What items are Chem-Dry franchisees required to remove from a van before selling it?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees: (1) to maintain the condition and appearance of FRANCHISEE's van(s) according to the standards imposed by CDI from time to time and to maintain the condition of the equipment consistent with the image of a CHEM-DRY Business as a professionally operated service business; (2) that the van(s) shall not be used for any purpose other than the operation of the BUSINESS as described herein; (3) not to sell, donate, rent, lease or otherwise transfer any of the van(s) without first removing any and all signs, emblems, lettering and logos indicating an association with CHEM-DRY Businesses, and/or other Marks, from the van(s).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 51)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee must remove all branding elements from a van before selling or transferring it. Specifically, the franchisee must remove any signs, emblems, lettering, and logos that indicate an association with Chem-Dry. This requirement ensures that the Chem-Dry brand is protected and that the general public is not confused into thinking that a non-franchised business is part of the Chem-Dry franchise system.
This stipulation is fairly standard in franchising. Franchisors want to maintain control over their brand image and prevent unauthorized use of their trademarks. By requiring the removal of all Chem-Dry branding from vehicles before sale, Chem-Dry ensures that the van cannot be mistaken for an active Chem-Dry franchise after it is sold.
For a prospective Chem-Dry franchisee, this means that when the time comes to sell a company van, they will need to factor in the cost and effort of removing all Chem-Dry related signage and logos. Failure to do so would be a breach of the franchise agreement and could potentially lead to legal repercussions from Chem-Dry.