How often can the Chem Dry yearly minimum purchase amount be increased?
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 yearly minimum purchase amount can be increased no more than once each calendar year. The increase is tied to the Consumer Price Index (CPI). Currently, the minimum yearly purchase amount is $3,244.50.
This means that as a Chem Dry franchisee, you are required to purchase at least $3,244.50 worth of proprietary products from Chem Dry each year. This amount is subject to a potential increase annually, based on the CPI. The CPI is a measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
The yearly increase in the minimum purchase amount is designed to account for inflation and rising costs. While the increase is capped at once per year, it is important for prospective franchisees to factor in potential increases to their operating costs when evaluating the financial viability of the franchise. Franchisees should monitor the CPI and budget accordingly to accommodate potential increases in the minimum purchase amount.
It is also important to note that the CPI increase for the Monthly Franchise Fee for 2024 was 3%.