What happens if a Chem-Dry franchisee uses non-Chem-Dry cleaning solutions?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
can offer some of the Additional Services.
You must use only equipment, cleaning solutions, supplies, business forms, promotional materials and business services which have either been obtained from or approved by CDI in your Chem-Dry Business. You must purchase the Initial Package from CDI, the price of which is included in the Initial Fee. To protect the integrity of the Chem-Dry name and assure high quality cleaning results, you must purchase all cleaning solutions from CDI at the then current list price, plus applicable taxes. If you possess or use non-Chem-Dry cleaning solutions in your Chem-Dry Business, CDI will have the right to impose on you a fine of $5,000 per violation or terminate the Franchise Agreement. You are required to purchase a minimum of $3,244.50 (increased once each calendar year to reflect increases in the
Consumer Price Index as published by the U.S. Department of Labor or in a successor index we select) of cleaning solution per franchise from CDI each calendar year ("Minimum Purchase Amount"). If you choose to offer certain Additional Services, you may be required to purchase additional amounts of product (including a designated mix of products). You may purchase other equipment, products or supply items from CDI at the then current list price, plus applicable taxes.
Required and approved suppliers
We may approve only a limited number of sources or a single source (which may include us or our affiliates) for certain equipment, supply items, promotional materials and business services (such as credit card processing).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees are required to use only approved equipment, cleaning solutions, supplies, and services. Specifically, franchisees must purchase all cleaning solutions from Chem-Dry Cleaning, Inc. (CDI). This requirement is in place to protect the integrity of the Chem-Dry name and ensure high-quality cleaning results.
If a Chem-Dry franchisee possesses or uses non-Chem-Dry cleaning solutions in their business, CDI has the right to impose a fine of $5,000 per violation or terminate the Franchise Agreement. Additionally, if a franchisee uses any cleaning process or equipment not approved by CDI, including improper mixing or application of authorized products, CDI can also impose a fine of up to $5,000 per violation or terminate the Franchise Agreement.
This restriction highlights the importance of adhering to Chem-Dry's standards and approved suppliers. Franchisees should ensure they only use cleaning solutions sourced directly from CDI to avoid potential penalties or termination of their franchise agreement. It is also important to note that the franchisee is required to purchase a minimum of $3,244.50 of cleaning solution per franchise from CDI each calendar year, which is increased annually to reflect increases in the Consumer Price Index.