Under what circumstances might Chem Dry offer incentives to prospective franchisees?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
ise purchases.
Discounts
From time to time, we may offer incentives of cash grants, equipment, product, or other items as an inducement to prospective franchisees when business circumstances warrant and in states where such incentives can be offered without restrictions. We reserve the right to change, condition, limit, withdraw or cancel any discount offer at any time. In addition, CDI may offer refurbished equipment or other items available for purchase as a part of your Initial Package. If you choose to purchase refurbished equipment (as opposed to new equipment) the price of your Initial Package would be reduced to reflect the price difference of used equipment options.
We are a member of the International Franchise Association ("IFA") and participate in the IFA's VetFran Program, which provides a ten percent (10%) discount on the Initial License Fee for the first franchise acquisition for veterans and spouses of current active-duty personnel of the U.S. Armed Forces who meet the requirements of the VetFran Program. We also offer a ten percent (10%) discount on the Initial License Fee for the first franchise acquisition by First Responders which include sworn police officers, paid and volunteer firefighters, and paid and volunteer emergency medical technicians and paramedics. For a VetFran qualified or a First Responder qualified franchisee, the Initial License Fee of $23,500 would be discounted by $2,350 for a net Initial License Fee of $21,150. If you pay the Initial License Fee of $21,150 within six months of signing the Franchise Agreement and the Business Note, the Cash Discount would be $2,115, for a net Initial License Fee of $19,035.
Initial fees paid may not be uniform. From time to time, we may vary, reduce, negotiate or make an exception to our standard initial fee structure and/or payment terms related to mergers, conversions or other transactions, as well as for our existing franchisees or franchisees of our Affiliates. For example, we may offer opportunities to purchase a franchise at a reduced initial fee to our affiliates' qualified existing franchisees in good standing. We may discontinue, modify, withdraw or reinstate any such opportunities or variations to initial
fees without notice to you at any time. In the last fiscal year Initial License Fees ranged from $6,000 to $23,500.
Referral Fee
Where permitted by law without franchise broker or seller registration, CDI will pay to any Chem-Dry franchisee a referral fee of $1,000 for each potential franchisee you refer to CDI that purchase a new Chem-Dry franchise. You must be the first person to provide CDI with the name, address and phone number of the potential franchisee. If the referred person purchases a Chem-Dry franchise within 90 days from the date of referral, you will receive $1,000 as a referral fee when they pay the down payment on their Initial License Fee.
Source: Item 5 — INITIAL FEES (FDD pages 15–19)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry may offer incentives to prospective franchisees under certain business circumstances. These incentives can include cash grants, equipment, product, or other items. These incentives are offered as an inducement to prospective franchisees when business circumstances warrant and in states where such incentives can be offered without restrictions. Chem Dry also reserves the right to change, condition, limit, withdraw, or cancel any discount offer at any time.
Chem Dry also participates in the IFA's VetFran Program, which provides a ten percent (10%) discount on the Initial License Fee for the first franchise acquisition for veterans and spouses of current active-duty personnel of the U.S. Armed Forces who meet the requirements of the VetFran Program. Chem Dry also offers a ten percent (10%) discount on the Initial License Fee for the first franchise acquisition by First Responders which include sworn police officers, paid and volunteer firefighters, and paid and volunteer emergency medical technicians and paramedics. For a VetFran qualified or a First Responder qualified franchisee, the Initial License Fee of $23,500 would be discounted by $2,350 for a net Initial License Fee of $21,150. If the Initial License Fee of $21,150 is paid within six months of signing the Franchise Agreement and the Business Note, the Cash Discount would be $2,115, for a net Initial License Fee of $19,035.
Furthermore, Chem-Dry may offer opportunities to purchase a franchise at a reduced initial fee to its affiliates' qualified existing franchisees in good standing. These opportunities or variations to initial fees can be discontinued, modified, withdrawn, or reinstated at any time without notice. Initial fees paid may not be uniform, and Chem Dry may vary, reduce, negotiate, or make exceptions to its standard initial fee structure and/or payment terms related to mergers, conversions, or other transactions, as well as for existing franchisees or franchisees of its Affiliates.
Chem Dry also offers a referral fee. CDI will pay to any Chem-Dry franchisee a referral fee of $1,000 for each potential franchisee you refer to CDI that purchase a new Chem-Dry franchise. The franchisee must be the first person to provide CDI with the name, address and phone number of the potential franchisee. If the referred person purchases a Chem-Dry franchise within 90 days from the date of referral, the referring franchisee will receive $1,000 as a referral fee when they pay the down payment on their Initial License Fee.