Is the maximum number of Chem Dry franchises in a franchised area subject to change?
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 that can operate in a franchised area is subject to change. The number of franchises is determined by dividing the current population of the area by 60,000. The result, rounded to the nearest whole number, is the maximum number of Chem Dry franchises that may be granted in that area.
This maximum number can fluctuate based on population changes within the franchised area. While the number may increase or decrease over time, Chem Dry states that no franchise will be terminated solely due to a decrease in the maximum number of franchises allowed.
Chem Dry also retains the right to allow another franchisee or a third party to service national accounts within a franchisee's area if the franchisee chooses not to service the account or if the national account prefers to work with someone else. This could effectively increase the number of service providers in an area beyond the calculated maximum.