What index does Chem Dry use to determine increases in the Monthly Franchise Fee?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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- CDI may increase, in its sole discretion, the Monthly Franchise Fee not more than once each calendar year to reflect increases in the Consumer Price Index for All Urban Consumers-All Items, All Cities Average (1982-1984 = 100) as published by the U.S. Department of Labor or in a successor index we select ("the Consumer Price Index"). Monthly Franchise Fees are nonrefundable once paid. CDI will notify FRANCHISEE of any change in the Monthly Franchise Fee.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry may increase the Monthly Franchise Fee once per calendar year. The increase will reflect changes in the Consumer Price Index for All Urban Consumers-All Items, All Cities Average (1982-1984 = 100) as published by the U.S. Department of Labor. Chem Dry may also choose a successor index.
This means that the monthly fee a franchisee pays to Chem Dry can be adjusted annually based on inflation. The Consumer Price Index (CPI) is a widely used measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI uses a base period of 1982-1984, setting the average index level for that period at 100.
Chem Dry will notify franchisees of any changes to the Monthly Franchise Fee. It is important to note that Monthly Franchise Fees are nonrefundable once paid. This policy is typical in franchising, as the fees contribute to ongoing support and brand development efforts by the franchisor.