What might trigger Chem Dry to modify the Chem Dry agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
t governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.), this Agreement will be governed by the laws of the State of Tennessee.
- (b) Binding Effect. This Agreement is binding upon the parties hereto and their respective executors, administrators, heirs, assigns and successors in interest, and will not be modified except by written agreement signed by Franchisee and CDI.
- (c) Construction. The preambles are a part of this Agreement, which constitutes the entire agreement of the parties relating to its subject matter. The headings of the several sections and paragraphs hereof are for convenience only and do not define, limit or construe the contents of the sections or paragraphs.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the franchise agreement can only be modified through a written agreement signed by both the franchisee and Chem Dry, Inc. This ensures that any changes to the original agreement are mutually agreed upon and documented, protecting both parties' interests.
For franchisees in Virginia, the Chem Dry agreement is subject to specific statutory requirements. Specifically, if any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act, that provision may not be enforceable. This means that Chem Dry may need to modify the enforcement of certain termination clauses in Virginia to comply with state law.
This requirement for written modification provides a level of security and clarity for franchisees. It prevents unilateral changes to the agreement by Chem Dry and ensures that franchisees are aware of and consent to any modifications. Prospective franchisees should carefully review the franchise agreement and any addenda to understand their rights and obligations, as well as the specific legal requirements in their state.