If I am an existing franchisee, when does the Chem Dry monthly franchise fee begin?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
License Fee.
ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly Franchise Fee | The then current fee, which is presently $466.011 | 10th day of month | Generally, begins four months after you complete New Buyer Training, or if you are an existing Franchisee, the 4th month following the signing of the Franchise Agreement. If you are a transferring Franchisee, the month following the signing of the Franchise Agreement. Subject to CPI increase each year on April 1 and not more than once per calendar year. This fee must be paid via electronic funds transfer |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the monthly franchise fee for existing franchisees begins the 4th month following the signing of the Franchise Agreement. The then-current monthly franchise fee is $466.01. This fee is subject to a CPI increase each year on April 1 and not more than once per calendar year. The CPI increase for 2024 is 3%.
This means that if you are an existing Chem Dry franchisee renewing your agreement, you will start paying the monthly franchise fee four months after signing the new agreement. This is different from a transferring franchisee, who begins paying the fee the month following the signing of the Franchise Agreement.
The monthly franchise fee must be paid via electronic funds transfer. It's important to note that the fee is subject to change with CPI increases, so the amount may vary over the term of the agreement. Franchisees should budget accordingly and stay informed about any potential fee adjustments.
In addition to the monthly franchise fee, Chem Dry franchisees must also meet a yearly minimum purchase amount of proprietary products from CDI, which is currently $3,244.50. This amount is also subject to CPI increases, ensuring that franchisees are aware of all financial obligations associated with their franchise.