When are the Business Note payments due for a Chem Dry franchise, and are they refundable?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The Initial License Fee is due at the time you sign the Franchise Agreement and is non-refundable. If we determine that you are creditworthy, we may offer to finance up to forty percent (40%) of the Initial License Fee through a Business Note that you issue and sign on the form we provide when you sign the Franchise Agreement. If we approve you for financing, CDI will finance the remainder of the Initial License Fee through the Business Note over 56 months until the remaining balance is paid in full. All Business Note payments are due on or before the tenth day of each month and are non-refundable. Payments are non-refundable and generally begin the fourth month following completion of New Buyer Training, or, if you are an existing Franchisee buying an additional franchise, the fourth month following the signing of the Franchise Agreement. The Business Note bears simple interest at rates ranging from 8%-15% that we determine based on our underwriting standards. If you do not complete Initial and New Buyer Training by the deadline in your Franchise Agreement, your Business Note will be accelerated and due and payable in full. (See Item 10)
Source: Item 5 — INITIAL FEES (FDD pages 15–19)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if Chem Dry determines a franchisee is creditworthy, they may offer to finance up to 40% of the Initial License Fee through a Business Note. The Business Note is signed when the Franchise Agreement is signed. If financing is approved, Chem Dry will finance the remainder of the Initial License Fee through the Business Note over 56 months until the balance is paid in full.
All Business Note payments are due on or before the tenth day of each month. Payments generally begin the fourth month following completion of New Buyer Training, or, for existing franchisees buying an additional franchise, the fourth month following the signing of the Franchise Agreement. The Business Note bears simple interest at rates ranging from 8% to 15%, which Chem Dry determines based on their underwriting standards.
It is important to note that all Business Note payments to Chem Dry are non-refundable. Additionally, if a franchisee does not complete the Initial and New Buyer Training by the deadline in their Franchise Agreement, the Business Note will be accelerated and due and payable in full, representing a significant financial risk.