For how long after the transfer date are Chem Dry franchisees restricted from certain activities?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE and its transferring Owners (and any spouses or other immediate family members) acknowledge in a writing delivered to CDI that each of them will not, for two (2) years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 16.D. below;
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a transferring franchisee and their owners (including spouses and immediate family) must agree in writing that they will not engage in activities prohibited in Section 16.D for two years after the transfer date. This restriction is a standard non-compete clause designed to protect Chem Dry's interests by preventing former franchisees from using their knowledge and experience to compete with the brand.
This non-compete agreement ensures that the seller does not immediately open a competing business and take away existing customers or trade secrets from the Chem Dry system. The buyer of the franchise can be reasonably assured that the seller will not undermine the business they just purchased.
Prospective franchisees should carefully review Section 16.D of the Chem Dry franchise agreement to fully understand the specific activities that are restricted during this two-year period. It is important to consider the implications of this restriction on future business opportunities before deciding to sell their Chem Dry franchise.