When is the initial license fee due for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial License Fee (1) | $6,000 - $18,000 | Part Lump Sum, Remainder Installments | Due when you sign the Franchise Agreement and the Business Note. | CDI |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to Be made |
|---|---|---|---|---|
| Initial License Fee (1) | $23,500 | Part Lump | When you sign | CDI |
| Sum, | the Franchise | |||
| Remainder by | Agreement and | |||
| Monthly Note | the Business | |||
| Installments | Note |
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- You must pay CDI the Initial Fee for franchise offer you select. The Initial Fee is nonrefundable and can be paid in a single lump sum payment or you may be eligible for financing of up to forty percent (40%) of the Initial License Fee portion of the Initial Fee. When you sign the Franchise Agreement and the Business Note, you must pay a down payment of $3,600 - $14,100 to CDI toward the Initial License Fee. If you pay the Initial License Fee in full within six months of signing the Franchise Agreement and the Business Note, CDI will offer you a Cash Discount of 10% of the Initial License Fee amount. See Items 5 and 10. CDI does not offer financing on the Initial Package portion of the Initial Fee.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the initial license fee is due when you sign the Franchise Agreement and the Business Note. The amount of the initial license fee varies. For an initial franchise, the fee ranges from $6,000 to $18,000. For an existing franchise, the fee is $23,500.
Chem Dry requires that a portion of the initial license fee be paid as a lump sum, with the remainder paid in installments. Franchisees may be eligible to finance up to 40% of the initial license fee. A down payment between $3,600 and $14,100 is required when signing the Franchise Agreement and Business Note.
Chem Dry also offers a cash discount. If the initial license fee is paid in full within six months of signing the Franchise Agreement and the Business Note, Chem Dry will offer a cash discount of 10% of the initial license fee amount. The initial fee is nonrefundable.