Under what conditions is the Fine for Improper Advertising payable for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ions |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| during the term of the Franchise Agreement with the first attendance occurring during the first three years of the agreement term. | |||
| Month-to Month Post Term Franchise Fee | Two times the then-current monthly 1 Franchise Fee | 10th day of month | Begins the 10th of the month following the expiration of your Franchise Agreement and continues each month you continue to operate the Business until you sign a successor Franchise Agreement, or you cease operating the Business. This fee must be paid via electronic funds transfer. |
| Administrative Fee | Then current fee which is presently $500 per transaction | As incurred | Due when you request or when your actions require us to amend the Franchise Agreement or change the d/b/a name of your Chem Dry franchise. |
| Fine for Improper Advertising | Then current fee which is presently $2,000, per violation1 | As incurred | Payable if you use any promotional materials which do |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee is subject to a Fine for Improper Advertising if they use any promotional materials that do not comply with Chem Dry's guidelines. The amount of this fine is the then-current fee, which is presently $2,000 per violation. This fee is incurred as needed and is payable to Chem Dry or its designee and is non-refundable.
This means that a Chem Dry franchisee must ensure that all advertising and promotional materials used in their business adhere strictly to the standards and guidelines set by Chem Dry. Failure to do so can result in a $2,000 fine for each instance of non-compliance.
For a prospective franchisee, this highlights the importance of understanding and adhering to Chem Dry's advertising guidelines. It also emphasizes the need for careful review and approval of all promotional materials to avoid incurring these fines. Franchisees should maintain open communication with Chem Dry to ensure compliance and seek clarification on any unclear guidelines.