What is the Chem Dry franchisee's obligation regarding advertising and soliciting business within their franchised area?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
perate 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 within the Franchised Area.
If FRANCHISEE accepts and performs a job outside of the Franchised Area, CDI will have the right to impose on FRANCHISEE a fine of $5,000 for each occurrence, due and payable upon invoice, or the right to terminate this Agreement.
FRANCHISEE agrees to, at all times, faithfully, honestly and diligently perform his or her obligations hereunder and to continuously exert best efforts to effectively promote and enhance the BUSINESS and develop and service customers within the Franchised Area.
**E.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee is obligated to advertise and solicit business specifically for authorized services within their designated franchised area. The franchisee must also accept and perform jobs only within this defined area.
If a Chem Dry franchisee accepts and completes a job outside of their franchised area, Chem Dry has the right to impose a fine of $5,000 for each occurrence. This fine is due upon invoicing. Alternatively, Chem Dry reserves the right to terminate the Franchise Agreement if a franchisee violates this stipulation.
Furthermore, the Chem Dry franchisee is expected to diligently perform their obligations under the agreement and continuously exert their best efforts to promote and enhance the business, as well as develop and service customers within their franchised area. The franchisee is also required to list the business in the principal regular (white pages) and telephone directories distributed within the business's franchised area, and in such telephone or internet directory categories as specified by Chem Dry. Chem Dry retains the option to convert and update this telephone directory listing obligation to digital and electronic advertising with written notice to the franchisee.