Under what conditions can Chem Dry suspend or terminate a franchisee's account?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
or terms of the Lease without the prior written consent of the Franchisor. Any attempt at termination, modification or amendment of any of the terms of the Lease without such written consent is null and void.
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- Exercise of Remedies: In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
- a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
- b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
- c) to exclude the Franchisee, its agents or employees from the Site;
- d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the Franchised Business and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
- e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same;
- f) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals, replacements, alterations, additions, betterments and improvements to the Site or the Site that may seem judicious, in the sole discretion of the Franchisor; and
- g) to insure and reinsure the same for all risks incidental to the Franchisor's possession, operation and management thereof;
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, Item 22 addresses contracts related to franchise agreements, including conditions related to default, termination, and remedies available to Chem Dry. Specifically, if a franchisee defaults under the terms of their lease or the Franchise Agreement, Chem Dry has several options.
Chem Dry can take possession of the franchisee's site, either personally or through agents or attorneys. They can also enter and maintain possession of the site, including all furniture, fixtures, inventory, books, records, papers, and accounts, with or without notice or legal process. Chem Dry can exclude the franchisee, their agents, or employees from the site. Additionally, Chem Dry can act as the franchisee's attorney-in-fact to operate and manage the franchised business, taking actions deemed necessary to cure the default.
Chem Dry also has the right to cancel or terminate any unauthorized agreements or subleases entered into by the franchisee. They can disaffirm unauthorized agreements, subleases, or subordinated liens and make necessary repairs or improvements to the site. Furthermore, Chem Dry can insure and reinsure the site. Finally, Chem Dry can declare all of the franchisee's rights under the Franchise Agreement to be immediately terminated if the franchisee defaults under the lease and fails to cure the default within the applicable cure period.