When does the Chem Dry monthly franchise fee generally begin to be charged?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
License Fee.
ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly Franchise Fee | The then current fee, which is presently $466.011 | 10th day of month | Generally, begins four months after you complete New Buyer Training, or if you are an existing Franchisee, the 4th month following the signing of the Franchise Agreement. If you are a transferring Franchisee, the month following the signing of the Franchise Agreement. Subject to CPI increase each year on April 1 and not more than once per calendar year. This fee must be 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 monthly franchise fee typically starts four months after you complete the New Buyer Training. If you are an existing franchisee signing a new agreement, the fee begins in the fourth month after signing the Franchise Agreement. For transferring franchisees, the monthly fee starts the month following the signing of the Franchise Agreement.
The monthly franchise fee is subject to an increase each year on April 1, but not more than once per calendar year. This increase is based on the Consumer Price Index (CPI). For 2024, the CPI increase is 3%. It is important to note that this fee, currently set at $466.01, must be paid via electronic funds transfer.
Understanding the timing of when these fees begin is crucial for budgeting and financial planning as a new Chem Dry franchisee. Knowing that the fee starts a few months after training allows time to set up the business. Also, being aware of the potential for annual CPI increases helps in forecasting expenses over the term of the franchise agreement.