What information obtained during inspections and audits can Chem Dry disclose to third parties?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI may, but has no obligation to, review all information regarding the BUSINESS that FRANCHISEE gives the transferee, including the purchase agreement, correct any information that CDI believes is inaccurate, and give the transferee copies of any reports that FRANCHISEE has given CDI or CDI has made regarding the BUSINESS.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry may review all information regarding the business that the franchisee provides to a potential transferee. This includes the purchase agreement. Chem Dry has the option to correct any information it believes is inaccurate.
Furthermore, Chem Dry can provide the transferee with copies of any reports that the franchisee has given to Chem Dry, or that Chem Dry has created regarding the business. This disclosure is at Chem Dry's discretion, as they have no obligation to do so.
This clause protects Chem Dry by ensuring that potential buyers receive accurate information about the franchise. It also allows Chem Dry to maintain control over the transfer process and uphold brand standards. For a prospective franchisee, this means that when selling their Chem Dry franchise, they should be prepared for Chem Dry to be involved in the disclosure of business information to the buyer.