What information is included in the Chem Dry Equipment Purchase Schedule?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement between Franchisee and CDI for Franchisee's operation of a Chem-Dry® Carpet Cleaning business franchise (the "Business"). In consideration of the mutual promises and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which the parties mutually acknowledge, the parties mutually agree and intend to be legally bound as follows:
EQUIPMENT PURCHASE. Franchisee agrees to purchase from CDI and CDI agrees to sell to Franchisee the tangible equipment listed on the Summary Page on the payment terms set forth in the Schedule. The equipment purchased under this Agreement shall be referred to as the "Equipment." To secure Franchisee's obligations to pay CDI for the Equipment, in the event CDI financed any portion of the purchase of the Equipment, and to dispose of the Equipment in accordance with the Franchise Agreement, Franchisee has granted to CDI the security interest in the Equipment set forth herein.
SHIPMENT, TITLE & RISK OF LOSS. CDI will arrange for shipment of the Equipment on the Schedule to Franchisee. Risk of loss and title to the Equipment transfers to Franchisee upon delivery, subject to any security interest of CDI retained under this Agreement. Franchisee shall inspect each shipment promptly upon receipt and will be deemed to accept the Equipment as conforming to the Schedule unless any defects or deficiencies are noted to CDI within 2 business days after delivery. Franchisee agrees, if no defects or deficiencies are reported within this time period, all sales are final.
WARRANTIES.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Equipment Purchase Schedule outlines the equipment a franchisee agrees to purchase from Chem Dry. It also secures the franchisee's obligation to pay for the equipment if Chem Dry finances any portion of the purchase. The schedule includes a Summary Page that lists the specific tangible equipment being purchased and the payment terms associated with it.
The document specifies that the Equipment Sales and Security Agreement governs the Equipment Purchase Schedule. If the equipment is not proprietary to Chem Dry or does not bear any Chem Dry branding, the requirements of paragraph 6 of the Equipment Sales and Security Agreement are waived. The franchisee is responsible for inspecting the equipment upon delivery and reporting any defects or deficiencies to Chem Dry within two business days; otherwise, the sale is considered final.
Chem Dry also has the right to repurchase equipment based on a provided table, assuming reasonable wear and tear and regular maintenance. If components are missing or there is excessive damage, Chem Dry reserves the right to adjust the repurchase price accordingly. The original total equipment price will be reduced to the applicable percentage based on the time elapsed after the original purchase.