What is the geographic limit within which a Dryer Vent Squad franchisee can operate their franchised business?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee's Owners in any submitted application and during the application process, including, without limitation, the Franchisee Disclosure Questionnaire attached to this Agreement as Exhibit 2 and, subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the nonexclusive license, right and obligation to develop and operate a Dryer Vent Squad Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of and qualify as either a Single Territory or a Double Territory, with such designation and determination being made and identified in Schedule 2 of this Agreement;
- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products within Franchisee's Operating Territory, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual;
- (5) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights and Closed Markets, provided that, at all times, Franchisee is and remains in compliance with the terms of this Agreement, during the Term of this Agreement, Franchisor will not and Franchisor's affiliates will not operate, or grant a franchisee the right to operate a Dryer Vent Squad Business using the Licensed Marks and System within Franchisee's Operating Territory, provided that an Operating Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement; and
- (6) The foregoing rights granted in this Article 2.A. are subject to and contingent upon each and every, term and condition of this Agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.
2.B. TERM
Unless sooner terminated pursuant to the terms of this Agreement, the term of this Agreement will be for a period of 10 consecutive years, commencing on the Effective Date (the "Term").
**2.C.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, a franchisee's primary operating area is their designated "Operating Territory," as defined in Article 2.A of the Franchise Agreement. This territory is specified in Schedule 1 of the agreement; however, if Schedule 1 does not define the territory or is unsigned by the franchisor, Dryer Vent Squad will determine the territory based on their reasonable business judgment. The Operating Territory can be either a Single or Double Territory, as indicated in Schedule 2 of the Franchise Agreement.
A Dryer Vent Squad franchisee is generally restricted to operating their franchised business within their assigned Operating Territory. They can only offer and sell approved services and products within this territory, adhering to the standards set by Dryer Vent Squad and outlined in the Operations Manual. The franchisee's administrative office must also be located within the approved Operating Territory.
However, under certain conditions, a Dryer Vent Squad franchisee may provide services to customers in an "Open Area" outside their territory, provided they do not directly solicit customers outside their assigned area or within another franchisee's territory. This is contingent on obtaining prior written consent from Dryer Vent Squad, which can be granted, denied, or modified at their discretion. Dryer Vent Squad can also require a franchisee to discontinue services in an Open Area at any time, for any reason. If an Open Area becomes an Assigned Area, the franchisee must cease communication with customers in that area and transfer all related information and records to Dryer Vent Squad or another franchisee.