Which section of the Chem Dry Franchise Agreement discusses the grant of the franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
G SOFTWARE LICENSE AGREEMENT
EXHIBIT H COLLATERAL ASSIGNMENT OF LEASE
CHEM-DRY® FRANCHISE AGREEMENT
This Agreement is made and entered into, and effective on the Effective Date by and between CDI and FRANCHISEE.
1. GRANT OF FRANCHISE
A. ACKNOWLEDGEMENTS BY THE PARTIES
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- CDI has designed and developed a system and franchise opportunity for the operation of businesses using specialized equipment and products to perform carpet and upholstery/drapery cleaning, including area rug cleaning, tile and stone care, spot removal, applying anti-allergen and deodorizer and protective services, as well as such other services which may be specified from time to time, under the "CHEM-DRY" name and other trademarks ("CHEM-DRY Businesses"). CHEM-DRY Businesses have distinctive formats, methods, procedures, designs, layouts, standards and specifications, all of which may be improved, further developed or otherwise modified from time to time. CDI owns all rights to, interest in and goodwill of, and uses, promotes and licenses certain trade names, trademarks, trade dress, service marks and other commercial symbols, including, but not limited to, the service mark, trademark and trade name "CHEM-DRY" (the "Marks"). CDI has also designed and developed, and owns all rights to, certain specialized equipment and products for use in CHEM-DRY Businesses.
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- CDI grants franchises to persons who are willing to undertake the investment and effort to own and operate a CHEM-DRY Business offering the services CDI authorizes and using CDI's business formats, methods, procedures, designs, layouts, standards, specifications and Marks, as such things may exist from time to time, (the "Franchise System").
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- FRANCHISEE acknowledges that FRANCHISEE has read this Agreement and CDI's Franchise Disclosure Document and that FRANCHISEE understands and accepts the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain CDI's high standards of quality and service, as well as the uniformity of those standards at each CHEM-DRY Business and to protect and preserve the goodwill of the Marks. FRANCHISEE acknowledges that CDI has the right to restrict FRANCHISEE'S sources of goods and services, as provided in various sections in this Agreement. FRANCHISEE acknowledges that FRANCHISEE has conducted an independent investigation of the business contemplated by this Agreement and recognizes that it involves business risks and that the success of the venture is largely dependent upon the business abilities of FRANCHISEE. FRANCHISEE acknowledges and agrees that CDI's officers, directors, employees and agents act only in a representative and not in a personal capacity in their dealings with FRANCHISEE. FRANCHISEE further acknowledges that FRANCHISEE has not received or relied upon, any warranty or guaranty, express or implied, as to the potential revenues, profits or success of the franchise or policies made by CDI or its officers, directors, employees or agents that are contrary to the statements, if any, expressly made in CDI's Franchise Disclosure Document. FRANCHISEE further represents to CDI, as an inducement to its entry into this Agreement, that FRANCHISEE has made no misrepresentations in obtaining the franchise. FRANCHISEE further acknowledges that CDI has not made any representation, warranty, or other claim regarding the CHEM-DRY Business franchise opportunity, other than those made in this Agreement and CDI's Franchise Disclosure Document. FRANCHISEE represent and warrants to CDI that FRANCHISEE has independently and
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thoroughly evaluated this opportunity, including by using business professionals and advisors selected and engaged by FRANCHISEE, and has relied solely upon those evaluations in deciding to enter into this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, the grant of the franchise is discussed in Section 1 and Section C. Section 1 covers acknowledgements by both parties, stating that Chem Dry has designed a franchise system for businesses that use specialized equipment to perform cleaning services under the Chem Dry name. It also states that Chem Dry grants franchises to people willing to invest in and operate a Chem Dry business using Chem Dry's methods and trademarks. Franchisees acknowledge that they have read the agreement and the Franchise Disclosure Document and that they understand the terms and conditions.
Section C states that the franchisee has applied for a franchise to own and operate a Chem Dry business. It also states that the franchisee and owners represent that all information submitted was true, correct, and complete. Chem Dry grants the franchisee a non-exclusive franchise to use the marks and the franchise system to operate a Chem Dry business in the defined area.
This franchise is granted from the effective date of the agreement for a term beginning on the effective date and ending five years from the Payment Start Date as referenced in Section 8.B. of this Agreement, or, if this Agreement pertains to the transfer of an existing Chem-Dry Business or is a Renewal Agreement, ending five (5) years from the Effective Date of this Agreement. The franchisee must offer and perform carpet and area rug cleaning, upholstery cleaning, spot removal applying anti-allergen and deodorizer, and protecting services, including removing red stains, treating pet urine odor on carpets and imparting stain resistance to carpet fibers that Chem Dry mandates, and such other services which may from time to time be changed, specified, and/or directed by CDI.
For a prospective Chem Dry franchisee, this means understanding the specific services they are required to offer and the duration of their franchise agreement. It is important to note that the franchise is non-exclusive, meaning Chem Dry can grant other franchises in the same general area, although the franchisee will have a defined territory. The franchisee must also ensure all information provided during the application process is accurate, as the grant of the franchise is based on this information.