What standards and qualifications must a proposed transferee meet for a Chem Dry franchise?

• 1. In any other proposed transfer (including a transfer of this Agreement, a transfer of a controlling ownership interest in FRANCHISEE or one of its Owners, or a transfer which is one of a series of transfers (regardless of the time period over which these transfers take place), all of the following conditions must be met as a condition for Franchisor to approve the Transfer:
  • a. you are in full compliance with this Agreement and all other agreements between you and us, our affiliates, or our designated/approved suppliers and vendors, and you have paid all accrued monetary obligations to us, our affiliates, and our designated/approved suppliers and vendor;
  • b. the proposed transferee and its direct and indirect equity owner(s) (if the transferee is an Entity) shall submit a complete CDI franchise application to CDI and meet CDI's then applicable standards and qualifications for a new BUSINESS;

• r. the transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;

• s.

FRANCHISEE has corrected any existing deficiencies of the BUSINESS of which CDI has notified FRANCHISEE, and/or (ii) CDI permits, and the transferee agrees (if the transfer is of this Agreement) to upgrade the BUSINESS (including the equipment and the van(s) to be transferred to the transferee) in accordance with CDI's then current requirements and specifications for entering or transferred CHEM-DRY Businesses within the time period CDI specifies following the effective date of the transfer;

• t.

FRANCHISEE and its transferring Owners (and any spouses or other immediate family members) acknowledge in a writing delivered to CDI that each of them will not, for two (2) years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 16.D. below;

• u. e have approved the material terms and conditions of the transfer, the form or purchase and sale agreement, and determined that the price and terms of payment will not adversely affect the transferee's operation of the BUSINESS.

The purchase agreement between FRANCHISEE and the transferee must include: (a) a dollar breakdown of the sale price allocated to goodwill, covenant not to compete, van(s), cleaning equipment, cleaning supplies, and office equipment and supplies; and (b) a statement that FRANCHISEE has made a full disclosure to the transferee and that the parties have has agreed upon the disposition of all of FRANCHISEE'S outstanding obligations and accounts receivable;

• 1. Unless you are an existing franchisee, CDI shall furnish an initial training program on the operation of a CHEM-DRY Business which FRANCHISEE is required to complete to CDI's satisfaction prior to FRANCHISEE'S commencement of BUSINESS operations. CDI agrees to provide FRANCHISEE with initial training on how to (1) mix and apply cleaning solutions, use equipment in cleaning the work product and performing the services required for a CHEM-DRY business under normal working conditions; (2) compute estimates; (3) solicit and maintain business; and (4) replace inventory and otherwise enter into and conduct a CHEM-DRY Business. If FRANCHISEE purchases a new franchise from CDI, FRANCHISEE will be required to attend a training session Logan, Utah, or at another location designated by CDI prior to operating the CHEM-DRY Business. If FRANCHISEE is a transferee, FRANCHISEE must complete the training required in this section 3.A. within ninety (90) days of FRANCHISEE'S execution of this Agreement by attending a training session in Logan, Utah or at another location designated by CDI.
• 1. FRANCHISEE is responsible for all compensation, benefits, taxes, insurance, travel expenses and living expenses which are incurred in connection with attending the training program. The Initial Package includes training tuition for two people to attend training. CDI may charge tuition for additional trainees and for training associated with the transfer of an existing franchise. The tuition amount as of the Effective Date is $75.00 per day per attendee.

Source: Item 23 — Receipts (FDD pages 68–264)