Under what circumstances can Chem Dry modify the Terms of Service agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI has designed and developed a system and franchise opportunity for the operation of businesses using specialized equipment and products to perform carpet and upholstery/drapery cleaning, including area rug cleaning, tile and stone care, spot removal, applying anti-allergen and deodorizer and protective services, as well as such other services which may be specified from time to time, under the "CHEM-DRY" name and other trademarks ("CHEM-DRY Businesses").
CHEM-DRY Businesses have distinctive formats, methods, procedures, designs, layouts, standards and specifications, all of which may be improved, further developed or otherwise modified from time to time.
In connection with the operation of the BUSINESS, FRANCHISEE must offer and perform carpet and area rug cleaning, upholstery cleaning, spot removal applying anti-allergen and deodorizer, and protecting services, including removing red stains, treating pet urine odor on carpets and imparting stain resistance to carpet fibers that we mandate, and such other services which may from time to time be changed, specified, and/or directed by CDI (the "Required Services").
FRANCHISEE acknowledges that CDI and its affiliates reserve the right to integrate their business and operations in the future and use common facilities, technology or platforms to provide training, business information systems, supply chain and other support elements. FRANCHISEE acknowledges that the referral of business between FRANCHISEE and CDI's affiliates and their franchisees would be mutually beneficial. Therefore, in the event CDI and/or its affiliates establish a referral program, FRANCHISEE agrees to notify CDI of any potential users of the affiliate services known by FRANCHISEE in accordance with terms, conditions, and procedures for such referrals established by CDI and its affiliates from time to time in the Manual or otherwise in writing. CDI reserves the right to manage, administer, establish and enforce or waive rules and policies, modify and discontinue any such referral program in its sole discretion.
CDI and FRANCHISEE may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or another effective date stated in the notice of waiver. Any waiver granted by CDI shall be without prejudice to any other rights CDI, or its affiliates, may have, and will be subject to continuing review by CDI and may be revoked, in CDI's sole discretion, at any time and for any reason, effective upon delivery to FRANCHISEE of ten (10) days prior written notice.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
Based on the 2024 Chem Dry Franchise Disclosure Document, Chem Dry has the ability to modify various aspects of its franchise system. Specifically, Chem Dry can improve, further develop, or otherwise modify the distinctive formats, methods, procedures, designs, layouts, standards, and specifications of Chem-Dry Businesses from time to time. This means that Chem Dry franchisees must stay updated with any changes Chem Dry implements to the operational standards and business model.
Chem Dry also reserves the right to change, specify, and/or direct the services that franchisees are required to offer. These are referred to as the "Required Services" in the franchise agreement. This allows Chem Dry to adapt to market demands or introduce new service offerings, which franchisees must then incorporate into their businesses. Franchisees need to be prepared to adapt their service offerings as directed by Chem Dry.
Furthermore, Chem Dry retains the right to manage, administer, establish, enforce, or waive rules and policies, and modify or discontinue any referral program in its sole discretion. This gives Chem Dry considerable control over referral programs and the ability to change them as it sees fit. Franchisees should be aware that any benefits or requirements associated with referral programs can be altered by Chem Dry at any time. Chem Dry and its franchisees may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under the Agreement. Any waiver granted by Chem Dry shall be without prejudice to any other rights Chem Dry, or its affiliates, may have, and will be subject to continuing review by Chem Dry and may be revoked, in Chem Dry's sole discretion, at any time and for any reason, effective upon delivery to FRANCHISEE of ten (10) days prior written notice.