If I am a transferring 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, if you are a transferring franchisee, the monthly franchise fee begins the month following the signing of the Franchise Agreement. The monthly franchise fee is currently $466.01, but is subject to change.
The monthly franchise fee is typically due on the 10th day of each month and must be paid via electronic funds transfer. This fee is subject to a CPI (Consumer Price Index) increase each year on April 1, but not more than once per calendar year. The CPI increase for 2024 was 3%.
Prospective franchisees should note that the monthly franchise fee is just one of several fees associated with operating a Chem Dry franchise. Other fees include a yearly minimum purchase amount, brand marketing fund contribution, and potential fines for various violations. It is important to carefully review all fees outlined in Item 6 of the Franchise Disclosure Document to fully understand the financial obligations of a Chem Dry franchisee.