What standards must a Chem-Dry franchisee's vehicle comply with?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CTS AND SERVICES**
Required purchases
You must own, purchase or lease one or more white cargo van(s) suitable for the purpose of transporting various equipment, supplies and materials needed to operate a Chem-Dry Business. The van must comply with standards of appearance, maintenance and repair a consumer would expect from a professionally operated service business and meet all of the current Advertising Rules and Guidelines in the Manual regarding type, graphics and markings. The van must be a clean, well-maintained (operating properly, free from visible dents, scratches and damage), with the proper graphics package.
CDI has negotiated with an insurance broker to provide insurance coverage to you according to our specifications at a discounted rate. You are not required to use this insurance broker; however, you must obtain and maintain the following minimum business liability coverage as well as vehicle liability coverage as a condition for receiving or maintaining a franchise:
- The minimum amount of business (general) liability coverage required is $1,000,000 per occurrence.
- The minimum amount of $100,000/$400,000/$75,000 (or $500,000 Combined Single Limit) is required for the vehicle liability coverage. All non-owned or hired vehicles must be insured with the same limits.
- CDI, its parents, and BFG National Accounts (and their officers, directors, employees, agents and affiliates and subsidiaries) must be named as additional insureds on both the General Liability and Vehicle Liability insurance policies.
- The business liability insurance policy must state that the work product is covered at a minimum of $50,000 per occurrence, or that there is no "workmanship" or "care, custody, and control" exclusion.
- You must also have Workers Compensation insurance based on statutory requirements.
You must submit to us an acceptable Certificate of Insurance for the Business, any vehicles used in the business and the workers compensation coverage required in your state within 30 days after you and we sign the Franchise Agreement and then annually prior to the expiration of your insurance coverage showing renewal or replacement with coverage conforming to our insurance requ
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees must own, purchase, or lease at least one white cargo van suitable for transporting equipment and supplies. The van's appearance, maintenance, and repair must meet the standards expected of a professionally operated service business. This means the vehicle should be clean, well-maintained, and free from visible damage like dents or scratches.
In addition to general maintenance and appearance, the Chem-Dry van must adhere to the brand's advertising rules and guidelines as outlined in the manual. This includes specific requirements for the type of vehicle, graphics, and markings displayed on the van. The purpose of these standards is to ensure a consistent and professional brand image is presented to the public.
Chem-Dry also mandates minimum insurance coverage for vehicles used in the business. Franchisees must maintain vehicle liability coverage of at least $100,000/$400,000/$75,000 (or $500,000 Combined Single Limit). Furthermore, Chem-Dry, its parents, and BFG National Accounts must be named as additional insureds on the vehicle liability insurance policy. Franchisees must provide a Certificate of Insurance to Chem-Dry within 30 days of signing the Franchise Agreement and annually thereafter, demonstrating compliance with these insurance requirements.