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What are the specific obligations of a

Chem_Dry Franchise · 2024 FDD

Answer from 2024 FDD Document

greements and in other items of this disclosure document.

Obligation Section in Agreement Item in Disclosure Document
(a) Site selection and None None
acquisition/lease
(b) Pre-opening purchases/leases Section 2A, 2B, 2C, 2D, and the Summary Page of Franchise Agreement; Section 1 of Software License Agreement; Section 1 of Equipment Agreement; and the Business Note Items 5, 7, 8, 10 and 11
(c) Site development and other pre-opening requirements Sections 2A, 2B, 2C, and 2D of Franchise Agreement; Sections 1, 2, and 3 of Software License Agreement; and the Business Note Items 5, 6, 7, 8, 10 and 11
(d) Initial and ongoing training Sections 3A and 3B of Franchise Agreement and 6 of Software License Agreement Items 6, 7 and 11

Obligation Section in Agreement Item in Disclosure Document
(e) Opening Section 2D of Franchise Agreement; Section 1 of Software License Agreement Item 11
(f) Fees Sections 3, 8, 9, 10, 12, 13C (7), 13E (10), and the Summary Page of Franchise Agreement, Sections 12 and 13 of Software License Agreement and Schedule 1 of Equipment Agreement; and the Business Note Items 5, 6, 7 and 11
(g) Compliance with standards and policies/Operations Manual Sections 2D, 3C and 9C of Franchise Agreement; Sections 1, 2, and 5 of Software License Agreement; and the Business Note Item 11
(h) Trademarks and proprietary information Section 4 of Franchise Agreement; Sections 2 and 15 of Software License Agreement Items 13 and 14
(i) Restrictions on products/services offered Section 9A and 9B of Franchise Agreement; Sections 4, 5, 16, and 18 of Software License Agreement Items 8, 11, 12 and 16
(j) Warranty and customer service Section 9A-9C of the Franchise None
requirements Agreement and Section 12
(k) Territorial development and Section 1C and 1D of Franchise Item 12
sales quotas Agreement
(l) On-going product/service purchases Sections 9A and 9B of Franchise Agreement and sections 7 and 11 of the Software License Agreement Items 7, 8 and 11
(m) Maintenance, appearance and remodeling requirements Section 14A of Franchise Agreement and Section 2 of the Software License Agreement Items 8 and 11
(n) Insurance Section Items
9E of Franchise Agreement 7 and 8

Obligation Section in Agreement Item in Disclosure Document
(o) Advertising Section 10 of Franchise Agreement Items 5, 6, 7 and 11
(p) Indemnification Section 7 of Franchise Agreement and Sections 7, 13 and 20 of the Software License Agreement Item 6
(q) Owner's Participation/ Management/Staffing Section 9D of Franchise Agreement Items 11 and 15
(r) Records/reports Section 11 of Franchise Agreement Items 6 and 11
(s) Inspections/audits Section 12 of Franchise Agreement Items 6 and 11
(t) Transfer Section 13 of Franchise Agreement, sections 18 and 19 of the Software License Agreement, and 5 of Equipment Agreement Items 6, 16, and 17
(u) Successor Section 14 of Franchise Agreement and Sections 18 and 19 of the Software License Agreement, Items 6 and 17
(v) Post-termination obligations Section 16 of Franchise Agreement, 5 of Equipment Agreement, and the Business Note Item 17
(w) Non-competition covenants Sections 6 and 16 of Franchise Item
Agreement 17
(x) Dispute resolution Section 17F of Franchise Agreement and the Business Note Item 17
(y) Costs/attorneys' fees Section 17E of Franchise Agreement and the Business Note Items 6 and 10

ITEM 10 FINANCING

CDI has no obligation to provide you with any financing for any portion of the Initial Fee. CDI may finance through the Business Note up to 40% of the Initial License Fee portion of the Initial Fee for

franchisees with credit standing acceptable to CDI. We do not receive payment from any person or persons for the placement of financing with a third-party lender.

What This Means (2024 FDD)

According to Chem-Dry's 2024 Franchise Disclosure Document, Item 9 outlines a franchisee's principal obligations under the franchise and other agreements. This item refers to specific sections within the franchise agreement and other related documents, providing a roadmap for franchisees to understand their commitments.

The obligations span various aspects of the business, from pre-opening activities to ongoing operations. These include site selection, pre-opening purchases, site development, initial and ongoing training, opening the business, and paying various fees. Franchisees must also adhere to Chem-Dry's standards and policies, protect trademarks and proprietary information, and comply with restrictions on products/services offered.

Further obligations include meeting warranty and customer service requirements, fulfilling territorial development and sales quotas, purchasing products/services from approved sources, maintaining the appearance of the premises, and securing adequate insurance coverage. Franchisees are also obligated to participate in advertising, indemnify Chem-Dry against certain claims, manage their staff effectively, maintain accurate records, and allow inspections and audits. Finally, the obligations cover aspects like transferring the franchise, succession planning, post-termination duties, non-competition covenants, dispute resolution, and responsibility for costs and attorneys' fees.

Chem-Dry franchisees should carefully review Item 9 in conjunction with the referenced sections of the Franchise Agreement and related documents to fully understand their obligations. This comprehensive overview helps ensure compliance and sets the stage for a successful franchise operation.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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