How often can Chem Dry increase the Monthly Franchise Fee?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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- CDI may increase, in its sole discretion, the Monthly Franchise Fee not more than once each calendar year to reflect increases in the Consumer Price Index for All Urban Consumers-All Items, All Cities Average (1982-1984 = 100) as published by the U.S. Department of Labor or in a successor index we select ("the Consumer Price Index"). Monthly Franchise Fees are nonrefundable once paid. CDI will notify FRANCHISEE of any change in the Monthly Franchise Fee.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the company has the discretion to increase the Monthly Franchise Fee, but it can do so no more than once each calendar year. Any increase is tied to the Consumer Price Index for All Urban Consumers-All Items, All Cities Average (1982-1984 = 100) as published by the U.S. Department of Labor, or a successor index selected by Chem Dry. This means that the potential for fee increases is linked to a standard measure of inflation.
Chem Dry will notify franchisees of any changes to the Monthly Franchise Fee. The Monthly Franchise Fees are nonrefundable once paid. This policy is fairly standard in franchising, as it allows the franchisor to adjust fees to account for economic changes, while also providing some predictability for franchisees.
It is important for a prospective Chem Dry franchisee to understand that while increases are capped at once per year and tied to the Consumer Price Index, the Monthly Franchise Fee can still fluctuate. Franchisees should factor potential increases into their financial projections and business planning. Understanding the specific index used and tracking its performance can help franchisees anticipate potential fee adjustments.