When is the Chem Dry yearly minimum purchase amount due?
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 is due annually. This means that each Chem Dry franchisee must purchase a minimum of $3,244.50 of proprietary products from Chem Dry each calendar year for each franchise they own.
The minimum purchase amount is subject to an increase, but not more than once each calendar year, to reflect increases in the Consumer Price Index (CPI). This means the amount could change year to year based on inflation.
For a prospective Chem Dry franchisee, it's important to factor this annual expense into their budget. Failing to meet this minimum purchase requirement could potentially lead to a breach of the franchise agreement.