For a Chem Dry franchise, when is the payment due for the optional additional equipment?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
NCHISEE PURCHASING ADDITIONAL FRANCHISE
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial License Fee (1) | $6,000 - $18,000 | Part Lump Sum, Remainder Installments | Due when you sign the Franchise Agreement and the Business Note. | CDI |
| Optional Additional Equipment(1) | $0 to $28,525 | Lump Sum | Dat |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, payment for optional additional equipment, which ranges from $0 to $28,525, is due when you sign the Franchise Agreement. The method of payment is a lump sum, and the payment is made to CDI.
This means that if a new Chem Dry franchisee chooses to purchase optional additional equipment, they must pay the full amount at the time of signing the franchise agreement. This upfront cost should be factored into the franchisee's initial investment and financial planning.
It is important for prospective franchisees to carefully consider whether they need the optional additional equipment at the outset of their business, as this represents a potentially significant upfront expense. They should also confirm with Chem Dry exactly what equipment is included in this category and whether there are any alternatives or financing options available.