To whom is the Chem Dry initial license fee paid?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
NCHISEE PURCHASING ADDITIONAL FRANCHISE
| 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 |
| Optional Additional Equipment(1) | $0 to $28,525 | Lump Sum | Dat |
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 paid to CDI. The amount of the initial license fee varies depending on the franchise agreement. For an initial franchise, the initial license fee ranges from $6,000 to $18,000. For an existing franchisee purchasing an additional franchise, the initial license fee is $23,500.
The initial license fee is due when you sign the Franchise Agreement and the Business Note. The fee can be paid in part as a lump sum, with the remainder paid in installments. Chem Dry offers financing for up to 40% of the initial license fee. If the initial license fee is paid in full within six months of signing the Franchise Agreement and the Business Note, Chem Dry offers a cash discount of 10% of the initial license fee amount.
In addition to the initial license fee, franchisees may incur other expenses payable to CDI, such as the initial package, optional additional equipment, cargo van, installation costs, training and convention attendance expenses, and optional digital advertising and marketing. These fees are typically paid as a lump sum when signing the Franchise Agreement or Equipment Agreement, or prior to attendance for training and convention expenses.