What fees does Chem Dry charge for the Service?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
uent to and notwithstanding the termination or expiration of this Agreement until the expiration of all statutes of limitation on any claims covered by this indemnity, and for the duration of all defending claims asserted against an Indemnified Party before the expiration of such limitations.
8. FEES
In consideration of the license granted to FRANCHISEE in this Agreement, FRANCHISEE agrees to pay to CDI the following fees:
A. INITIAL LICENSE FEE
-
- FRANCHISEE agrees to pay a non-recurring and non-refundable initial fee (the "Initial Fee") comprised of the following:
- a. An initial license fee in the amount as set for on the Summary Page of this Agreement for the right to use the Marks during the term of this Agreement (the "Initial License Fee"); and
- b. An initial advertising, cleaning solution, and equipment package fee in the amount as set forth on the Summary Page of this Agreement, not including state or local taxes, which can vary, (the "Initial Package").
-
- If CDI agrees to finance the Initial License Fee, FRANCHISEE shall pay a down payment in the amount as set forth on the Summary Page when FRANCHISEE signs this Agreement and FRANCHISEE will sign and deliver to CDI FRANCHISEE'S Business Note (the "Business Note") for the balance of the Initial License Fee. The Business Note is payable whether or not this Agreement terminates and is not subject to any claim, set off or defenses arising under this Agreement. CDI may assign, pledge or transfer the Business Note to a third party without notice to FRANCHISEE.
-
- Upon execution of this Agreement by CDI, the Initial License Fee shall be deemed fully earned and non-refundable.
B. MONTHLY FRANCHISE FEE
- FRANCHISEE agrees to pay CDI a continuing, non-refundable monthly franchise fee (the "Monthly Franchise Fee") in the amount as set forth on the Summary Page to this Agreement, beginning on the tenth (10th) day of either (A) the fourth (4th) month after FRANCHISEE completes initial training, (B) if FRANCHISEE is an existing Chem-Dry franchisee, the fourth (4th) month after the Effective Date of this Agreement, or (C) if this is a transfer or succession of an existing Chem-Dry business, the tenth (10th) day of the month after the Effective Date of this agreement (the "Payment Start Date") for a license to operate the BUSINESS.
-
- CDI may increase, in its sole discretion, the Monthly Franchise Fee not more than once each calendar year to reflect increases in the Consumer Price Index for All Urban Consumers-All Items, All Cities Average (1982-1984 = 100) as published by the U.S. Department of Labor or in a successor index we select ("the Consumer Price Index"). Monthly Franchise Fees are nonrefundable once paid. CDI will notify FRANCHISEE of any change in the Monthly Franchise Fee.
-
- If FRANCHISEE continues to operate the BUSINESS after expiration of the Term or termination of this Agreement, FRANCHISEE will continue to pay the Monthly Franchise Fee on the 10th of the month in an amount that is twice the amount of the Monthly Franchise Fee then in effect until FRANCHISEE signs a successor Franchise Agreement and pays the Successor Fee or ceases to operate the BUSINESS.
**C.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees are subject to several fees. These include an Initial License Fee, the amount of which is set forth on the Summary Page of the Franchise Agreement. There is also an Initial Package fee, which covers advertising, cleaning solutions, and equipment, with the amount also specified on the Summary Page, excluding state and local taxes. If Chem Dry finances the Initial License Fee, the franchisee must make a down payment as detailed on the Summary Page and sign a Business Note for the remaining balance.
In addition to the initial fees, Chem Dry franchisees must pay a continuing Monthly Franchise Fee, with the specific amount listed on the Summary Page of the agreement. This fee begins on the tenth day of the fourth month after completing initial training, or under certain conditions such as being an existing franchisee or a transfer of an existing business.
Chem Dry franchisees also contribute to a Brand Marketing Fund (BMF) for advertising and marketing initiatives. This contribution is a monthly amount between $100 and $300, as determined by Chem Dry, and is due on the 25th of each month, starting when the first Monthly Franchise Fee payment is due. This BMF contribution can be increased up to a maximum of $300 with 30 days' prior written notice from Chem Dry.
Prospective franchisees should carefully review the Summary Page of the Franchise Agreement to understand the specific amounts of the Initial License Fee, Initial Package fee, and Monthly Franchise Fee applicable to their franchise. They should also factor in the ongoing BMF contributions when assessing the total cost of operating a Chem Dry franchise.