When is the Chem Dry transfer fee for a prospect introduced to you by CDI or its affiliates due?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
val. |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee for prospect introduced to you by CDI or its affiliates or working with CDI in the past 18 months | Then current fee which is presently 10% of the sales price, but no less than $10,0001 | At the beginning of the transfer process and prior to issuance of the Franchise Agreement | Payable if you propose to transfer the Franchise Business or its assets, with our prior approval, to a prospect introduced to you by CDI or who had been working with CDI in past 18 |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if a franchisee proposes to transfer their franchise business or its assets to a prospect introduced by CDI or its affiliates, or someone who has worked with CDI within the past 18 months to buy a Chem-Dry franchise, a transfer fee is required. This fee is due at the beginning of the transfer process and prior to the issuance of the Franchise Agreement.
The transfer fee is the then-current fee, which is presently 10% of the sales price, but no less than $10,000. This fee is payable to Chem Dry or its designee and is non-refundable, as stated in the document.
For a prospective Chem Dry franchisee, this means that if they decide to sell their franchise to a buyer sourced through Chem Dry's channels, they should be prepared to pay this transfer fee upfront before the transfer can be completed. This fee covers Chem Dry's costs associated with the transfer process and ensures that the new franchisee meets their standards. It is important to note that fees are subject to change, with potential adjustments based on CPI increases, so the franchisee should confirm the current fee amount with Chem Dry at the time of the transfer.