How are Chem Dry's Mitigation and Construction Contracts typically billed?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
For merchandise revenue and mitigation and construction contracts, billings typically occur monthly; however, there are contracts that may dictate milestone-based billing. For corporate services revenue, billing is handled by either the national account or the Company (CDCS) and occurs when the services have been performed. Payment for goods and services performed by the Company is typically due within 30 days after an invoice is sent to the customer. Progress invoices for services performed over a month or more are typically sent to customers on the last business day of each calendar month. Invoices for services performed over a shorter range of time are typically sent to customers upon completion of the service. In instances where the Company is a subcontractor on the contract, the Company is typically paid when the contractor receives its payment. The Company does not offer discounts if the customer pays some or all of an invoiced amount prior to the due date.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, billings for mitigation and construction contracts typically occur monthly. However, the specific contract may dictate milestone-based billing instead.
Chem Dry's policy is to have payment for goods and services typically due within 30 days after the invoice date. Progress invoices for services performed over a month or longer are usually sent on the last business day of each calendar month. Invoices for shorter-term services are typically sent upon completion of the service.
In cases where Chem Dry acts as a subcontractor, payment is generally received when the main contractor gets paid. Chem Dry does not offer discounts for early payments.