When is the Chem Dry monthly franchise fee due?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Marketing Fund ("BMF") Contribution1 | Our then current fee which is presently $1601 | Monthly | Your contributions to the BMF will be due on the 25th of each month beginning the same month your first Monthly Franchise Fee payment is due. Subject to an increase once a year on 30 days' written notice from CDI up to $300 per month. See Item 11. |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Franchise Advanced Website | Then current fee which is presently $25 - $100 monthly per site, depending on selected upgrades1 | 10th day of month | Development, hosting and maintenance fees for franchisee sites. The first year is included in the Initial Package. After the first year, month-to-month and paid via electronic funds transfer. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Brand Marketing Fund (BMF) contribution is due monthly on the 25th of each month. This payment schedule starts in the same month that the franchisee's first Monthly Franchise Fee payment is due. The BMF contribution is currently $160 but is subject to an increase once a year with a 30-day written notice from Chem Dry, potentially reaching up to $300 per month. Item 11 provides further details on this fee.
In addition to the BMF contribution, Chem Dry franchisees may also be responsible for a Franchise Advanced Website fee, which is due on the 10th day of each month. This fee, which currently ranges from $25 to $100 monthly per site depending on selected upgrades, covers the development, hosting, and maintenance of franchisee websites. The first year of this fee is included in the Initial Package, and subsequent payments are made month-to-month via electronic funds transfer.
It's important to note that the Chem Dry FDD does not explicitly state the due date for the standard monthly franchise fee. However, it does specify the due dates for related fees such as the Brand Marketing Fund contribution and the Franchise Advanced Website fee. A prospective franchisee should clarify the due date for the standard monthly franchise fee with Chem Dry to fully understand the payment obligations.