When is the Administrative Fee due for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ions |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| during the term of the Franchise Agreement with the first attendance occurring during the first three years of the agreement term. | |||
| Month-to Month Post Term Franchise Fee | Two times the then-current monthly 1 Franchise Fee | 10th day of month | Begins the 10th of the month following the expiration of your Franchise Agreement and continues each month you continue to operate the Business until you sign a successor Franchise Agreement, or you cease operating the Business. This fee must be paid via electronic funds transfer. |
| Administrative Fee | Then current fee which is presently $500 per transaction | As incurred | Due when you request or when your actions require us to amend the Franchise Agreement or change the d/b/ |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Administrative Fee is due as incurred. The then-current fee is presently $500 per transaction. This fee is required when a Chem Dry franchisee requests or their actions necessitate an amendment to the Franchise Agreement or a change to the d/b/a name of their Chem Dry franchise.
For a prospective Chem Dry franchisee, this means that the $500 Administrative Fee is not a recurring monthly or annual expense. Instead, it is a conditional fee that only applies if the franchisee needs to make changes to their franchise agreement or business name. This could occur, for example, if the franchisee wants to operate under a different name than originally agreed upon.
It is important for potential Chem Dry franchisees to understand the circumstances under which this fee may be incurred to avoid unexpected costs. Franchisees should carefully consider their initial business plan and chosen name to minimize the likelihood of needing to make changes later on, which would trigger the Administrative Fee.