Is a Chem-Dry franchisee responsible for investigating state and local regulations that may apply to their business's geographic area?
Chem_Dry Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Chem-Dry Business will be subject to various federal, state and local laws and regulations concerning the proper handling and disposal of cleaning products used in, and wastewater generated by the Chem-Dry Business and to offer the Services. You should investigate the application of these laws further and make inquiries about other laws that may be applicable to your Chem-Dry Business.
The Chem-Dry Business will also be subject to various federal, state and local laws, and regulations affecting the business, including, among others, federal, state and local laws, rules and regulations governing franchises, licensing, permits, zoning, the EPA, and other federal and state environmental protection statutes, OSHA, and other federal, state and local laws regarding hazardous substances and waste, land use, construction regulations and various health, sanitation, safety and fire standards. You are also subject to employment laws such as the EEOC, Fair Labor Standards Act, Americans with Disabilities Act and various state laws governing such matters as minimum wages, overtime and working conditions. There may be federal, state and local laws which affect your Chem-Dry Business in addition to those listed here.
You should investigate whether there are any state or local regulations or requirements that may apply in the geographic area in which you intend to conduct business. You should consider both their effect on your business and the cost of compliance. You are responsible for obtaining all licenses and permits which may be required for your business.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–15)
What This Means (2025 FDD)
According to Chem-Dry's 2025 Franchise Disclosure Document, franchisees are indeed responsible for investigating state and local regulations applicable to their business. This includes understanding laws and regulations concerning the handling and disposal of cleaning products and wastewater, as well as those affecting the business in general, such as franchise laws, licensing, permits, zoning, environmental protection statutes, OSHA, hazardous substances, land use, construction, and health and safety standards. Franchisees must also comply with employment laws.
This responsibility means that a prospective Chem-Dry franchisee needs to conduct thorough due diligence to identify all relevant regulations in their chosen geographic area. This investigation should consider the effect of these regulations on the business and the costs associated with compliance. It is not enough to simply be aware of the laws; franchisees must understand how these laws impact their daily operations and financial obligations.
Furthermore, the Chem-Dry FDD states that franchisees are responsible for obtaining all necessary licenses and permits required to operate their business. This underscores the importance of proactive research and engagement with local authorities to ensure full compliance from the outset. Failing to comply with these regulations can result in fines, penalties, or even the closure of the business, making this a critical aspect of the franchise investment.