Is initial training required for Chem Dry franchisees who are existing franchisees?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ndards.
Subject to FRANCHISEE'S compliance with these conditions, FRANCHISEE agrees to commence operation of the BUSINESS no later than ninety (90) days after the effective date of this Agreement.
3. TRAINING AND GUIDANCE
A. INITIAL AND NEW BUYER TRAINING
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- Unless you are an existing franchisee, CDI shall furnish an initial training program on the operation of a CHEM-DRY Business which FRANCHISEE is required to complete to CDI's satisfaction prior to FRANCHISEE'S commencement of BUSINESS operations. CDI agrees to provide FRANCHISEE with initial training on how to (1) mix and apply cleaning solutions, use equipment in cleaning the work product and performing the services required for a CHEM-DRY business under normal working conditions; (2) compute estimates; (3) solicit and maintain business; and (4) replace inventory and otherwise enter into and conduct a CHEM-DRY Business. If FRANCHISEE purchases a new franchise from CDI, FRANCHISEE will be required to attend a training session Logan, Utah, or at another location designated by CDI prior to operating the CHEM-DRY Business. If FRANCHISEE is a transferee, FRANCHISEE must complete the training required in this section 3.A. within ninety (90) days of FRANCHISEE'S execution of this Agreement by attending a training session in Logan, Utah or at another location designated by CDI.
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- FRANCHISEE is responsible for all compensation, benefits, taxes, insurance, travel expenses and living expenses which are incurred in connection with attending the training program. The Initial Package includes training tuition for two people to attend training. CDI may charge tuition for additional trainees and for training associated with the transfer of an existing franchise. The tuition amount as of the Effective Date is $75.00 per day per attendee.
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- If CDI determines, in its sole discretion, that FRANCHISEE failed to satisfactorily complete the training program, CDI shall have the right to require that FRANCHISEE attend the next initial training program at FRANCHISEE'S expense (including tuition charged by CDI and all compensation, benefits, taxes, insurance, travel and living expenses incurred), or that FRANCHISEE view CDI's web-based training or other media and pass the accompanying test(s). If FRANCHISEE'S performance in the additional training
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, initial training is generally required for new franchisees. However, if you are an existing Chem Dry franchisee and purchase a new franchise, you are still required to attend a training session in Logan, Utah, or another location designated by Chem Dry. If you are a transferee, you must complete the required training within 90 days of executing the agreement.
The Chem Dry franchise agreement stipulates that the franchisee is responsible for all compensation, benefits, taxes, insurance, travel expenses, and living expenses incurred while attending the training program. The initial package includes training tuition for two people. Chem Dry may charge tuition for additional trainees and for training associated with the transfer of an existing franchise; as of the effective date, the tuition amount is $75.00 per day per attendee.
Chem Dry retains the discretion to determine if a franchisee has satisfactorily completed the training program. If Chem Dry determines that the franchisee has not met the required standards, it has the right to require the franchisee to attend the next initial training program at the franchisee's expense. This includes tuition charged by Chem Dry and all associated compensation, benefits, taxes, insurance, travel, and living expenses. Alternatively, Chem Dry may require the franchisee to view web-based training or other media and pass the accompanying tests.
If the franchisee's performance in the additional training program remains unsatisfactory, or if the franchisee fails to complete the training, the Business Note signed in connection with the agreement will be accelerated and immediately due and payable. Additionally, Chem Dry reserves the right to terminate the agreement, effective immediately. This underscores the importance of fully engaging with and successfully completing the required training programs to maintain good standing as a Chem Dry franchisee.