What is the nonrefundable administration fee for Chem-Dry franchisees to headquarter all franchises from a single office location, if the COA is not signed with the sale of a new franchise?

According to Chem-Dry's 2024 Franchise Disclosure Document, a franchisee who wishes to headquarter multiple franchises from a single office location must enter into a Consolidated Office Agreement (COA) with Chem-Dry, Inc. If this COA is not signed at the time of a new franchise sale, the franchisee is required to pay a nonrefundable administration fee. This fee compensates Chem-Dry for the exception to the standard requirement that each franchise operate from its own designated office location.

The nonrefundable administration fee for this privilege is $500.00. This fee is consideration for the exception granted by Chem-Dry to allow the franchisee to operate multiple franchises from a single office, which deviates from the standard franchise agreement terms. This fee is non-refundable, meaning that once paid, it will not be returned to the franchisee under any circumstances.

This COA expires concurrently with the Franchise Agreement and is non-renewable and non-transferrable. If a franchisee wishes to continue operating under a consolidated office arrangement, they must notify Chem-Dry at least sixty days before the COA's expiration to potentially enter into a new agreement, which would be subject to the then-current terms and fees. Chem-Dry retains the discretion to decline entering into subsequent COAs. If a new COA is not established upon expiration, the franchisee must relocate all franchise operations to offices within their designated franchised areas before the COA's expiration date to avoid breaching the franchise agreement.