Under what shipping terms is Chem Dry equipment typically shipped?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ment terms set forth in the Schedule. The equipment purchased under this Agreement shall be referred to as the "Equipment." To secure Franchisee's obligations to pay CDI for the Equipment, in the event CDI financed any portion of the purchase of the Equipment, and to dispose of the Equipment in accordance with the Franchise Agreement, Franchisee has granted to CDI the security interest in the Equipment set forth herein.
SHIPMENT, TITLE & RISK OF LOSS. CDI will arrange for shipment of the Equipment on the Schedule to Franchisee. Risk of loss and title to the Equipment transfers to Franchisee upon delivery, subject to any security interest of CDI retained under this Agreement. Franchisee shall inspect each shipment promptly upon receipt and will be deemed to accept the Equipment as conforming to the Schedule unless any defects or deficiencies are noted to CDI within 2 business days after delivery.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry will arrange for shipment of equipment to the franchisee. Upon delivery, the risk of loss and title to the equipment transfers to the franchisee, though Chem Dry retains a security interest if they financed any portion of the equipment purchase.
Upon receiving the equipment, the franchisee is responsible for inspecting the shipment and reporting any defects or deficiencies to Chem Dry within two business days. If no issues are reported within this timeframe, the sale is considered final, meaning the franchisee accepts the equipment as is.
In the event of termination or expiration of the franchise agreement, the franchisee must cooperate with Chem Dry to arrange for the equipment to be shipped to a location designated by Chem Dry. Chem Dry will cover the cost of freight for this return shipment, unless the franchisee has made arrangements to sell the equipment to another Chem Dry franchisee with Chem Dry's consent.