What standards must a Chem Dry franchisee follow regarding advertising and promotion?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE agrees to operate and conduct business from a single location within the nonexclusive Franchised Area from which FRANCHISEE may operate as many crews, teams, sales forces and vans as necessary. In the event FRANCHISEE has multiple franchises, a separate cleaning crew must be available for each franchise to perform requested work within the Franchised Area for the Approved Services.
FRANCHISEE agrees to advertise and solicit business for the authorized services within the Franchised Area only. FRANCHISEE further agrees that FRANCHISEE will accept and perform only those jobs that are within the Franchised Area.
If FRANCHISEE accepts and performs a job outside of the Franchised Area, CDI will have the right to impose on FRANCHISEE a fine of $5,000 for each occurrence, due and payable upon invoice, or the right to terminate this Agreement.
FRANCHISEE agrees to, at all times, faithfully, honestly and diligently perform his or her obligations hereunder and to continuously exert best efforts to effectively promote and enhance the BUSINESS and develop and service customers within the Franchised Area.
FRANCHISEE agrees to list the BUSINESS in the principal regular (white pages) and telephone directories distributed within the BUSINESS' Franchised Area, and in such telephone or internet directory categories as are specified by CDI.
CDI may, at its option, by written notice to FRANCHISEE, convert and update this telephone directory listing obligation to digital and electronic advertising.
FRANCHISEE'S local advertising and promotion must follow CDI's guidelines.
FRANCHISEE agrees that all advertising, promotion, and marketing will be completely clear, factual, and not misleading or incomplete, and conform to both the highest standards of ethical advertising and marketing and the advertising and marketing policies that CDI prescribes from time to time.
FRANCHISEE must follow CDI standards and specifications regarding use of social media in any way that references the Marks or involves the franchise. "Social media" includes personal blogs, common social networks, like Facebook , professional networks, like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools. CDI's approval of FRANCHISEE'S separate website is conditioned on CDI's ownership of the URL for the separate website and FRANCHISEES compliance with the Advertising Rules & Guidelines. In the event that FRANCHISEE uses any advertising or promotional materials which are not in compliance with CDI's guidelines, CDI may: (a) charge FRANCHISEE a fine of $2,000 for each occurrence; or (b) terminate this Agreement. FRANCHISEE will pay such fine when invoiced.
Recognizing the value of advertising and marketing to the development of goodwill and the public image of Chem-Dry Businesses, CDI has established a Brand Marketing Fund (the "BMF") for the advertising, marketing and public relations programs and materials CDI deems appropriate to promote the Chem-Dry brand.
FRANCHISEE agrees to contribute a continuing, non-refundable, monthly amount between $100 and $300 as determined by CDI (the "BMF Contribution").
The BMF Contribution can be increased to a maximum of $300 upon 30 days prior written notice from CDI to all FRANCHISEES.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees must adhere to specific guidelines for advertising and promotion. Chem Dry requires franchisees to list their business in the principal regular (white pages) and telephone directories within their franchised area, under categories specified by Chem Dry. This obligation may be updated to digital and electronic advertising at Chem Dry's discretion. Franchisees must ensure that all advertising, promotion, and marketing efforts are clear, factual, and not misleading, conforming to ethical standards and Chem Dry's prescribed policies.
Chem Dry also sets standards for social media use related to the brand, including blogs, social networks like Facebook and LinkedIn, and platforms like Twitter. Franchisee websites are subject to Chem Dry's approval, contingent on Chem Dry owning the URL and the franchisee complying with advertising rules and guidelines. Failure to comply with Chem Dry's advertising or promotional guidelines may result in a fine of $2,000 per occurrence or termination of the franchise agreement.
To support brand development, Chem Dry has established a Brand Marketing Fund (BMF). Franchisees are required to contribute a monthly amount between $100 and $300, as determined by Chem Dry, with the potential for increases up to a maximum of $300 with 30 days' notice. This fund is used for advertising, marketing, and public relations programs intended to benefit the Chem Dry system. Chem Dry manages the BMF and uses it for activities such as market research, marketing technology, customer service programs, media purchases, and advertising production. Franchisees are also required to advertise and solicit business only within their designated franchised area and can face a fine of $5,000 or termination for performing jobs outside this area.