Are the rights granted to the Dryer Vent Squad franchisee in Article 2.A exclusive?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
ransfer and/or sale of an Owners interests and/or voting rights in Franchisee.
"Transfer Fee" shall have the meaning defined in Article 14.C.(11) of this Agreement. The Transfer Fee is either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers.
ARTICLE 2 GRANT OF FRANCHISE
2.A. GRANT OF FRANCHISE
Franchisee has requested that Franchisor grant to Franchisee the non-exclusive license and right to develop, own and operate a Dryer Vent Squad Business within a specified territory. In reliance on the representations made by Franchisee and/or Franchisee'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;
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the rights granted to a franchisee in Article 2.A are non-exclusive. Specifically, Dryer Vent Squad grants the franchisee a nonexclusive license and right to develop and operate a Dryer Vent Squad Business within a designated operating territory, as outlined in Schedule 1 of the Franchise Agreement. This territory can be either a Single Territory or a Double Territory, as specified in Schedule 2.
While Dryer Vent Squad agrees not to operate or franchise another Dryer Vent Squad Business within the franchisee's operating territory, this is contingent upon the franchisee's compliance with the agreement's terms and is subject to Dryer Vent Squad's reserved rights and any existing closed markets. This means that Dryer Vent Squad retains certain rights, and the franchisee's rights are subordinate to these. The franchisee is also restricted to operating the franchised business and offering services only within their designated operating territory, adhering to System standards and the Operations Manual requirements.
This non-exclusive grant of rights means that Dryer Vent Squad retains the ability to conduct business using the Licensed Marks and System outside the franchisee's territory. The rights granted in Article 2.A are subject to all terms and conditions of the agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights. This is a common practice in franchising, allowing the franchisor flexibility in expanding the brand and managing its network.