What is the minimum partial payment amount for prepaying the Chem Dry Business Note?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
se, claim, set off, or other cause in favor of Borrower arising under the Franchise Agreement shall affect Borrower's obligations to pay this Business Note in accordance with its terms. CDI may assign, transfer, discount or pledge this Business Note without notice to Borrower. Borrower acknowledges that its obligations under this Business Note are independent of and are not conditioned or dependent upon any rights or obligations of the parties to the Franchise Agreement.
This Business Note may be prepaid in whole or in part, without premium, from time t
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee has the option to prepay their Business Note, which represents the balance of the Initial Fee, Initial License Fee, or other amounts owed to Chem Dry. These prepayments can be made on the date any installment comes due.
However, Chem Dry requires that partial payments must be in minimum increments of $100.00, or multiples thereof. This means a franchisee can make a partial payment of $100, $200, $300, and so on, but cannot make a partial payment of, for example, $50 or $75.
It is important to note that prepaying the Business Note does not change the franchisee's obligation to continue making the originally scheduled installment payments until the Business Note is paid off in full. Chem Dry also offers a discount of 10% on the Initial License Fee if the franchisee pays the full amount within six months of the Business Note's date.