How is the maximum number of Chem Dry franchises determined for a franchised area?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The number of franchises which can operate and perform CHEM-DRY Businesses within the Franchised Area at any given time is determined by dividing the current population of the area by
sixty thousand (60,000). The nearest whole number to the quotient (the "Maximum Number") is the maximum number of franchises that CDI may grant in the Franchised Area; provided, however, that, in addition, another franchisee or a third party designated by CDI may service national accounts in the Franchised Area if FRANCHISEE elects not to service a national account or if a national account elects not to do business with FRANCHISEE. The Franchised Area will be determined by CDI based on, among other things, population, population density, geographical terrain and market potential. Based on population changes, the Maximum Number may increase or decrease from time to time and may not remain constant; however, the Maximum Number only affects CDI's ability to grant franchises and no franchise will be terminated solely as a result of a decrease in the Maximum Number. FRANCHISEE is in compliance with this Agreement when no event or circumstance has occurred that will give CDI the right to terminate this Agreement under Section 15, whether or not CDI has given notice of default, non-compliance or termination to FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the maximum number of franchises allowed in a franchised area is determined by dividing the current population of that area by 60,000. The whole number nearest to the result of this division is the maximum number of Chem Dry franchises that Chem Dry may grant in that area.
However, Chem Dry retains the right to allow another franchisee or a third party to service national accounts within the franchised area if the franchisee chooses not to service a national account or if the national account prefers to work with someone else. The franchised area itself is determined by Chem Dry based on factors such as population, population density, geographical terrain, and market potential.
It's important to note that the maximum number of franchises can change over time due to population fluctuations. While this may affect Chem Dry's ability to grant new franchises, existing franchises will not be terminated solely because of a decrease in the maximum number allowed. This ensures that a Chem Dry franchisee's investment is somewhat protected from population shifts. The franchisee must remain in compliance with the franchise agreement to maintain their franchise rights.