What is the initial license fee for a Chem Dry Small Market Franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
al Franchise Acquisition**
| FRANCHISE TYPE | INITIAL LICENSE FEE1 | |---|---| | Expansion Franchise – an “Expansion Franchise” does not include any part | $18,000 | | of an Initial Package. | | | Small Market Franchise – a “Small Market Franchise” is generally defined | $6,000 | | as an area with a population of fewer than 120,000 and no current Chem- | | | Dry presence. This franchise offering does not include any part of an Initial | | | Package. | | 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 10%, or $1,800 for a net Initial License Fee of $16,200 for an Expansion Franchise, or $600 for a net Initial License Fee of $5,400 for a Small Market Franchise.
The Initial Fees listed above are non-refundable. Prior to an Additional Franchise Acquisition, CDI reserves the right to require that you demonstrate to our satisfaction that you are developing your current Franchised Area(s) to the full market potential, have sufficient equipment and crew to manage additional franchises, and that you are in good standing with CDI. "Good standing" means you are not in default under all franchise agreements with CDI and its affiliates, and no events or conditions have occurred that would give CDI or an affiliate the right to terminate a franchise agreement. If we decide that you meet these requirements, we will consider whether to approve the additional franchise acquisition. You will be required to execute a release as a condition to purchasing the additional franchise (See Exhibit F of the Franchise Agreement).
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 license fee for a Small Market Franchise is $6,000. A Small Market Franchise is generally defined as an area with a population of fewer than 120,000 and no current Chem-Dry presence. This type of franchise does not include any part of an Initial Package.
However, Chem Dry offers a discount on the initial license fee if it is paid when the Franchise Agreement is signed, or within 6 months after signing the Franchise Agreement and the Business Note. The discount for a Small Market Franchise is $600, reducing the net initial license fee to $5,400.
For existing franchisees in good standing with Chem Dry or its affiliates (referred to as "Related Franchisees"), the initial license fee for a Small Market franchise is further reduced to $4,500. This Related Franchisee program pricing is limited to two franchises purchased at the same time, and no other discounts apply. It's important to note that initial fees paid may not be uniform, and Chem Dry reserves the right to change, condition, limit, withdraw, or cancel any discount offer at any time.