What is the total amount of the initial license fee for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
NITIAL INVESTMENT – INITIAL FRANCHISE
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to Be made |
|---|---|---|---|---|
| Initial License Fee (1) | $23,500 | Part Lump | When you sign | CDI |
| Sum, | the Franchise | |||
| Remainder by | Agreement and | |||
| Monthly Note | the Business | |||
| Installments | Note |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to Be made | |----------------------------------------------------|---------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|----------------------------------------------| | (1) Initial Package | $39,495 - $84,495 | Lump Sum | When you sign the Franchise Agreement and the Equipment Agreement | CDI | | Optional Additional Equipment (1) | $0 to $28,525 | Lump Sum | When you sign the Franchise Agreement and the Equipment Agreement | CDI | | Cargo Van (2) | $0 - $75,000 | Usually, down payment plus monthly installments or lease payments | Prior to Opening | CDI or Third Parties | | Installation Costs (2) | $600 - $6,000 | Lump Sums | As Agreed | CDI or Third Parties | | Three Month's Rent (3) | $0 - $5,000 | Lump Sum | As Agreed | Third Parties | | Telephone and Business | $400 - | Lump Sum | Prior to | Third | | License | $4,000 | | Opening | Parties | | Training and Convention Attendance Expenses (4) | $1,250 - $3,000 | Lump Sum | Prior to attendance | CDI and Third Parties | | Insurance (5) | $600 - $7,000 | Lump Sum | As Incurred | Third Parties | | Additional Funds - 3 months (6) | $2,500 - $9,000 | Lump Sum | As Incurred During First 3 Months | Third Parties |
| Type of Expenditure | Amount |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–31)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the initial license fee ranges from $6,000 to $18,000 for one type of agreement. For another type of agreement, the initial license fee is $23,500. The method of payment for both is part lump sum with the remainder paid in installments. The initial license fee is due when you sign the Franchise Agreement and the Business Note and is paid to CDI.
Chem Dry also offers financing for up to 40% of the initial license fee. When signing the Franchise Agreement and Business Note, a down payment of $3,600 to $14,100 is due toward the initial license fee. If the initial license fee is paid in full within six months of signing the Franchise Agreement and the Business Note, Chem Dry offers a cash discount of 10% of the initial license fee amount.
Prospective franchisees should note that the initial license fee is nonrefundable. It is important to consider the payment options and potential discounts when evaluating the financial commitment to starting a Chem Dry franchise. Understanding these costs and payment terms is crucial for budgeting and financial planning.