What transfer fee does Chem Dry charge upon issuance of the Franchise Agreement to the transferee?

According to Chem Dry's 2024 Franchise Disclosure Document, a transfer fee is required upon the issuance of the Franchise Agreement to the transferee. The fee is the then-current transfer fee as outlined in the Summary Page of the Franchise Agreement. Chem Dry may increase this dollar amount once per calendar year to reflect increases in the Consumer Price Index, as stated in the Manual. The transfer fee is due when Chem Dry prepares the required transfer documentation, such as the consent to transfer and assignment agreement or the transferee's franchise agreement. Once the documentation is prepared, the transfer fee is non-refundable.

In practical terms, a potential Chem Dry franchisee who is considering purchasing an existing franchise should be aware of this transfer fee. The exact amount of the fee can be found on the Summary Page of the Franchise Agreement, and it's important to confirm the current amount with Chem Dry, as it may increase annually based on the Consumer Price Index. The fee must be paid when Chem Dry starts preparing the transfer documents, so it's an upfront cost that needs to be factored into the financial planning of the transfer.

It is important to note that the transfer fee is non-refundable once the documentation is prepared. This means that if the transfer falls through for any reason after Chem Dry has started the paperwork, the fee will not be returned. Therefore, it is crucial to ensure that all other aspects of the transfer are secure before triggering the preparation of the transfer documents and incurring this fee. This is a fairly standard practice in franchising, as the franchisor incurs administrative costs during the transfer process.