Under what section of the CFRA will Chem Dry exercise its right to terminate the Chem Dry Franchise Agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
to its terms.
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- California law may not enforce the choice of Tennessee law provision in Section 17.H of the Franchise Agreement.
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- California Business and Professions Code Sections 20000 through 20043 ("CFRA") provide rights to the franchisee concerning termination and non-renewal of the franchise. If the Franchise Agreement is inconsistent with this law, the law will control.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry will exercise its right to terminate the Franchise Agreement in accordance with CFRA Section 20020. This is stated within the California-specific addendum to the franchise agreement. CFRA refers to California Business and Professions Code Sections 20000 through 20043, which provide rights to the franchisee concerning termination and non-renewal of the franchise.
This means that if Chem Dry decides to terminate a franchise agreement in California, it must do so following the guidelines and regulations outlined in Section 20020 of the California Business and Professions Code. This section likely details the specific conditions, procedures, and notices required for a lawful termination.
For a prospective Chem Dry franchisee in California, this information is crucial. It ensures that the termination process adheres to California law, protecting the franchisee's rights. It is advisable for potential franchisees to carefully review CFRA Section 20020 to fully understand their rights and Chem Dry's obligations in the event of a termination. Furthermore, the FDD states that if the Franchise Agreement is inconsistent with CFRA, the law will control.