Does the Dryer Vent Squad Franchise Agreement expressly prohibit any activities?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional Dryer Vent Squad Businesses.
You must operate your Dryer Vent Squad Business and provide the Approved Services and Products exclusively within your Operating Territory. The marketing of your Dryer Vent Squad Business must be targeted to your Operating Territory and you are not permitted to directly solicit customers outside of your Operating Territory. Provided that you do not engage in any Direct Solicitation of customers outside of your Operating Territory or within the Operating Territory of another Dryer Vent Squad Business, you may provide, subject to our written approval, Approved Services and Products within an Open Area, subject to the following definitions, rules and limited circumstances:
- (a) You cannot engage in any Direct Solicitations outside of your Operating Territory. The term "Direct Solicitation" refers to and means "communications and/or contacts occurring through in person contact, telephone, mail, e-mail, direct mail, distributed print media, digital media and/or other forms of marketing directed toward customers, potential customers or referral sources of a Dryer Vent Squad Business";
- (b) You cannot provide Approved Services and Products in the operating territory of another Dryer Vent Squad Business (an "Assigned Area");
- (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a 10 mile radius of your Operating Territory;
- (d) Prior to providing Approved Services and Products to a customer located within an Open Area (an "Out of Territory Customer"), in each instance you must obtain our written approval which we may withhold in our discretion; and
- (e) Once an Open Area becomes an Assigned Area you will no longer be authorized or eligible to provide Approved Services and Products to any customers within the Open Area and you must turn over to us, for the benefit of another Dryer Vent Squad Business franchisee, all information and records related to
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the Franchise Agreement does place express prohibitions on franchisee activities. Specifically, a franchisee cannot establish additional Dryer Vent Squad Businesses.
Additionally, franchisees must operate their Dryer Vent Squad Business and provide services and products exclusively within their assigned Operating Territory. Direct solicitation of customers outside of the Operating Territory is prohibited. "Direct Solicitation" includes communications through in-person contact, telephone, mail, e-mail, direct mail, distributed print media, digital media, and other forms of marketing directed toward potential customers or referral sources. Franchisees also cannot provide services in another franchisee's operating territory, referred to as an "Assigned Area".
Under limited circumstances, Dryer Vent Squad franchisees may provide services to customers within an "Open Area," defined as a geographic area within a 10-mile radius of their Operating Territory that is not an Assigned Area. However, franchisees must obtain written approval from Dryer Vent Squad before providing services to a customer in an Open Area, and Dryer Vent Squad may withhold such approval at its discretion. If an Open Area becomes an Assigned Area, the franchisee must cease providing services there and turn over all customer information to Dryer Vent Squad for the benefit of the new franchisee.