Under what conditions can Chem Dry require a Chem Dry franchisee to take additional training at their own expense?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
e Initial Package includes training tuition for two people to attend training. CDI may charge tuition for additional trainees and for training associated with the transfer of an existing franchise. The tuition amount as of the Effective Date is $75.00 per day per attendee.
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- If CDI determines, in its sole discretion, that FRANCHISEE failed to satisfactorily complete the training program, CDI shall have the right to require that FRANCHISEE attend the next initial training program at FRANCHISEE'S expense (including tuition charged by CDI and all compensation, benefits, taxes, insurance, travel and living expenses incurred), or that FRANCHISEE view CDI's web-based training or other media and pass the accompanying test(s). If FRANCHISEE'S performance in the additional training program is unsatisfactory or if FRANCHISEE fails to complete the training, FRANCHISEE'S Business Note signed in connection with this Agreement will be accelerated and immediately due and payable and CDI shall have the right to terminate this Agreement effective immediately.
B. ONGOING TRAINING
- FRANCHISEE is required to complete at least one (1) in-person training course per year and the online training. The initial training will fulfill the training requirement for the calendar year in which this Agreement is dated.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if Chem Dry determines, in its sole discretion, that a franchisee has not satisfactorily completed the initial training program, Chem Dry has the right to require the franchisee to attend the next initial training program at the franchisee's expense. This expense includes tuition charged by Chem Dry, compensation, benefits, taxes, insurance, travel, and living expenses. Alternatively, Chem Dry can require the franchisee to view Chem Dry's web-based training or other media and pass the accompanying tests.
This condition means that franchisees must demonstrate competence during the initial training. If Chem Dry deems the franchisee's performance unsatisfactory, the franchisee will incur additional costs for further training. These costs can be significant, as they include not only the tuition fee of $75.00 per day per attendee but also all associated travel and living expenses. This policy incentivizes franchisees to take the initial training seriously and to ensure they meet Chem Dry's standards from the outset.
Furthermore, if the franchisee's performance in the additional training program remains unsatisfactory, or if the franchisee fails to complete the training, the franchisee's Business Note signed in connection with the Franchise Agreement will be accelerated and immediately due and payable. Chem Dry also retains the right to terminate the Franchise Agreement immediately. This underscores the importance of meeting Chem Dry's training requirements and the potential financial and contractual repercussions of failing to do so. Chem Dry may also require franchisees to be certified by successful completion of additional training for additional services offered.