs. FRANCHISEE agrees: (1) to maintain the condition and appearance of FRANCHISEE's van(s) according to the standards imposed by CDI from time to time and to maintain the condition of the equipment consistent with the image of a CHEM-DRY Business as a professionally operated service business; (2) that the van(s) shall not be used for any purpose other than the operation of the BUSINESS as described herein; (3) not to sell, donate, rent, lease or otherwise transfer any of the van(s) without first removing any and all signs, emblems, lettering and logos indicating an association with CHEM-DRY Businesses, and/or other Marks, from the van(s).
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 remove all signs, emblems, lettering, and logos indicating an association with Chem Dry businesses or other marks from the cargo van before selling, donating, renting, leasing, or otherwise transferring it. This requirement ensures that the vehicle does not continue to represent Chem Dry after it is no longer under the control of the franchisee.
This provision is fairly standard in franchising, as franchisors want to protect their brand identity and prevent any confusion or misrepresentation by former franchisees or unrelated parties. By removing all branding elements, Chem Dry ensures that the van cannot be mistaken for an active Chem Dry vehicle, maintaining brand consistency and quality control.
For a prospective Chem Dry franchisee, this means that when the time comes to dispose of a company vehicle, they will need to factor in the cost and effort of removing all Chem Dry branding. Failing to do so could result in a breach of the franchise agreement and potential legal repercussions. It is important to carefully follow Chem Dry's guidelines for de-identification to avoid any issues.