Is there a premium for prepaying the Chem Dry Business Note?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
se, claim, set off, or other cause in favor of Borrower arising under the Franchise Agreement shall affect Borrower's obligations to pay this Business Note in accordance with its terms. CDI may assign, transfer, discount or pledge this Business Note without notice to Borrower. Borrower acknowledges that its obligations under this Business Note are independent of and are not conditioned or dependent upon any rights or obligations of the parties to the Franchise Agreement.
This Business Note may be prepaid in whole or in part, without premium, from time t
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees can prepay their Business Note without incurring a premium. The Business Note represents the balance of the Initial Fee, Initial License Fee, or other amounts owed to Chem Dry. Franchisees can make prepayments in whole or in part on any installment due date, provided that partial payments are in minimum increments of $100.00.
Chem Dry also offers a discount on the Initial License Fee if it is paid in full within six months of the Business Note's date. In this case, Chem Dry will discount the total due for the Initial License Fee by ten percent.
It's important to note that prepayments do not affect the franchisee's obligation to continue making scheduled installment payments until the Business Note is paid in full. This means that even if a franchisee makes prepayments, they must still adhere to the original payment schedule until the entire balance is cleared. This policy ensures consistent cash flow for Chem Dry while providing franchisees with the flexibility to reduce their debt faster without penalty.