If Chem Dry modifies its System Standards, what is the Chem Dry franchisee's obligation regarding implementing those changes?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE acknowledges and agrees that operating and maintaining the BUSINESS according to System Standards is essential to preserve the goodwill of the Marks and all CHEM-
DRY Businesses. Therefore, FRANCHISEE agrees at all times to operate and maintain the BUSINESS according to all of CDI's System Standards, as and when modified by CDI. FRANCHISEE agrees that System Standards CDI prescribes in the Manual, or otherwise communicate to FRANCHISEE in writing or another tangible form (for example, via Franchise System extranet or Website), are an integral part of this Agreement as if fully set forth within its text, provided that CDI may unilaterally amend System Standards and the Manual without the consent of FRANCHISEE. All references to this Agreement include all System Standards as periodically modified.
H. MODIFICATION OF SYSTEM STANDARDS
CDI periodically may modify System Standards, which may accommodate international, national, regional or local variations, and these modifications may obligate FRANCHISEE to invest additional capital in the BUSINESS and/or incur higher operating costs. FRANCHISEE agrees to implement any changes in System Standards within the time period CDI requests, whether they involve buying new Operating Assets, adding new Products or Services, or otherwise modifying the nature of FRANCHISEE operations, as if they were part of this Agreement as of the Commencement date of this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees must operate and maintain their business according to Chem Dry's System Standards, including any modifications made by Chem Dry. These System Standards are considered an integral part of the Franchise Agreement, as if fully written within the agreement's text. Chem Dry can unilaterally amend these System Standards and the Manual without the franchisee's consent.
Chem Dry periodically may modify System Standards to accommodate international, national, regional, or local variations. These modifications may require franchisees to invest additional capital in the business and/or incur higher operating costs. Franchisees must implement any changes in System Standards within the time period Chem Dry requests. This includes buying new operating assets, adding new products or services, or otherwise modifying the nature of the franchisee's operations, as if these changes were part of the agreement from its start date.
This means a Chem Dry franchisee must stay current with all updates to the System Standards, even if those updates require additional investment or changes to their business practices. The franchisee does not have the option to refuse these changes, and they are bound to implement them within the timeframe specified by Chem Dry. This requirement ensures uniformity and consistency across all Chem Dry franchises, which Chem Dry believes is essential for preserving the brand's goodwill.