When is the Chem Dry transfer fee due, and is it refundable?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
(i)our then-current transfer fee as set forth in the Summary Page of this Agreement due at issuance of the Franchise Agreements to transferee. (These dollar amounts may be increased once per calendar year to reflect increases in the Consumer Price Index) as stated in the Manual. The transfer fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the transfer fee is due upon the preparation of the required transfer documentation, which includes the consent to transfer and assignment agreement, and/or the preparation of the transferee's franchise agreement. This fee is specified in the Summary Page of the Franchise Agreement. The amount of the transfer fee may be increased once per calendar year to reflect increases in the Consumer Price Index, as detailed in the Chem Dry manual.
Importantly, the transfer fee is non-refundable once Chem Dry has prepared the necessary transfer documentation. This means that if a franchisee decides not to proceed with the transfer after the documentation is prepared, the transfer fee will not be returned.
Prospective franchisees should be aware of this non-refundable condition and carefully consider their decision to transfer their franchise before Chem Dry begins preparing the transfer documents. It is also advisable to confirm the current transfer fee amount and understand how it is calculated, especially considering the potential for annual increases based on the Consumer Price Index.