Under what circumstances does Chem Dry charge an Administrative Fee?

According to Chem Dry's 2024 Franchise Disclosure Document, an administrative fee of $500.00 is charged under specific circumstances related to the Consolidated Office Agreement (COA). This fee is nonrefundable and is levied as consideration for the privilege of operating multiple Chem-Dry franchises from a single office location.

This administrative fee is applicable only if the COA is not signed in conjunction with the sale of a new Chem-Dry franchise. This implies that if a franchisee is starting a new Chem-Dry franchise, the administrative fee for a COA may be waived or included in the initial franchise costs. However, for existing franchisees looking to consolidate multiple franchise operations under one office, the fee applies.

The COA, and therefore the administrative fee, is tied to the term of the franchise agreement and is non-renewable and non-transferrable. If a franchisee wishes to continue operating multiple franchises from a single location after the initial COA expires, they may be eligible to enter into a second COA with Chem Dry, subject to the then-current terms and conditions and payment of the then-current fee. Chem Dry retains the discretion to approve or deny subsequent COAs.

This policy provides Chem Dry with a mechanism to manage and potentially profit from franchisees who choose to consolidate their operations. For a prospective franchisee, it's crucial to understand the implications of this fee if they plan to operate multiple Chem-Dry franchises from a single location. They should also inquire about the terms and conditions for subsequent COAs and the potential for fee increases.