During the term of the Chem Dry franchise, what activities are considered a breach of the non-competition covenant?

According to Chem Dry's 2024 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is restricted from having an interest in or performing approved services for a competitive business. A competitive business is defined as any business that provides or sells, or grants franchises or licenses to others to provide or sell, carpet or upholstery/drapery cleaning services or products, tile/stone care or other hard floor surface cleaning services or products, spot removal, or protective services or products, or any related ancillary services or products.

This means that while operating a Chem Dry franchise, a franchisee cannot simultaneously own or work for another company that offers similar cleaning services or sells related products. This restriction is in place to protect Chem Dry's market share and prevent franchisees from using the franchisor's resources and knowledge to benefit a competing business.

It is important for prospective franchisees to fully understand the scope of this non-competition covenant. If a franchisee violates this covenant, Chem Dry may have grounds to terminate the franchise agreement. Franchisees should carefully consider whether they have any existing business interests that could be construed as competitive before investing in a Chem Dry franchise.