rules for chemdry franchises and restoration

[steve g]

there are some guys in my area who own a chemdry, they also own a restoration company which they operate as a totally different name and company. does this violate franchise rules?? when I worked for rainbow international I don't think they would like anyone doing this too much as they would not be getting royalty on the restoration part.

 

[Jack May]

A guy in NZ tried setting something like that up but CD got wind of it and were charging him something rediculas like a couple grand a week till he sold the TM... Heathrow on here picked it up at an awesome price.

You never know what they might have agreed to in writing so the norm may not always apply.

If he's worth a lot to them, they may just shut a blind eye to it rather than loosing him on the franchise side.

John

 

[steve g]

I was just wondering what the deal is, because I know these guys go in whatever territory they want to, I thought certain areas where off limits because other franchisees owned those areas?? I also thought that chem dry would want their name being used as the company name rather than something else

 

[alazo1]

I know a lot of CD's that do water damage. As far as owning another co. I don't know. It could be they've been around a long time and it was ok to do it this way back then.

Albert

 

[roro]

Steve,
My understanding is that there is no restriction on CD putting another franchisee into the same area as it is totally dependent on the population (think the figure was 30,000) so once person no 30,001 comes along another opening is created.

There is also restrictions on what equipment and chemicals may be used. As alluded to by John above one of our locals bought a Prochem machine that CD found unacceptable so he was "fined" an amount although I believe it was not of the magnitude stated.


roro

 

[steve g]

the restoration company they started is fairly new, also I live in an area with nearly 1.5 mil people, so there is prolly 50 chemdrys I would think some of these guys would get mad because this company just goes wherever they want to.