When is the Chem Dry initial package payment due?
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 payment, 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 payment is made to CDI.
This means that a prospective Chem Dry franchisee needs to have the full amount of the initial package readily available at the time of signing the agreements. Unlike the Initial License Fee, the FDD states that CDI does not offer financing on the Initial Package portion of the Initial Fee. This up-front cost is a significant part of the initial investment and should be carefully considered in the franchisee's financial planning.
Understanding the due date and payment method for the initial package is crucial for budgeting and securing the necessary funds. The initial package includes registration fees for up to two attendees at the New Buyer Training and the Chem-Dry convention immediately following the training. Therefore, franchisees should factor in these benefits when evaluating the value of the initial package.