Who is responsible for billings to and collections from national accounts for a Chem-Dry franchise?

According to Chem-Dry's 2024 Franchise Disclosure Document, the franchisee is responsible for all billings to and collections from national accounts. However, Chem-Dry will remit payments received from completed national accounts that the franchisee services. Chem-Dry deducts a handling and processing fee ranging from 15% to 25% of the amount collected, depending on the terms of the national account. They also deduct any payments for state sales or other taxes Chem-Dry is required to pay.

This means that while the Chem-Dry franchisee handles the initial billing and collections, Chem-Dry manages the payments from these national accounts, providing a level of administrative support. The franchisee needs to factor in the handling and processing fee, which can significantly impact the revenue received from national accounts. Understanding the specific terms of each national account is crucial to accurately forecast potential earnings.

Participation in national account programs is generally required, but a Chem-Dry franchisee can request to be relieved of this responsibility. The franchisee must submit a written request stating the reason for opting out, and Chem-Dry must agree to the request. However, participation in National Accounts programs may require the franchisee to complete an approval process required by the national account entity. A national account may also elect not to do business with the franchisee, or Chem-Dry could determine the franchisee may no longer service a national account. In any of these events, CDI or a third party may provide the necessary services.

Chem-Dry franchisees are also responsible for customer complaints resulting from work performed on National Accounts. If Chem-Dry is required to resolve any customer service issues, the franchisee will be required to reimburse Chem-Dry for any expenses, including refunds or legal fees, incurred in resolving the issue. This underscores the importance of maintaining high service quality and addressing customer concerns promptly to avoid additional costs.