If Chem Dry modifies the franchise agreement due to jurisdictional requirements, does that modification apply everywhere?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
If any applicable and binding law or rule of any jurisdiction requires a greater prior notice than this Agreement requires of this Agreement's termination or of CDI's refusal to enter into a successor franchise agreement, or some other action not required hereunder, or if under any applicable and binding law or rule of any jurisdiction, any provision of this Agreement or any System Standard is invalid or unenforceable, the prior notice and/or other action required by such law or rule shall be substituted for the comparable provisions hereof, and CDI shall have the right, in its sole discretion, to modify such invalid or unenforceable provision or System Standard to the extent required to be valid and enforceable. Such modification(s) to this Agreement shall be effective only in such jurisdiction, unless CDI elects to give it greater applicability, and shall be enforced as originally made and entered into in all other jurisdictions. FRANCHISEE agrees to be bound by any such modification to this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, modifications to the franchise agreement due to jurisdictional requirements typically apply only to that specific jurisdiction, unless Chem Dry elects to extend the modification's applicability. The franchise agreement states that if any law or rule requires a greater prior notice of termination or refusal to enter a successor agreement, or if any provision is invalid or unenforceable under a jurisdiction's laws, the requirements of that jurisdiction will be substituted for the comparable provisions in the agreement.
Chem Dry retains the right to modify any invalid or unenforceable provision or System Standard to the extent required for it to be valid and enforceable. However, such modifications are effective only in that specific jurisdiction, unless Chem Dry decides to apply it more broadly.
Prospective franchisees should understand that changes made to the franchise agreement to comply with local laws may not apply universally. Franchisees are obligated to adhere to any such modifications within their jurisdiction and should be aware that Chem Dry can choose to limit the modification's effect to that jurisdiction only. This ensures that the franchise agreement remains enforceable and compliant across different regions while allowing Chem Dry to maintain consistency where possible.
Therefore, a Chem Dry franchisee needs to be aware of the specific regulations in their state and how those regulations might affect the franchise agreement. It is recommended that franchisees seek legal counsel to understand the implications of jurisdictional requirements and modifications to the franchise agreement.