What happens if a Chem Dry franchisee fails to pay the Initial Fee when due?

According to Chem Dry's 2024 Franchise Disclosure Document, specifically for franchises sold in North Dakota, failure to pay the initial franchise fee when due constitutes a material default under the Franchise Agreement. This has significant repercussions for the franchisee.

Chem Dry has the right to suspend providing services to the franchisee. This could include training, operational support, marketing assistance, and other resources that are crucial for launching and maintaining the business. Additionally, Chem Dry can instruct approved suppliers to suspend providing goods and services to the franchisee. This could affect the franchisee's ability to obtain necessary equipment, cleaning solutions, and other supplies required to operate the Chem Dry business.

These actions can continue until Chem Dry receives the initial franchise fee. This means the franchisee's business operations could be severely hampered or even halted until the outstanding payment is made. This provision underscores the importance of ensuring timely payment of the initial franchise fee to maintain a good standing with Chem Dry and avoid disruptions to the business.