Under what condition can Chem Dry suspend services to a franchisee in North Dakota?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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- You acknowledge that your failure to pay the Initial Fee when due is a material default under the Franchise Agreement and the we can suspend providing services to you, and cause approved suppliers to suspend providing goods and services to you, until we receive the Initial Fee.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee in North Dakota may have services suspended if they fail to pay the initial franchise fee when it is due. Specifically, Chem Dry can suspend providing services to the franchisee and can cause approved suppliers to suspend providing goods and services until the initial fee is paid. This condition is outlined in the North Dakota addendum to the franchise agreement.
This provision means that prompt payment of the initial franchise fee is critical for a Chem Dry franchisee in North Dakota to avoid disruption of services and supplies necessary to operate the franchise. The initial fee is a one-time payment typically required when signing the franchise agreement, and it covers Chem Dry's initial costs of setting up the franchise.
It is important for prospective franchisees to understand the payment terms and ensure they have sufficient funds available to pay the initial fee on time. Failure to do so can immediately impact their ability to start or continue operating their Chem Dry franchise.