What is the range of imputed interest rates for Chem Dry franchisees' monthly payments, collateralized by equipment?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| franchisees, due in monthly payments, with imputed | |||
|---|---|---|---|
| interest between 6.5 and 10.0 percent, collateralized | |||
| by the equipment | 20 | 41 | 32 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees who finance equipment through monthly payments will have imputed interest rates between 6.5% and 10.0%. The equipment serves as collateral for these payments.
This means that if a new Chem Dry franchisee chooses to finance their equipment purchases, the financing agreement will include an interest rate within this range. The interest rate impacts the total cost of the equipment over the payment period. The equipment itself is used as collateral, so Chem Dry has a security interest in the equipment until the loan is fully repaid.
Prospective franchisees should consider these interest rates when budgeting for their initial investment. It's important to compare these rates with other financing options to ensure they are getting the best possible terms. Franchisees should also be aware that failure to make payments could result in the loss of the equipment.