What payment method does Chem Dry require for all fees and Business Note payments?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ffective date of the Franchise Agreement and the Business Note. CDI requires an automatic debit program for the payment of all fees and Business Note payments. These monthly payments will be automatically deducted from your bank account. Monthly payments not received by
the due date are subject to interest charge in the amount of 1.5% per month, or the highest rate allowed by applicable law, whichever is less.
All Business Note payments are due on or before the tenth day of each month. The Business Note must be issued and signed by the franchisee and its owners, officers, shareholders, or members as personal guarantors, if an entity. There is no prepayment penalty. The Business Note includes a waiver of defenses (or similar provisions).
If you do not make Business Note payments when due, CDI may accelerate the Note and demand immediate payment of the full outstanding principal amount plus accrued interest. CDI may also terminate the Franchise Agreement under Section 15 of the Franchise Agreement. A charge of $50.00 will be assessed for any installments returned unpaid. In the event of collection proceedings, CDI reserves the right to pursue costs associated with the collections, including court costs and attorney fees in accordance with the Business Note and Section 17 of the Franchise Agreement.
Source: Item 10 — FINANCING (FDD pages 35–37)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry requires an automatic debit program for the payment of all fees and Business Note payments. This means that all monthly payments will be automatically deducted from the franchisee's bank account.
Chem Dry states that monthly payments not received by the due date are subject to an interest charge of 1.5% per month, or the highest rate allowed by applicable law, whichever is less. All Business Note payments are due on or before the tenth day of each month. A charge of $50.00 will be assessed for any installments returned unpaid.
If a Chem Dry franchisee does not make Business Note payments when due, Chem Dry may accelerate the note and demand immediate payment of the full outstanding principal amount plus accrued interest. Chem Dry may also terminate the Franchise Agreement. In the event of collection proceedings, Chem Dry reserves the right to pursue costs associated with the collections, including court costs and attorney fees in accordance with the Business Note and Section 17 of the Franchise Agreement.