What happens to the terms and conditions of subsequent Chem-Dry COAs?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Upon expiration of this COA, Franchisee may be eligible to enter into a second COA with CDI so long as Franchisee notifies CDI of its desire to do so at least sixty (60) days prior to the expiration of this COA. Any subsequent COAs will be upon then current terms and conditions and will require payment of the then current fee. Upon expiration of this COA and if CDI does not enter into a new COA with Franchisee, Franchisee will have until the expiration date of this COA to move all franchise operations to office locations within the designated franchised areas for each Franchise. Failure to do so within the timeframe will be a material breach of the Agreement for that Franchise. Franchisee acknowledges and agrees CDI has no obligation to enter into subsequent COAs with Franchisee and that doing so will be at CDI's sole discretion.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee may be eligible to enter into a second Consolidated Office Agreement (COA) with Chem-Dry. To do so, the franchisee must notify Chem-Dry of their desire at least sixty (60) days before the expiration of the current COA.
However, any subsequent COAs will be subject to the terms and conditions that are current at that time, and will require payment of the then-current fee. Chem-Dry has no obligation to enter into subsequent COAs with the franchisee, and doing so is at Chem-Dry's sole discretion.
If a new COA is not entered into upon the expiration of the current one, the franchisee has until the expiration date of the COA to move all franchise operations to office locations within the designated franchised areas for each franchise. Failure to do so within the specified timeframe will be considered a material breach of the Franchise Agreement for that franchise.