Is the Chem Dry monthly franchise fee subject to increase?
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. The CPI increase for 2024 is 3%. |
| Yearly Minimum Purchase Amount | The then current fee, which is presently $3,244.501 | Annually | You must purchase a minimum of $3,244.50 (increased not more than once each calendar year to reflect increases in the CPI) of proprietary products from CDI each calenda |
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 is subject to increase. The then-current monthly franchise fee is $466.01. This fee is subject to a CPI (Consumer Price Index) increase each year on April 1, but not more than once per calendar year. The CPI increase for 2024 was 3%.
In addition to the monthly franchise fee, Chem Dry franchisees must also pay a yearly minimum purchase amount of proprietary products from CDI (Chem-Dry, Inc.). This amount is presently $3,244.50 and is also subject to increase, but not more than once each calendar year to reflect increases in the CPI.
Understanding how these fees may increase over time is crucial for prospective franchisees to accurately forecast their potential expenses and profitability. Franchisees should factor in potential CPI increases when creating their financial projections to ensure the long-term viability of their Chem Dry business.