When is the renewal fee due for a Chem Dry franchise agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ess. |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Software Fee2 | after a one-time data import fee of up to $5001 | The Data Import Fee is only required if you have an existing customer data base to import. | |
| Renewal Fee | Our then current fee which is presently $1,0001 | Prior to expiration of the initial term | Fee due at the end of the initial five-year term to acquire a successor franchise agreement. |
| Initial Monthly Marketing Spend by You | $1,000 per month for four months, then a minimum of $2,000 per month, including $1,000 per month for digital marketing for eight months1 | Expended Monthly, beginning the month after you complete New Buyer Training and continuing for 12 months | You are required to spend minimum amounts on local marketing for your Chem Dry Business. See Item 11. |
| Brand Marketing Fund ("BMF") Contribution1 | Our then current fee which is presently $1601 | Monthly | Your contributions to the BMF will be due on the 25th of each month beginning the same month your first Monthly Franchise Fee payment is due. Subject to an increase once a year on 30 days' written notice from CDI up to $300 per month. See Item 11. |
| Transfer Fee | Then current fee which is presently $1,500 $3,0001 - | At the beginning of the transfer process in which any ownership interest in your Chem-Dry Business is being transferred and prior to issuance of the Franchise Agreement | Transfer to spouse or adult offspring of franchisee - $1,500, for all others, $3,000. Payable when you propose to transfer your Chem-Dry Business or any portion of its assets to another p |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the renewal fee is due prior to the expiration of the initial term. The current renewal fee is $1,000. This fee is required to acquire a successor franchise agreement at the end of the initial five-year term.
For a prospective Chem Dry franchisee, this means that if they wish to continue operating their franchise after the initial five-year term, they must pay the renewal fee of $1,000 before the initial term expires. It is important to note that the renewal fee is subject to change, as it is based on Chem Dry's then-current fee at the time of renewal.
Franchisees should be aware of this upcoming expense as they approach the end of their initial term to avoid any interruption in their franchise operations. Planning ahead and budgeting for this fee will ensure a smooth transition into a successor franchise agreement with Chem Dry.