Under what conditions can CDI terminate the Chem-Dry Certificate of Accommodation (COA)?

According to Chem-Dry's 2024 Franchise Disclosure Document, the Certificate of Accommodation (COA) is granted by CDI (presumably Chem-Dry, Inc.) to a franchisee as an exception to the standard requirement of operating franchises from individual office locations within their designated territories. This COA allows a franchisee to headquarter multiple franchises from a single office location.

The FDD states that CDI may terminate the COA with or without cause. If CDI decides to terminate the COA, it must provide the franchisee with a written notice 60 days in advance. Upon termination, the franchisee is required to move all franchise operations to office locations within the designated franchised areas for each franchise within the timeframe specified in CDI's notice.

This condition gives Chem-Dry significant flexibility and control over the COA. A franchisee operating under a COA needs to be aware that this agreement can be terminated at any time with 60 days' notice, potentially requiring them to establish multiple office locations. This could involve significant unexpected costs and logistical challenges for the franchisee.