If I sell my Chem Dry franchise, who assumes the outstanding obligations to customers and clients?

According to Chem Dry's 2024 Franchise Disclosure Document, the franchisee is responsible for returning amounts prepaid by customers for jobs not in progress or not to be performed within 15 days after the termination or expiration of the franchise agreement. The franchisor, CDI, does not assume liability for the franchisee's obligations to customers. This means that if you sell your Chem Dry franchise, you remain responsible for fulfilling any outstanding obligations to customers for services they have already paid for but have not yet received.

This requirement protects customers by ensuring they receive the services they paid for or a refund. For a prospective Chem Dry franchisee, this highlights the importance of carefully managing customer contracts and prepaid services. It also means that when planning to sell the franchise, you must account for these outstanding obligations and either fulfill them before the sale or make appropriate financial arrangements.

Furthermore, Chem Dry emphasizes that the franchisee is independently responsible for the day-to-day operations of the business and any agreements made with customers. This reinforces the franchisee's direct accountability for customer service and financial obligations. Therefore, a selling franchisee must ensure a smooth transition or proper compensation for outstanding services to avoid potential legal or financial repercussions.