When is the initial package fee due for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Note | |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to Be made |
|---|---|---|---|---|
| (1) Initial Package | $39,495 - $84,495 | Lump Sum | When you sign the Franchise Agreeme |
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 package fee, which ranges from $39,495 to $84,495, is due when you sign the Franchise Agreement and the Equipment Agreement. The method of payment is a lump sum. This fee is payable to CDI.
This means that a prospective Chem Dry franchisee must have the full amount of the initial package fee available at the time of signing the franchise and equipment agreements. Unlike the initial license fee, Chem Dry does not offer financing for the initial package portion of the initial fee.
It is important for potential franchisees to carefully consider this large upfront payment and ensure they have sufficient capital before committing to the franchise. Understanding the payment terms and schedule is a crucial part of the due diligence process.