How often can Chem Dry increase the minimum cleaning solution purchase amount?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
D SERVICES**
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- FRANCHISEE agrees to use only such Operating Assets and other equipment, cleaning solutions, supplies, promotional materials and business services which have either been approved by CDI or purchased from CDI, its affiliates or other sources, approved or designated by CDI from time to time. FRANCHISEE agrees to purchase all cleaning solutions only from CDI or its affiliates or approved or designated suppliers at the then current list price, plus applicable taxes, and to pay for all purchases no later than thirty (30) days from the invoice date. FRANCHISEE is required to purchase a minimum of $3,244.50 (increased not more than once each calendar year to reflect increases in The Metropolitan Area Consumer Index for Urban Consumers-All Items (1982-1984 = 100) as published by the U.S. Department of Labor or in a succes
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry can increase the minimum cleaning solution purchase amount no more than once each calendar year.
The minimum purchase amount is initially set at $3,244.50 per calendar year. Any increase is tied to the Metropolitan Area Consumer Index for Urban Consumers-All Items (1982-1984 = 100) published by the U.S. Department of Labor, or a successor index, also known as the Consumer Price Index.
This means a Chem Dry franchisee can expect the minimum amount they are required to spend on cleaning solutions to potentially increase annually, based on changes in the Consumer Price Index. This is a fairly standard practice, as it allows the franchisor to adjust for inflation and maintain consistent purchasing power.