What must a Chem Dry franchisee do with signs, brochures, and other materials containing any Chem Dry mark upon termination or expiration of the franchise agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to deliver to CDI or to destroy all signs, brochures, advertising materials, forms, invoices and other materials containing any Mark or otherwise identifying or relating to a CHEM-DRY Business, including removing all signs, emblems, lettering and logos, or any other indicia of a CHEM-DRY Business, from all business vehicles not surrendered to a third party or purchased by CDI; and
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- FRANCHISEE agrees refer any telephone number associated in any way with any Mark or the Business to 1-800-CHEMDRY (1-800-243-6379) (or another number specified by CDI). FRANCHISEE further acknowledges that it shall be a direct violation of this Agreement for FRANCHISEE to cause or participate in the transfer of any such telephone numbers to any person or entity other than CDI. In the event that FRANCHISEE fails to comply with any of the foregoing, FRANCHISEE hereby acknowledges that CDI has the sole rights to and interest in all such telephone numbers and directory listings associated with any Marks. FRANCHISEE therefore authorizes CDI, and hereby appoints CDI and any officer of CDI as FRANCHISEE's attorney in fact, to direct any telephone companies and listing agencies to transfer any such telephone numbers to CDI, or to another person or party at its direction, and the telephone companies and all listing agencies may accept such direction or this Agreement as conclusive of the exclusive rights of CDI in such telephone numbers and directory listings and its authority to direct their transfer.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must either deliver to Chem Dry or destroy all signs, brochures, advertising materials, forms, invoices, and other materials containing any Chem Dry mark. This also includes removing all signs, emblems, lettering, and logos, or any other indication of a Chem Dry business, from all business vehicles not surrendered to a third party or purchased by Chem Dry.
This requirement ensures that the franchisee ceases to represent themselves as part of the Chem Dry system after the agreement ends. This protects Chem Dry's brand integrity and prevents potential confusion among customers.
Additionally, the franchisee must take action to cancel all fictitious or assumed name or equivalent registrations relating to the franchisee's use of any Chem Dry mark. The franchisee must also agree to refer any telephone number associated with any Chem Dry mark or the business to 1-800-CHEMDRY (1-800-243-6379) or another number specified by Chem Dry, and cannot transfer any such telephone numbers to any person or entity other than Chem Dry.
These stipulations are typical in franchise agreements to ensure a clean break and prevent misuse of the brand's intellectual property after the franchise relationship concludes. Franchisees should be aware of these obligations and factor in the costs associated with removing signage and rebranding their business if they choose not to renew or if the agreement is terminated.