How often can the Chem Dry monthly franchise fee increase in a calendar year?
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 is subject to a CPI (Consumer Price Index) increase each year on April 1, and not more than once per calendar year. As of the FDD date, the current monthly franchise fee is $466.01. The CPI increase for 2024 was 3%.
This means that a Chem Dry franchisee can anticipate a potential increase to their monthly franchise fee once annually, coinciding with the April 1st adjustment based on the CPI. The CPI is a measure of inflation, so this adjustment is meant to keep pace with the rising costs of goods and services.
For a prospective franchisee, this indicates a degree of predictability in fee increases, as they are tied to an external economic indicator and occur at a set time each year. However, it also means that the franchisee's expenses will likely increase over time, and they should factor this into their financial planning. Franchisees should also be aware that while the CPI increase is capped at once per year, other fees may be subject to change more frequently.