Dryer_Vent_Squad 2024 Franchise FAQ - FDD Ninja

Question 1

According to the Dryer Vent Squad financial performance representation, what is the average revenue for all franchises?

Accepted Answer

![](_page_45_Picture_0.jpeg)

| TOP 5% | 1 | 2 | 2 | 392,571 |
|---|---|---|---|---|
| 1st Quartile | 5 | 9 | 1.8 | 273,299 |
| 2nd Quartile | 5 | 10 | 2 | 176,969 |
| 3rd Quartile | 6 | 6 | 1 | 108,569 |
| 4th Quartile | 5 | 7 | 1.3 | 64,782 |
| Bottom 5% | 2 | 2 | 1 | 41,977 |
| TOTAL | 21 | 32 | 1.5 | 153,651 |
| Group Ranked by | Max Revenue per owner | Minimum Revenue per | Average revenue Per |
| Average revenue |  | owner | Active Owner |
|---|---|---|---|
| TOP 5% | 392,571 | 392,571 | 392,571 |
| 1st Quartile | 392,571 | 212,671 | 273,299 |
| 2nd Quartile | 204,581 | 153,067 |

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–47)

Question 2

According to Section 51-19-09 of the North Dakota Franchise Investment Law, what provisions are considered unfair, unjust, and inequitable for Dryer Vent Squad franchisees?

Accepted Answer

[Item 23: RECEIPTS]

The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Dryer Vent Squad Business will be located within the State of North Dakota.

- 1. Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the franchise agreement are not enforceable in North Dakota."
- 2. Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
- 3. Article 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
- 4. Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
- 5. Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
- 6. Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
- 7. Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
- 8. Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."

Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.

---

[Item 23: RECEIPTS]

- E. Any provision in the Franchise Agreement which designates jurisdiction or venue or requires the franchisee to agree to jurisdiction or venue in a forum outside of North Dakota is void with respect to any cause of action which is otherwise enforceable in North Dakota.
- F. Apart from civil liability as set forth in Section 51-19-12 of the N.D.C.C., which is limited to violations of the North Dakota Franchise Investment Law (registration and fraud), the liability of the franchisor to a franchisee is based largely on contract law. Despite the fact that those provisions are not contained in the franchise investment law, those provisions contain substantive rights intended to be afforded to North Dakota residents and it is unfair to franchise investors to require them to waive their rights under North Dakota Law.
- G. Any provision in the Franchise Agreement requiring that the Franchise Agreement be construed according to the laws of a state other than North Dakota are unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
- H. Any provision in the Franchise Agreement which requires a franchisee to waive his or her right to a jury trial has been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.

[Item 23: RECEIPTS]

- 3. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
  - A. Any provision requiring a franchisee to sign a general release upon renewal of the franchise agreement has been determined to be unfair, unjust and inequitable within the intent of Section 51- 19-09 of the North Dakota Franchise Investment Law.
  - B. Any provision requiring a franchisee to consent to termination or liquidation damages has been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
  - C. Covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statute, are unfair, unjust and inequitable. Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota.
  - D. Any provision in the Franchise Agreement requiring a franchisee to agree to the arbitration or mediation of disputes at a location that is remote from the site of the franchisee's business has been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The site of arbitration or mediation must be agreeable to all parties and may not be remote from the franchisee's place of business.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 3

According to the table, how many new company-owned Dryer Vent Squad outlets are projected to open in the next fiscal year?

Accepted Answer

| State | Franchise Agreement Signed but Outlet Not Opened | Projected New Franchised Outlet in the Next Fiscal Year | Projected New Company Owned Outlets in the Next Fiscal Year |
|---|---|---|---|
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Alabama | 0 | 2 | 0 |
| Georgia | 0 | 2 | 0 |
| New Hampshire | 0 | 1 | 0 |
| Nevada | 0 | 2 | 0 |
| Missouri | 0 | 1 | 0 |
| Tennessee | 0 | 2 | 0 |
| Florida | 0 | 3 | 0 |
| Nebraska | 0 | 1 | 0 |
| Totals | 0 | 14 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 4

What conditions must a Dryer Vent Squad franchisee meet to obtain franchisor approval for a transfer?

Accepted Answer

| j. | Assignment of the contract by | 14.A. | No restriction on our right to assign. |
|----|-----------------------------------------------------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | franchisor |  |  |
| k. | "Transfer" by franchisee definition | 14.B. | A transfer means and includes, whether voluntary or involuntary, conditional or unconditional, direct or indirect: (a) an assignment, sale, gift, transfer, pledge or sub-franchise; (b) the grant of a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; and (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to control the operations or affairs of Franchisee. |
| l. | Franchisor's approval of transfer by franchisee | 14.B. | Transfers require our prior written consent, which may be granted or withheld in our discretion. |
| m. | Conditions for franchisor's approval of transfer | 14.C. | For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under t

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–45)

Question 5

What is the estimated total range of initial fees for a Dryer Vent Squad franchise?

Accepted Answer

| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
|  |  |  |  |  |
|  |  |  |  |  |
| Initial Franchise Fee | $35,000 | Lump sum | When Franchise | Us |
| (Note 1) |  |  | Agreement is signed |  |
| Construction and Leasehold Improvements (Note 2) | $0 – $2,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Equipment | $1,500 | As arranged | As incurred | Suppliers |
| (Note 3) |  |  |  |  |
| Initial Inventory | $2,400 | As arranged | As incurred | Suppliers |
| (Note 4) |  |  |  |  |
| Computer, Software | $150 – $500 | As arranged | As incurred | Suppliers |
| and Point of Sales |  |  |  |  |
| System (Note 5) |  |  |  |  |
| Service Vehicle | $1,000 – $4,000 | As arranged | As incurred | Automobile dealers |
| (Note 6) |  |  |  |  |
| Start-Up Marketing – | $5,500 | As arranged | As incurred | Us, Suppliers |
| Three Months (Note 7) |  |  |  |  |
| Insurance Deposits – | $500 – $3,000 | As arranged | As incurred | Insurers |
| Three Months (Note 8) |  |  |  |  |
| Travel for Initial | $500 – $2,000 | As arranged | As incurred | Airlines, hotels, restaurants |
| Training (Note 9) |  |  |  |  |
| Professional Fees (Note | $500 – $1,500 | As arranged | As incurred | Attorneys, accountants, |
| 10) |  |  |  | advisors |
| Licenses and Permits | $500 – $1,500 | As arranged | As incurred | Government |
| (Note 11) |  |  |  |  |
| Additional Funds – Three Months (Note 12) | $5,000 – $10,000 | As arranged | As incurred | Us, employees, suppliers, landlord, utility suppliers |
| Total Estimate (Note 13) | $52,050 – $68,400 |  |  |  |

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 6

How many Dryer Vent Squad outlets opened in Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Kentucky, and Louisiana in 2021?

Accepted Answer

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
|  |  |  |  |  |  |  |  |  |
| Alabama | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Arizona | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
| Colorado | 2021 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 1 | 0 | 0 | 0 | 0 | 4 |
| Florida | 2021 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 3 | 2 | 0 | 0 | 0 | 3 |
| Georgia | 2021 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
| Indiana | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kentucky | 2021 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 1 | 0 | 0 | 0 | 2 |
| Louisiana | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 7

How many Dryer Vent Squad outlets were terminated across all listed states in 2022?

Accepted Answer

2022 | 0 |
|  | 2023 | 0 |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

# **TABLE NO. 3 STATUS OF FRANCHISED OWNED OUTLETS FOR YEARS 2019 to 2021**

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
|  |  |  |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 8

Did any Dryer Vent Squad outlets have non-renewals in 2023?

Accepted Answer

2022 | 0 |
|  | 2023 | 0 |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

# **TABLE NO. 3 STATUS OF FRANCHISED OWNED OUTLETS FOR YEARS 2019 to 2021**

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
|  |  |  |  |  |  |  |  |  |
| Alabama | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Arizona | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
| Colorado | 2021 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 1 | 0 | 0 | 0 | 0 | 4 |
| Florida | 2021 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 3 | 2 | 0 | 0 | 0 | 3 |
| Georgia | 2021 | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
|  | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
| Indiana | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Kentucky | 2021 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 1 | 0 | 0 | 0 | 2 |
| Louisiana | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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| Massachusetts | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|---|---|---|---|---|---|---|---|---|
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 3 | 0 | 0 | 0 | 0 | 4 |
| Mississippi | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| New Jersey | 2021 | 4 | 1 | 0 | 0 | 0 | 1 | 4 |
|  | 2022 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 5 | 2 | 0 | 0 | 0 | 7 |
| New York | 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 9

In which states did the number of Dryer Vent Squad outlets remain unchanged from the start to the end of 2022?

Accepted Answer

2 | 31 | 0 | 3 | 0 | 0 | 0 | 28 |
|  | 2023 | 28 | 27 | 9 | 0 | 0 | 0 | 46 |
# **TABLE NO. 4 STATUS OF COMPANY OWNED OUTLETS FOR YEARS 2021 to 2023**

| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired by Franchisor | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of Year |
|---|---|---|---|---|---|---|---|
| New York | 2021 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 1 | 0 | 0 |
| Total | 2021 | 0 | 1 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 1 | 0 | 0 |
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# **TABLE NO. 5 PROJECTED OPENINGS AS OF JANUARY 1, 2024**

| State | Franchise Agreement Signed but Outlet Not Opened | Projected New Franchised Outlet in the Next Fiscal Year | Projected New Company Owned Outlets in the Next Fiscal Year |
|---|---|---|---|
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Alabama | 0 | 2 | 0 |
| Georgia | 0 | 2 | 0 |
| New Hampshire | 0 | 1 | 0 |
| Nevada | 0 | 2 | 0 |
| Missouri | 0 | 1 | 0 |
| Tennessee | 0 | 2 | 0 |
| Florida | 0 | 3 | 0 |
| Nebraska | 0 | 1 | 0 |
| Totals | 0 | 14 | 0 |
## Notes to Tables:

**If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.**

During the last three fiscal years, no current or former franchisees have signed confidentiality clauses with us that restrict them from discussing with you their experiences as a franchisee in our franchise system. There are no trademark-specific franchisee organizations associated with the franchise system being offered in this Franchise Disclosure Document.

Exhibit F to this Disclosure Document contains a list of our then current franchisees as of the end of the Issuance Date of this Disclosure Document.

Exhibit G to this Disclosure Document contains a list of franchisees that had an outlet terminated, cancelled, not renewed or otherwise voluntarily or involuntarily ceased to do business under our franchise agreement during our most recently completed fiscal year or who has not communicated with us within 10 weeks of the Issuance Date of this Disclosure Document.

## **ITEM 21 FINANCIAL STATEMENTS**

Attached as Exhibit D are our audited financial statements comprised of our 3/20/2024 audited opening balance sheet. Because we have not been established for three years or more, we do not have three years of audited financial statements.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 10

In which states did Dryer Vent Squad open more than one outlet in 2021?

Accepted Answer

2022 | 0 |
|  | 2023 | 0 |
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

# **TABLE NO. 3 STATUS OF FRANCHISED OWNED OUTLETS FOR YEARS 2019 to 2021**

| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non Renewals | Reacquired by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
|  |  |  |  |  |  |  |  |  |
| Alabama | 2021 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 11

What is the total estimated initial investment range to begin operating a Dryer Vent Squad franchise?

Accepted Answer

| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
|  |  |  |  |  |
|  |  |  |  |  |
| Initial Franchise Fee | $35,000 | Lump sum | When Franchise | Us |
| (Note 1) |  |  | Agreement is signed |  |
| Construction and Leasehold Improvements (Note 2) | $0 – $2,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Equipment | $1,500 | As arranged | As incurred | Suppliers |
| (Note 3) |  |  |  |  |
| Initial Inventory | $2,400 | As arranged | As incurred | Suppliers |
| (Note 4) |  |  |  |  |
| Computer, Software | $150 – $500 | As arranged | As incurred | Suppliers |
| and Point of Sales |  |  |  |  |
| System (Note 5) |  |  |  |  |
| Service Vehicle | $1,000 – $4,000 | As arranged | As incurred | Automobile dealers |
| (Note 6) |  |  |  |  |
| Start-Up Marketing – | $5,500 | As arranged | As incurred | Us, Suppliers |
| Three Months (Note 7) |  |  |  |  |
| Insurance Deposits – | $500 – $3,000 | As arranged | As incurred | Insurers |
| Three Months (Note 8) |  |  |  |  |
| Travel for Initial | $500 – $2,000 | As arranged | As incurred | Airlines, hotels, restaurants |
| Training (Note 9) |  |  |  |  |
| Professional Fees (Note | $500 – $1,500 | As arranged | As incurred | Attorneys, accountants, |
| 10) |  |  |  | advisors |
| Licenses and Permits | $500 – $1,500 | As arranged | As incurred | Government |
| (Note 11) |  |  |  |  |
| Additional Funds – Three Months (Note 12) | $5,000 – $10,000 | As arranged | As incurred | Us, employees, suppliers, landlord, utility suppliers |
| Total Estimate (Note 13) | $52,050 – $68,400 |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)

Question 12

What is the total number of new Dryer Vent Squad franchised outlets projected to open in the next fiscal year across all listed states?

Accepted Answer

| State | Franchise Agreement Signed but Outlet Not Opened | Projected New Franchised Outlet in the Next Fiscal Year | Projected New Company Owned Outlets in the Next Fiscal Year |
|---|---|---|---|
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Alabama | 0 | 2 | 0 |
| Georgia | 0 | 2 | 0 |
| New Hampshire | 0 | 1 | 0 |
| Nevada | 0 | 2 | 0 |
| Missouri | 0 | 1 | 0 |
| Tennessee | 0 | 2 | 0 |
| Florida | 0 | 3 | 0 |
| Nebraska | 0 | 1 | 0 |
| Totals | 0 | 14 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 13

What was the total number of Dryer Vent Squad outlets at the end of 2021?

Accepted Answer

state regulatory agencies.

# **ITEM 20 OUTLETS AND FRANCHISEE INFORMATION**

# **TABLE NO. 1 SYSTEMWIDE OUTLET SUMMARY FOR YEARS 20219 to 2023**

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|--

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–50)

Question 14

What was the fine that Patch Boys Franchising, Inc. had to pay according to the Assurance of Discontinuance, and does Dryer Vent Squad have any similar obligations?

Accepted Answer

., and Leiby Goldberger a/k/a Leo Goldberger, AOD #16-151. On September 12, 2016, the Office of the Attorney General of the State of New York and Patch Boys Franchising, Inc. and Leiby Goldberger (collectively, "Patch Boys") entered into an Assurance of Discontinuance Pursuant to Executive Law § 63(12) (the "Assurance"). Under the Assurance, Patch Boys acknowledged that it sold franchises without disclosing a 1999 felony conviction of Leiby Goldberger in the Franchise Disclosure Document, as required under GBL § 683(2)(e)(1)

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and 13 N.Y.C.R.R. Section 200.2(c). Patch Boys agreed to: pay a \$10,000 fine; offer rescission to its existing franchisees; and comply with the provisions of the Franchise Sales Act and not sell or offer franchises within or from the sta

Source: Item 3 — LITIGATION (FDD pages 11–15)

Question 15

If a Dryer Vent Squad franchisee receives financing for the initial franchise fee (Item 10), how does this affect the payment schedule outlined in Item 7?

Accepted Answer

the third-party financing provider. We do not guarantee your note, lease or obligation.

If we make financing available to you, we will provide a promissory note (a "Note") for the amount financed. You will be responsible for repayment of the Note, including finance charges and interest and, if you are a Corporate Entity, you individual owners must personally guaranty the repayment of the Note and the payment of all sums due under the Note. You are required to return an original signed copy of the Note to us. We have the right to assign your Note to a third party. Additionally, if you enter into a Note with us for a new Dryer Vent Squad Business, we require that you open the Dryer Vent Squad Business within six months of your receipt of the funding provided under the Note.

If we make financing available to you, the applicable financing terms are described below:

| Finance Type | e | Operating Territory Type: Single Territory | Operating Territory Type: Double Territory |
|---|---|---|---|
| Amount Financed |  | Up to $14,000 of Initial Franchise Fee | Up to $28,000 of Initial Franchise Fee |
| Down Payment |  | Minimum of $21,000 | Minimum of $42,000 |
| Term |  | Up to two (2) years | Up to two (2) years |
| Finance Charges |  | Ten percent (10%) APR | Ten percent (10%) APR |
| Payment Amount |  | Depends on amount financed with repayment self-amortized over two (2) year repayment period with monthly installments of principal and interest paid monthly. |  |
| Payment Terms |  | Payable monthly over two (2) year repayment period with monthly installments of principal and interest paid monthly. No early pre-payment penalty. |  |
| Security Required |  | Personal guaranty by you and if you are a Corporate Entity then personal guaranty by each individual owner. Additional security in the form of a security agreement related to the assets of the Franchised Business and the filing of a UCC-1. |  |
| Liability Upon Default |  | Personal liability for the amount financed, plus interest, collection costs and legal fees. Additionally, default of Franchise Agreement and loss of franchise rights in the Franchised Business and other legal and equitable remedies available to us. |  |
| Loss of Legal Rights on Default |  | Cross-default of Franchise Agreement. Waiver of notice of default and loss of defenses |  |
| Referral Fee |  | Not applicable.

Question 16

If a Dryer Vent Squad franchisee receives financing for the initial franchise fee (Item 10), how does this impact the payment schedule in Item 7?

Accepted Answer

Note 12: Additional Funds – This is an estimate of the minimum recommended levels of additional funds that may be required to cover operating expenses such as employee salaries, inventory, rent, and utilities only for the initial 3-month period following the opening of your Dryer Vent Squad Business. This estimate does not include compensation to you or your owners and does not include interest, finance charges, or payments that may be incurred by you if you financed the development of your Dryer Vent Squad Business. In making this estimate, we have relied on the experiences of our affiliate in developing and operating a Dryer Vent Squad Business. This is only an estimate for your initial three months of operations and more working capital and additional funds may be required depending on the sales and performance of your Dryer Vent Squad Business. Before signing a Franchise Agreement, you should consult with your accountant and advisor to budget and determine the amount of additional funds that should be reserved and set aside by you to support and capitalize the long-term operations of your Dryer Vent Squad Business.

Question 17

If Dryer Vent Squad offers financing for the initial franchise fee (Item 10), how does this affect the initial franchise fee payment due date listed in Item 7?

Accepted Answer

BLANK]

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## **ITEM 10 FINANCING**

We may, in our discretion, offer direct financing to you of your Initial Franchise Fee. We are not obligated to provide this financing to you and our election to provide financing of your Initial Franchise Fee will be based on factors internal to us, as determined by us from time-to-time. We reserve the right to form or designate additional affiliates as potential lenders in the future. We may in the future also provide indirect financing through third parties and receive referral fees from these third-party providers. The terms of your financing with third parties will vary. If you request indirect financing, we may receive a referral fee from the third-party financing provider. We do not guarantee your note, lease or obligation.

If we make financing available to you, we will provide a promissory note (a "Note") for the amount financed. You will be responsible for repayment of the Note, including finance charges and interest and, if you are a Corporate Entity, you individual owners must personally guaranty the repayment of the Note and the payment of all sums due under the Note. You are required to return an original signed copy of the Note to us. We have the right to assign your Note to a third party. Additionally, if you enter into a Note with us for a new Dryer Vent Squad Business, we require that you open the Dryer Vent Squad Business within six months of your receipt of the funding provided under the Note.

If we make financing available to you, the applicable financing terms are described below:

| Finance Type | e | Operating Territory Type: Single Territory | Operating Territory Type: Double Territory |
|---|---|---|---|
| Amount Financed |  | Up to $14,000 of Initial Franchise Fee | Up to $28,000 of Initial Franchise Fee |
| Down Payment |  | Minimum of $21,000 | Minimum of $42,000 |
| Term |  | Up to two (2) years | Up to two (2) years |
| Finance Charges |  | Ten percent (10%) APR | Ten percent (10%) APR |
| Payment Amount |  | Depends on amount financed with repayment self-amortized over two (2) year repayment period with monthly installments of principal and interest paid monthly. |  |
| Payment Terms |  | Payable monthly over two (2) year repayment period with monthly installments of principal and interest paid monthly. No early pre-payment penalty. |  |
| Security Required |  | Personal guaranty by you and if you are a Corporate Entity then personal guaranty by each individual owner. Additional security in the form of a security agreement related to the assets of the Franchised Business and the filing of a UCC-1. |  |
| Liability Upon Default |  | Personal liability for the amount financed, plus interest, collection costs and legal fees.

Question 18

How does the Dryer Vent Squad's Item 10 financing option potentially affect the 'When Due' column for the Initial Franchise Fee in Item 7?

Accepted Answer

We may, in our discretion, offer direct financing to you of your Initial Franchise Fee. We are not obligated to provide this financing to you and our election to provide financing of your Initial Franchise Fee will be based on factors internal to us, as determined by us from time-to-time. We reserve the right to form or designate additional affiliates as potential lenders in the future. We may in the future also provide indirect financing through third parties and receive referral fees from these third-party providers. The terms of your financing with third parties will vary. If you request indirect financing, we may receive a referral fee from the third-party financing provider. We do not guarantee your note, lease or obligation.

If we make financing available to you, we will provide a promissory note (a "Note") for the amount financed. You will be responsible for repayment of the Note, including finance charges and interest and, if you are a Corporate Entity, you individual owners must personally guaranty the repayment of the Note and the payment of all sums due under the Note. You are required to return an original signed copy of the Note to us. We have the right to assign your Note to a third party. Additionally, if you enter into a Note with us for a new Dryer Vent Squad Business, we require that you open the Dryer Vent Squad Business within six months of your receipt of the funding provided under the Note.

Question 19

How does the Dryer Vent Squad's Item 11 obligation to grant a franchise relate to the initial franchise fee detailed in Item 5?

Accepted Answer

- 1.

Grant of Franchise We will grant to you the right to operate the Franchised Business within a designated operating territory. (Franchise Agreement, Article 2);

Note 1: Initial Franchise Fee – The Initial Franchise Fee is $35,000 for a single base Operating Territory comprising a Single Territory of approximately 250,000 to 350,000 people.

## **2.A. GRANT OF FRANCHISE**

Franchisee has requested that Franchisor grant to Franchisee the non-exclusive license and right to develop, own and operate a Dryer Vent Squad Business within a specified territory.

Question 20

How does the Minimum Monthly Royalty Fee Requirement for a Dryer Vent Squad franchise vary based on whether a Single or Double Territory is purchased?

Accepted Answer

Your Minimum Monthly Royalty Fee Requirement and local marketing expenditure will vary depending on if you purchase a Single Territory or a Double Territory.

Source: Item 12 — TERRITORY (FDD pages 36–38)

Question 21

How does the Dryer Vent Squad's obligation to grant a franchise (Item 11) relate to the initial franchise fee (Item 5) and the estimated initial investment (Item 7)?

Accepted Answer

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

# **ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING**

**Except as listed below, we are not required to provide you with any assistance.**

## **Pre-Opening Obligations**

- 1.

Grant of Franchise We will grant to you the right to operate the Franchised Business within a designated operating territory. (Franchise Agreement, Article 2);

[Item 7: ESTIMATED INITIAL INVESTMENT]

Note 1: Initial Franchise Fee – The Initial Franchise Fee is $35,000 for a single base Operating Territory comprising a Single Territory of approximately 250,000 to 350,000 people.

Note 13: About Your Estimated Initial Investment – This is an estimate of the initial start-up expenses for a Dryer Vent Squad Business. We have based these estimates on the experiences of our affiliate and our franchisees in developing a Dryer Vent Squad Business. These are only estimates and your costs and the range of those costs, may vary. Factors that may influence your costs include: the size of your Dryer Vent Squad Business; local geographic market and economic conditions including rent, labor, and construction rates; local licensing costs; competition; the capabilities of your management team; and the level of sales achieved by your Dryer Vent Squad Business. These estimates do not include interest and financing charges that you may incur and they do not include management level compensation payable to you or your owners. You should carefully review these estimates with your business, accounting and legal advisors before making any decision to sign a Franchise Agreement. These estimates are for one Dryer Vent Squad Business only.

Within 90 days from the signing of your Franchise Agreement you must open and offer services and products of your Dryer Vent Squad Business to the customers within your Operating Territory. We estimate that the length of time between the signing of your Franchise Agreement and opening your Dryer Vent Squad Business to be one to three months. Factors that may affect this estimated time period include the length of time undertaken by you to satisfactorily complete our initial training program, obtaining third-party lender financing, if necessary, obtaining the necessary licenses, training staff, and leasing and wrapping a service vehicle that meets our standards and specifications.

Since you may administratively manage your Dryer Vent Squad Business from your home there is no required time period within which you must secure a commercial office location. If you do not meet our requirements for site selection, we may terminate your Franchise Agreement without refunding any fees to you. It is your obligation to consult with government agencies, architects and legal professionals to evaluate and determine that your site permits the establishment and operation of the Franchised Business and that you possess the necessary licenses and authority to operate the Franchised Business. (Franchise Agreement, Article 3).

Question 22

How does the Dryer Vent Squad's obligation to grant a franchise in Item 11 relate to the payment of the initial franchise fee in Item 5 and the estimated initial investment in Item 7?

Accepted Answer

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

# **ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING**

**Except as listed below, we are not required to provide you with any assistance.**

## **Pre-Opening Obligations**

- 1.

Grant of Franchise We will grant to you the right to operate the Franchised Business within a designated operating territory. (Franchise Agreement, Article 2);

- 2.

Site Review and Approval of Operating Territory At the time of signing your Franchise Agreement you will have selected and we will have approved of the Operating Territory within which you will operate the Franchised Business. (Franchise Agreement, Article 2).

If permitted by law, you may manage your Dryer Vent Squad Business from a home based administrative office.

If you elect to lease a back-end administrative office and/or operations center, your administrative office and/or operations center must be located within your Operating Territory and be approved by us;

Question 23

What was the outcome of the investigation by the Attorney General of the State of New York regarding Patch Boys Franchising, Inc., and how does it relate to Dryer Vent Squad?

Accepted Answer

exemption under the Minnesota Franchise Act has been met.

In the Matter of Investigation by Eric T. Schneiderman, Attorney General of the State of New York, of Patch Boys Franchising, Inc., and Leiby Goldberger a/k/a Leo Goldberger, AOD #16-151. On September 12, 2016, the Office of the Attorney General of the State of New York and Patch Boys Franchising, Inc. and Leiby Goldberger (collectively, "Patch Boys") entered into an Assurance of Discontinuance Pursuant to Executive Law § 63(12) (the "Assurance"). Under the Assurance, Patch Boys acknowledged that it sold franchises without disclosing a 1999 felony conviction of Leiby Goldberger in the Franchise Disclosure Document, as required under GBL § 683(2)(e)(1)

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and 13 N.Y.C.R.R. Section 200.2(c). Patch Boys agreed to: pay a \$10,000 fine; offer rescission to its existing franchisees; and comply with the provisions of the Franchise Sales Act and not sell or offer franchises within or from the sta

Source: Item 3 — LITIGATION (FDD pages 11–15)

Question 24

What is the relationship between the initial franchise fee for a single territory Dryer Vent Squad franchise (Item 5) and the estimated initial investment for that territory (Item 7)?

Accepted Answer

ent Squad Business only.

## **B. Operating Territory: Double Territory**

| Type of Expenditure                                                        | Amount                     | Method of Payment | When Due                                                                           | To Whom Payment is Made                                                                          |
|----------------------------------------------------------------------------|----------------------------|----------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
| Initial Franchise Fee (Note | \$70,000 | Lump sum | When Franchise | Us |
| 1) |  |  | Agreement is signed |  |
| Estimated Initial Investment to Open (Note 2) Single Territory | \$17,050 – \$33,400 |  | Chart A, above, of this Item 7, for a Single Initial Franchise Fee for a Single | Estimated Initial Investment is based on estimate contained in Territory, less the Territory. |
| Total Estimate (Note 3) | \$87,050 – \$103,400 |  |  |  |
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## Explanatory Notes to Item 7 for a Double Territory

Note 1: Initial Franchise Fee – The Initial Franchise Fee for an operating territory that comprises and qualifies as a Single Territory is \$35,000. The Initial Franchise Fee for an operating territory that comprises and qualifies as a Double Territory is \$70,000.

Note 2: Estimated Initial Investment – This is the estimated initial investment for the development of an operating territory comprising a Single Territory, less the Initial Franchise Fee for a Single Territory. It is important to review Table A of this Item 7 and the Explanatory Notes to Table A in detail.

Note 3: Total Estimate – This is the total estimated investment for the development of an operating territory comprising a Double Territory.

Question 25

When is DVS Holdings, Inc. required to furnish a New York prospectus to a prospective Dryer Vent Squad franchisee?

Accepted Answer

- 4. There are circumstances in which an offering made by DVS Holdings, Inc.would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. DVS Holdings, Inc.is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 26

Within how many months of receiving funding under the Note must a Dryer Vent Squad Business be opened?

Accepted Answer

Additionally, if you enter into a Note with us for a new Dryer Vent Squad Business, we require that you open the Dryer Vent Squad Business within six months of your receipt of the funding provided under the Note.

Source: Item 10 — FINANCING (FDD pages 29–30)

Question 27

According to the Dryer Vent Squad FDD, what factors determine if pending actions, other than routine litigation, are considered 'significant' enough to warrant disclosure, considering the number of franchisees and the franchise system's financial condition?

Accepted Answer

Amendments to the Dryer Vent Squad Franchise Disclosure Document

- 1. Item 3 "Litigation," is supplemented by the addition of the following:
  - A. Neither the Franchisor nor any person identified in Items 1 or 2 above has any administrative, criminal or material civil action (or a significant number of civil actions irrespective of materiality) pending against him alleging a violation of any franchise law, fraud, embezzlement, fraudulent conversion, restraint of trade, unfair or deceptive practices, business opportunity law, securities law, misappropriation of property or comparable allegations.
  - B. Neither the Franchisor nor any other person identified in Items 1 or 2 above has during the 10 year period immediately preceding the date of this Disclosure Document, been convicted of a felony or pleaded nolo contendere to a felony charge or been held liable in any civil action by final judgment, or been the subject of any material complaint or other legal proceeding where a felony, civil action, complaint or other legal proceeding involved violation of any franchise law, fraud, embezzlement, fraudulent conversion, restraint of trade, unfair or deceptive practices, business opportunity law, securities law, misappropriation of property or comparable allegations or which was brought by a present or former purchaser-investor or which involves or involved the business opportunity relationship.
  - C. Neither the Franchisor nor any person identified in Items 1 or 2 above is subject to any currently effective injunctive or restrictive order or decree relating to the franchise, or under any federal, state or Canadian franchise, securities, business opportunity, antitrust, trade regulation or trade practice law as a result of concluded or pending action or proceeding brought by a public agency, or is a party to a proceeding currently pending in which an order is sought, relating to or affecting business opportunity activities or the seller-purchaser-investor relationship, or involving fraud, including but not limited to, a violation of any business opportunity law, franchise law, securities law or unfair or deceptive practices law, embezzlement, fraudulent conversion, misappropriation of property or restraint of trade.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 28

According to the Dryer Vent Squad FDD, what must a franchisee do to ensure protection against claims of infringement?

Accepted Answer

We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.

Source: Item 13 — TRADEMARKS (FDD pages 38–39)

Question 29

According to the Dryer Vent Squad franchise agreement, what happens if a franchisee fails to pay a third-party supplier, and what justification might prevent this from being a default?

Accepted Answer

- (c) Franchisee fails or refuses, at any time, and, without legal justification as may be determined by Franchisor in Franchisor's Reasonable Business Judgment, to pay any third-party supplier or vendor for any goods, products, supplies, equipment, materials and/or any other items used by, benefitting, and/or intended to benefit the Franchised Business.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 30

According to the New York Franchise Agreement Amendment, what rights and causes of action arising in favor of the franchisee from the provisions of New York General Business Law Sections 680-695 remain in force for Dryer Vent Squad?

Accepted Answer

## **NEW YORK FRANCHISE AGREEMENT AMENDMENT**

Amendments to the Dryer Vent Squad Franchise Agreement:

In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached DVS Holdings, Inc. Franchise Agreement (the "Franchise Agreement"):

---

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 31

What actions must a Dryer Vent Squad franchisee take to be eligible for reimbursement of trademark defense costs?

Accepted Answer

If Franchisee is sued in a legal proceeding or is threatened with legal action and/or a notice of infringement by a third party where the claims and/or causes of action directly relate to a third party claiming trademark infringement, unfair competition, and/or trademark dilution as a result of Franchisee's use of the Licensed Marks in accordance with the terms of this Agreement and the System (the "IP Claim"), then Franchisor shall indemnify Franchisee for the reasonable and direct costs incurred by Franchisee and/or a judgment entered against Franchisee, provided: (a) Franchisee immediately notified Franchisor of the IP Claim by a written notice sent to Franchisor via priority overnight courier; (b) Franchisee provided and afforded Franchisor the absolute opportunity and right to defend against the IP Claim and to select and appoint legal counsel of Franchisor's choosing; and (c) Franchisee utilized the Licensed Marks in accordance with the terms of this Agreement and the System. Franchisee agrees that time is of the essence with respect to notifying Franchisor of the IP Claim in accordance with this Agreement, including this Article 11.E.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 32

What additional training, if any, may a Dryer Vent Squad franchisee and their Owners be required to complete prior to the Renewal Term?

Accepted Answer

- (10) At the transferee's expense, the transferee, and the transferee's managing owner, managers and/or any other applicable employees of transferee's Dryer Vent Squad Business must complete any training programs then in effect for franchisees of Dryer Vent Squad Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 33

Can Dryer Vent Squad administer System-wide marketing funds?

Accepted Answer

- 7.

Administration of Marketing Funds We may administer and manage System-wide marketing funds comprised of a Brand Development Fund and/or Advertising Cooperative. (Franchise Agreement, Article 9);

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–36)

Question 34

Is the approval of a Dryer Vent Squad franchise transfer dependent on the franchisor not exercising their right of first refusal?

Accepted Answer

Provided Franchisee and each Owner, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 35

Is attendance at a Dryer Vent Squad System-Wide Training Program required after opening a Dryer Vent Squad Business?

Accepted Answer

In addition to initial training, you will also be required to participate in and satisfy all other training programs that we may designate respecting the Franchised Business (Franchise Agreement, Articles 4). After the opening of your Dryer Vent Squad Business, we reserve the right to require that you (or your managing owner if you are a corporate entity) attend a system-wide training program (the "System-Wide Training Program") that we may establish in our discretion. If we establish a System-Wide Training Program, the program will be offered from our affiliate owned Dryer Vent Squad Business in Lakewood, New Jersey and you will be responsible for all travel and expenses, lodging, food, automobile rental expenses and employee wages that you incur in connection with your attendance. We will not require your attendance at a System-Wide Training Program for more than a total of five days in any calendar year.

**Some of our training will be done through Zoom programs.**

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–36)

Question 36

In California, should prospective Dryer Vent Squad franchisees consult legal counsel regarding venue restrictions in the franchise agreement?

Accepted Answer

Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.

- G. The franchise agreement requires application of the laws of the State of New Jersey. This provision may not be enforceable under California law.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 37

What condition must Dryer Vent Squad meet before offering or selling new franchises in Minnesota, given Leo Goldberger's past involvement with Patch Boys?

Accepted Answer

land while Frost Shades was not registered with the State.

In the Matter of Patch Boys Franchising, LLC, A Delaware Limited Liability Company, File No. 54957. As a result of an investigation into the franchise related activities of Patch Boys Franchising, LLC ("Patch Boys"), the Minnesota Commissioner of Commerce ("Commissioner") concluded that grounds existed to allege that Patch Boys violated the registration and disclosure provisions of the Minnesota Franchise Act in relation to the offer and sale of a Patch Boys franchise and a failure to obtain a signed Franchise Disclosure Document receipt page. The franchise sale occurred while a franchise renewal application was pending with the State and the Franchise Disclosure Document did not contain certain changes that were required by Minnesota State. Our CEO Leo Goldberger was President of Patch Boys during the foregoing actions investigated by the Commissioner and on June 10, 2021, the Commissioner and Patch Boys entered into a consent order whereby Patch Boys and our CEO Leo Goldberger agreed to: pay a penalty in the amount of \$7,500 to the State; refrain from the offer and sale of franchises in violation of the Minnesota Franchise Act; and agreed that any new franchises offered or sold in Minnesota will not be made until registration is complete or qualification for a

Source: Item 3 — LITIGATION (FDD pages 11–15)

Question 38

What is the condition that triggers the Dryer Vent Squad audit fee?

Accepted Answer

| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit plus expensed incurred | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated period. Includes expenses incurred by us

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 39

What is the condition that triggers the Dryer Vent Squad quality assurance audit fee?

Accepted Answer

| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
|  |  |  | including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the franchise agreement or a termination of the franchise agreement. Includes costs and expenses of re-inspections required by quality assurance audit.

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 40

What conditions must a Dryer Vent Squad franchisee meet to be indemnified for trademark infringement?

Accepted Answer

We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.

Source: Item 13 — TRADEMARKS (FDD pages 38–39)

Question 41

What conditions must a Dryer Vent Squad franchisee meet to obtain the Franchisor's consent to relocate their Administrative Office within their Operating Territory?

Accepted Answer

- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 42

What conditions must a Dryer Vent Squad franchisee meet to transfer the Franchise Agreement to a Corporate Entity?

Accepted Answer

Provided Franchisee and each Owner, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude and financial resources to own and operate a Dryer Vent Squad Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:

(1) Franchisee must provide written notice to Franchisor of the proposed Transfer of this Agreement at least 30 days prior to the Transfer, and Franchisee must have also satisfied the obligations set forth in Article 14.F. below;

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- (2) All accrued monetary obligations of Franchisee and all other outstanding obligations to Franchisor and/or Franchisor's affiliates under this Agreement and the Ancillary Agreements must be satisfied in a timely manner, and Franchisee must satisfy all trade, supplier, and vendor accounts and other debts, of whatever nature or kind, in a timely manner;

- (3) Franchisee and each Owner must not be in default or material breach of this Agreement or the Ancillary Agreements;

- (4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee shall personally execute the Franchise Owner Agreement and Individual Guaranty in the form attached to this Agreement as Exhibit 1;

- (5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, and each individual owner of transferee in a manner satisfactory to Franchisor;

- (6) Franchisee, and each Owner must execute the General Release attached to this Agreement as Exhibit 6 releasing Franchisor, Franchisor's Affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;

- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form franchise agreement offered to new franchisees of Dryer Vent Squad Businesses and any other agreements as Franchisor requires.

Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;

- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;

- (9) Franchisee, and each Owner shall remain liable for all obligations to Franchisor set forth in this Agreement;

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 43

What conditions must be met for Dryer Vent Squad to charge a transfer fee?

Accepted Answer

| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
|  |  |  | including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the franchise agreement or a termination of the franchise agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred | 14 days of invoice | You shall reimburse us for costs and expenses incurred if we pay any amount that you owe or are required to pay to a third party, plus an additional fee of 10% of the costs and expenses incurred by us. |
| Transfer | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers | On demand | Payable if we approve your transfer request and upon signing our then current franchise agreement. |
| Renewal | 5% of our then current initial franchise fee | On signing renewal franchise agreement | Payable if we approve your renewal request and upon signing our then current franchise agreement. |

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 44

On what date do the parties execute and deliver the Maryland amendment to the Dryer Vent Squad Franchise Agreement?

Accepted Answer

IN WITNESS WHEREOF, the parties have duly executed and delivered this Maryland amendment to DVS Holdings, Inc. Franchise Agreement on the same date as the Franchise Agreement was executed.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 45

What is the dependency for paying the Dryer Vent Squad renewal fee?

Accepted Answer

| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
|  |  |  | including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the franchise agreement or a termination of the franchise agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred | 14 days of invoice | You shall reimburse us for costs and expenses incurred if we pay any amount that you owe or are required to pay to a third party, plus an additional fee of 10% of the costs and expenses incurred by us. |
| Transfer | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers | On demand | Payable if we approve your transfer request and upon signing our then current franchise agreement. |
| Renewal | 5% of our then current initial franchise fee | On signing renewal franchise agreement | Payable if we approve your renewal request and upon signing our then current franchise agreement. |

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 46

What is the dependency for paying the Dryer Vent Squad transfer fee?

Accepted Answer

| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
|  |  |  | including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the franchise agreement or a termination of the franchise agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred | 14 days of invoice | You shall reimburse us for costs and expenses incurred if we pay any amount that you owe or are required to pay to a third party, plus an additional fee of 10% of the costs and expenses incurred by us. |
| Transfer | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers | On demand | Payable if we approve your transfer request and upon signing our then current franchise agreement. |
| Renewal | 5% of our then current initial franchise fee | On signing renewal franchise agreement | Payable if we approve your renewal request and upon signing our then current franchise agreement. |

Source: Item 6 — OTHER FEES (FDD pages 16–21)

Question 47

Is DVS Holdings, Inc. required to furnish a New York prospectus to every prospective Dryer Vent Squad franchisee?

Accepted Answer

- 4. There are circumstances in which an offering made by DVS Holdings, Inc.would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. DVS Holdings, Inc.is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 48

What is the effect of the Minnesota Franchise Act on the choice of law provision in the Dryer Vent Squad Franchise Agreement for Dryer Vent Squad franchisees?

Accepted Answer

Minnesota law provides a franchisee with certain termination rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 daysnotice of termination (with 60 days to cure) of this Agreement.

- 8. Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
  - ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
- 9. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement:
  - ; except the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
- 10. Article 18.K. of the Franchise Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement:
  - ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.
- 11. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be supplemented by the addition of the following statement:
  - Under the Minnesota Franchise Act, any claims between the parties must be commenced within three years of the occurrence of the facts giving rise to such claim, or such claim shall be barred.
- 12. Article 18 of the Franchise Agreement, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
  - Any foregoing acknowledgments are not intended to nor shall they act as a release, estoppel or waiver or any liability under the Minnesota Franchise Act.
- 13. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Minnesota Franchise Act are met independently without reference to this amendment.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 49

What is the effect of the Minnesota Franchise Act on the governing law provision in the Dryer Vent Squad Franchise Agreement?

Accepted Answer

Minnesota law provides a franchisee with certain termination rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 daysnotice of termination (with 60 days to cure) of this Agreement.

- 8. Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
  - ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
- 9. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement:
  - ; except the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
- 10. Article 18.K. of the Franchise Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement:
  - ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.
- 11. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be supplemented by the addition of the following statement:
  - Under the Minnesota Franchise Act, any claims between the parties must be commenced within three years of the occurrence of the facts giving rise to such claim, or such claim shall be barred.
- 12. Article 18 of the Franchise Agreement, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
  - Any foregoing acknowledgments are not intended to nor shall they act as a release, estoppel or waiver or any liability under the Minnesota Franchise Act.
- 13. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Minnesota Franchise Act are met independently without reference to this amendment.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 50

In the event of a conflict of laws, which law prevails if required by the Maryland Franchise Registration and Disclosure Law for a Dryer Vent Squad franchise?

Accepted Answer

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:

- D. In the event of a conflict of laws if required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 51

In the event of the death or permanent disability of a Dryer Vent Squad franchisee, what must the transferee agree to in order for the transfer to be valid?

Accepted Answer

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- (2) All accrued monetary obligations of Franchisee and all other outstanding obligations to Franchisor and/or Franchisor's affiliates under this Agreement and the Ancillary Agreements must be satisfied in a timely manner, and Franchisee must satisfy all trade, supplier, and vendor accounts and other debts, of whatever nature or kind, in a timely manner;
- (3) Franchisee and each Owner must not be in default or material breach of this Agreement or the Ancillary Agreements;
- (4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee shall personally execute the Franchise Owner Agreement and Individual Guaranty in the form attached to this Agreement as Exhibit 1;
- (5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, and each individual owner of transferee in a manner satisfactory to Franchisor;
- (6) Franchisee, and each Owner must execute the General Release attached to this Agreement as Exhibit 6 releasing Franchisor, Franchisor's Affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form franchise agreement offered to new franchisees of Dryer Vent Squad Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, and each Owner shall remain liable for all obligations to Franchisor set forth in this Agreement;

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 52

In the event of a material breach by Dryer Vent Squad that cannot be cured within 30 days, what is the dependency for Dryer Vent Squad to be granted a reasonable time period to cure the breach?

Accepted Answer

of this Agreement, any amendment or successor agreement, and any of the Ancillary Agreements, and Franchisor materially breaches Franchisor's substantive and material obligations set forth in this Agreement, Franchisee may terminate this Agreement in the event of the following:

- (1) Franchisor does not correct the material breach within 30 days after Franchisor's receipt of Franchisee's written notice of such material breach to Franchisor; or
- (2) In a case where Franchisor's material breach cannot reasonably be cured within 30 days, within 30 days of Franchisor's receipt of Franchisee's written notice of Franchisor's material breach, Franchisor shall be provided a reasonable time period to cure such material breach provided that Franchisor provides reasonable evidence to Franchisee of Franchisor's current, continuing and/or planned efforts to correct the material breach within a reasonable time.

In either case, Franchisee's termination of this Agreement shall not take effect until expiration of the 30 day period set forth above and or such reasonable time period as necessary to cure the material breach, and Franchisee delivers to Franchisor a separate written notice of termination. The termination date must be 10 days after Franchisor's receipt of Franchisee's notice of termination. Franchisee's termination of this Agreement for any reason other than as set forth in this and in compliance with this Article 16.B. shall not constitute the termination of this Agreement and shall constitute a material breach of this Agreement by Franchisee.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 53

To what extent is each provision of the Dryer Vent Squad amendment effective, concerning the jurisdictional requirements of the New York General Business Law?

Accepted Answer

## **NEW YORK FRANCHISE AGREEMENT AMENDMENT**

Amendments to the Dryer Vent Squad Franchise Agreement:

In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached DVS Holdings, Inc. Franchise Agreement (the "Franchise Agreement"):

---

## **New York FDD Amendment**

Amendments to the Dryer Vent Squad Franchise Disclosure Document

1. The following information is added to the cover page of the Franchise Disclosure Document:

**INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 28 LIBERTY STREET, 21ST FLOOR, NEW YORK, NEW YORK 10005.**

**THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.**

2. The following is added at the end of **Item 3**:

United States of America v. Chaim Ruttner and Leiby Goldberger (United States District Court for the Southern District of New York, 1:98-mj-02630-UA-1). In 1999, Mr. Goldberger pleaded guilty to one count of conspiracy to commit credit card fraud, in violation of 18 U.S.C. § 1029(b)(2), and two substantive counts of credit card fraud, in violation of 18 U.S.C. §§ 1029(a)(2) and (a)(5). He was sentenced to prison for six months.

New York State Tax Lien filed Leiby Goldberger and/or Rachelle S. Goldberger, Docket Date August 12, 2014, Kings County, NY, Warrant ID# : E-040391291-W001-1. New York filed this State Tax Lien in the amount of $30,623.09. New York and Goldberger agreed to an installment payment plan on November 24, 2014, Goldberger paid the tax lien in full. Later in 2017 he received a partial refund from New York.

8. The following is added to the end of the "Summary" sections of **Item 17(v)**, titled "**Choice of forum

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 54

To what extent is each provision of the Maryland Franchise Agreement Amendment effective for Dryer Vent Squad franchises?

Accepted Answer

Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this amendment.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 55

Is flood and earthquake insurance required for Dryer Vent Squad franchisees, and under what condition?

Accepted Answer

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

## Insurance Requirements

- a) Coverage against direct physical loss or damage to real and personal property, including improvements and betterments, written on a special form peril basis, including flood and earthquake, if the relevant property is situated in a flood or earthquake zone, in an amount equal to 100% of the Franchised Businesses property value;
- b) Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury and property damage limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate;
- c) Statutory workers' compensation insurance as required by the law of the state in which the Franchised Business is located, with a limit of at least $1,000,000;
- d) Employer's liability insurance as required by the law of the state in which the Franchised Business is located, with a limit for bodily injury by accident of at least $500,000 and a limit for bodily injury by disease of at least $500,000, and an aggregate limit of at least $1,000,000;
- e) Business automobile insurance, including liability insurance coverage for hired and non-owned automobiles, with a combined single bodily injury and property damage limit of at least $1,000,000 per occurrence;
- f) Business interruption insurance equal to 12 months of your net income and continuing expenses, including Royalty Fees;
- g) Commercial umbrella liability insurance with a total liability limit of at least $2,500,000;
- h) Cyber Insurance in the amount of at least $1,000,000 protecting against first party and third party claims;
- i) Employment practices liability insurance with a limit of at least $1,000,000 including actions of a third party and a minimum limit of $100,000 for wage and hour disputes; and
- j) All other insurance that we require in the Manuals or that is required by law or by the lease or sublease for the Franchised Business.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)

Question 56

Does the Dryer Vent Squad franchise agreement allow a franchisee to withhold payments due to the franchisor if the franchisee claims the franchisor has not performed its obligations?

Accepted Answer

## **5.H. WITHHOLDING PAYMENTS UNLAWFUL**

Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 57

Does the Dryer Vent Squad franchise agreement specify any exceptions to the requirement that all outstanding obligations to the franchisor must be satisfied before a transfer?

Accepted Answer

or otherwise in violation of this Agreement including, but not limited to this Article 14.B. shall constitute a breach of this Agreement and shall convey to the transferee no rights or interests in this Agreement; and
- (5) In the event of a Transfer of this Agreement that is approved by Franchisor, Franchisee shall not be relieved of Franchisee's obligations under this Agreement whether said obligations accrued and/or arose prior to and/or after the date of Transfer.

# **14.C. CONDITIONS FOR APPROVAL OF TRANSFER**

Provided Franchisee and each Owner, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude and financial resources to own and operate a Dryer Vent Squad Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners may not own or operate, or intend to own or operate, a Competitive Business.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 58

How does the Dryer Vent Squad Franchise Agreement's choice of law, mediation, arbitration, and jurisdiction clause (Article 18.G) get amended with respect to the Minnesota Franchise Act?

Accepted Answer

- 9. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement:
  - ; except the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 59

How does the Dryer Vent Squad Franchise Agreement's governing law clause (Article 18.F) get amended with respect to the Minnesota Franchise Act?

Accepted Answer

- 8. Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
  - ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 60

Can a Dryer Vent Squad franchisee be authorized to operate outside the standard Advertising Cooperative guidelines, and if so, how?

Accepted Answer

- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Dryer Vent Squad Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) provided that Franchisee has obtained Franchisor's prior written consent which may be granted, denied, or modified by Franchisor, in Franchisor's Reasonable Business Judgment, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Dryer Vent Squad Business, all information and records related to the Approved Services and Products provided within the Open Area.

Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 61

Can a Dryer Vent Squad franchisee operate an Administrative Office from home?

Accepted Answer

- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;

"**Franchisee's Administrative Office**" refers to and means the Dryer Vent Squad Administrative Office from which Franchisee establishes, operates and manages the Franchised Business.

"**Administrative Office(s)**" refers to and means the fixed administrative offices and/or facilities from which Dryer Vent Squad Businesses are established, operated and managed.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 62

Does the Dryer Vent Squad franchisee have to pay the Brand Development Fund Fee if the Franchisor does not institute the Brand Development Fund?

Accepted Answer

ch charges, together with a reasonable administrative fee for Franchisor's expenses in so acting, shall be immediately payable by Franchisee to Franchisor upon demand. The foregoing remedies are in addition to any other remedies Franchisor may have under this Agreement, at law, or in equity.

## **ARTICLE 9 BRAND DEVELOPMENT AND MARKETING**

Franchisor is not required to conduct any marketing on behalf of Franchisee or the System.

## **9.A. BRAND DEVELOPMENT FUND**

At all times and from time to time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, Franchisor may institute, implement, maintain, delegate and administer a brand development fund (the "Brand Development Fund"). The following shall apply to the Brand Development Fund at all times throughout the Term:

- (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Sales of the Franchised Business for each monthly Accounting Period;
- (2) Franchisor will provide Franchisee with written notice of the percentage of Gross Sales that Franchisee is required to contribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
- (3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof. Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
- (4) Franchisee agrees that the purpose of the advertising, media, marketing and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks. The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Administrative Office or Operating Territory;
- (5) Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as

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Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the Brand Development Fund shall be commensurate with the amount of that time spent by such personnel on Brand Development Fund matters. Franchisor shall not use contributions to the Brand Development Fund to defray any of Franchisor's general operating expenses, except for such reasonable salaries, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration and activities of the Brand Development Fund and creation or conduct of its marketing programs including, without limitation, conducting market research, preparing advertising and marketing materials and collecting and accounting for contributions to the Brand Development Fund.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Question 63

What is the Dryer Vent Squad franchisee required to do to receive indemnification for trademark infringement?

Accepted Answer

We will protect your right to use the Licensed Marks and other related rights and protect you against claims of infringement and unfair competition related to the Licensed Marks, provided that you use the Licensed Marks in accordance with the terms of your Franchise Agreement, as designated by us in the Manuals, and otherwise, as we instruct you. We will indemnify you against direct damages for trademark infringement in a proceeding arising out of your use of the Licensed Marks, provided your use of the Licensed Marks comply with the terms of your Franchise Agreement, the Manuals, our written instructions, and that you have timely notified us of the claim, have given us sole control of the defense and settlement of the claim, and you are in compliance with your Franchise Agreement. If we defend the claim, we have no obligation to indemnify or reimburse you with respect to any fees or disbursements of any attorney that you retain.

Source: Item 13 — TRADEMARKS (FDD pages 38–39)

Question 64

Are Dryer Vent Squad franchisees required to attend the 'Annual System Conference'?

Accepted Answer

- (5) Annual Conference Attendance Fees Franchisee shall be responsible for all expenses of its personnel attending the Annual System Conference including travel, meals and lodging. Franchisee shall be required to pay to Franchisor an Annual Conference Attendance Fee. **Franchisee agrees that if Franchisee fails to attend the Annual System Conference that Franchisor shall, nevertheless, charge and Franchisee shall pay the Annual Conference Attendance Fee – even if Franchisor waives such fee for franchisees who attend the Annual System Conference.**

Source: Item 23 — RECEIPTS (FDD pages 51–207)

Dryer_Vent_Squad 2024 FDD FAQ