If the Chem Dry transferee agrees, what upgrades might be required to the business being transferred?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
orth in Sections 6 or 16;
- q. to the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer;
- r. the transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
- s. FRANCHISEE has corrected any existing deficiencies of the BUSINESS of which CDI has notified FRANCHISEE, and/or (ii) CDI permits, and the transferee agrees (if the transfer is of this Agreement) to upgrade the BUSINESS (including the equipment and the van(s) to be transferred to the transferee) in accordance with CDI's then current requirements and specifications for entering or transferred CHEM-DRY Businesses within the time period CDI specifies
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a transferee in a Chem Dry franchise agreement may be required to upgrade the business being transferred. If the existing franchisee has any deficiencies that Chem Dry has notified them of, those deficiencies must be corrected before the transfer can proceed. Alternatively, Chem Dry may allow the transfer to proceed if the transferee agrees to upgrade the business.
These upgrades can include the equipment and vans associated with the Chem Dry business. The upgrades must align with Chem Dry's current requirements and specifications for new or transferred Chem Dry businesses. The timeframe for completing these upgrades will be specified by Chem Dry following the transfer's effective date.
Furthermore, the transferee must purchase or obtain all equipment that Chem Dry requires to operate a Chem Dry business if it is not already included in the transaction. This may include proprietary equipment related to the franchise. This ensures that all Chem Dry franchises meet the brand's standards and can provide the services expected of them.