What is included in the Initial Fee for a new Chem-Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
M 5 INITIAL FEES**
You must pay CDI an initial fee specified in the Charts below, which will vary depending upon how many Chem-Dry franchises that you already own and the type of franchise that you purchase. Chart A
states the initial fee associated with acquiring your first franchise. Chart B states the initial fee for acquiring an additional franchise if you are already a Chem-Dry franchisee.
Initial Franchise Acquisition
If you are purchasing your first Chem-Dry franchise, the initial fee (the "Initial Fee") comprises an Initial Licensee Fee, an Initial Package which includes an Equipment Package and a Product, Marketing and Operations Package having these components:
Chart A - Initial Franchise Acquisition
| INITIAL LICENSE FEE1 | PLUS | PACKAGE2 INITIAL | TOTAL INITIAL FEE |
|---|---|---|---|
| $23,500 | + | Executive Portable Package Equipment Package plus Product, Marketing and Operations Package Price of $39,495 - $42,495 | $62,995 - $65,995 |
| $23,500 | + | Executive Truck Mount Package Equipment Package plus Product, Marketing and Operations Package Price of $69,495 - $84,495 | $92,995 - $107,995 |
1 If you pay the Initial License Fee when you sign your Franchise Agreement or within 6 months after you sign your Franchise Agreement and the Business Note, we will discount the Initial License Fee by $2,350 so your Initial License Fee will be $21,150.
Source: Item 5 — INITIAL FEES (FDD pages 15–19)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the initial fee for a new franchise comprises several components. If you are purchasing your first Chem-Dry franchise, the initial fee includes an Initial Licensee Fee and an Initial Package. The Initial Package further breaks down into an Equipment Package and a Product, Marketing, and Operations Package. The total initial fee varies depending on the specific package chosen.
For an Expansion Franchise, which does not include any part of an Initial Package, the Initial License Fee is $18,000. For a Small Market Franchise, defined as an area with a population of fewer than 120,000 and no current Chem-Dry presence, the Initial License Fee is $6,000, and this option also does not include any part of an Initial Package.
For a standard franchise, the Initial License Fee is $23,500. If you choose the Executive Portable Package, which includes the Equipment Package plus the Product, Marketing, and Operations Package, the total initial fee ranges from $62,995 to $65,995. Alternatively, the Executive Truck Mount Package, which also includes the Equipment Package plus the Product, Marketing, and Operations Package, results in a total initial fee ranging from $92,995 to $107,995. These figures do not include state or local taxes, which may increase the amount you must spend.