Does the Chem Dry yearly minimum purchase amount apply to each franchise a franchisee owns?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
License Fee.
ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly Franchise Fee | The then current fee, which is presently $466.011 | 10th day of month | Generally, begins four months after you complete New Buyer Training, or if you are an existing Franchisee, the 4th month following the signing of the Franchise Agreement. If you are a transferring Franchisee, the month following the signing of the Franchise Agreement. Subject to CPI increase each year on April 1 and not more than once per calendar year. This fee must be paid via electronic funds transfer. The CPI increase for 2024 is 3%. |
| Yearly Minimum Purchase Amount | The then current fee, which is presently $3,244.501 | Annually | You must purchase a minimum of $3,244.50 (increased not more than once each calendar year to reflect increases in the CPI) of proprietary products from CDI each calendar year for each franchise you own. |
| Customer Service | Our then current fee which is presently $100 - $500 per month, | Due Monthly | You are required to use our web-based Customer Management System |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the yearly minimum purchase amount applies to each franchise a franchisee owns. The franchisee must purchase a minimum of $3,244.50 of proprietary products from CDI each calendar year for each franchise they own.
This means that if a franchisee owns multiple Chem Dry franchises, they are obligated to meet the minimum purchase requirement for each individual franchise. This obligation ensures that franchisees are actively using and promoting Chem Dry products in their businesses.
The yearly minimum purchase amount is subject to increase, but not more than once per calendar year, to reflect increases in the Consumer Price Index (CPI). This adjustment helps Chem Dry maintain the value of the required purchases in line with inflation. Franchisees should factor this minimum purchase requirement into their operating costs and business planning for each Chem Dry franchise they operate.