What is the payment deadline for purchases from Chem Dry or its affiliates?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to pay to CDI, or its affiliates, within fifteen (15) days after the effective date of the termination or expiration of this Agreement, or such later date that the amounts due to CDI are determined, all amounts owed to CDI, or its affiliates, including the unpaid balance of the Business Note and, as liquidated damages ("Liquidated Damages")
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees are required to pay Chem Dry or its affiliates all outstanding amounts within fifteen days of the termination or expiration of the franchise agreement. This includes the unpaid balance of the Business Note.
Additionally, franchisees must also compensate Chem Dry for liquidated damages. These damages are calculated as the Monthly Franchise Fee in effect at the time of termination, multiplied by the number of months remaining in the franchise term. This payment is due within the same 15-day timeframe.
Furthermore, franchisees are obligated to return any prepaid amounts to customers for services not yet rendered. This reimbursement to customers must also occur within fifteen days after the termination or expiration of the Franchise Agreement. This ensures that customers who have paid for services they will not receive due to the termination are promptly refunded.