Can Chem Dry increase the transfer fee, and if so, how often?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
(i)our then-current transfer fee as set forth in the Summary Page of this Agreement due at issuance of the Franchise Agreements to transferee. (These dollar amounts may be increased once per calendar year to reflect increases in the Consumer Price Index) as stated in the Manual. The transfer fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the transfer fee can be increased once per calendar year. These increases are tied to the Consumer Price Index, as stated in the Manual.
This means that if you decide to sell your Chem Dry franchise, the fee required to transfer the franchise to a new owner may be higher than what was initially stated in your franchise agreement. The increase is limited to once per year and is based on the Consumer Price Index, which reflects changes in the cost of living.
As a prospective franchisee, it's important to understand that this potential increase in the transfer fee could affect the profitability of selling your franchise in the future. You should review the Manual to understand how the Consumer Price Index is applied to the transfer fee and factor this into your long-term financial planning.