Can Dryer Vent Squad charge per communication fees for Contact Center Services?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Franchisor, in Franchisor's Reasonable Business Judgment and sole discretion, may implement and require that Franchisee, at Franchisee's cost and expense, participate in utilizing the Contact Center and Contact Center Services designated by Franchisor and as may be modified by Franchisor from time to time. Franchisee agrees that a core and critical component to all Dryer Vent Squad Businesses and Franchisee's Dryer Vent Squad Business relates to and includes communications with customers and prospective customers, the scheduling and rescheduling of estimate appointments, the scheduling and rescheduling of service visits, responding to customer complaints and other customer communications. Franchisee agrees that Franchisee shall exclusively adopt and utilize only those Contact Centers designated and approved by Franchisor and that Franchisee shall exclusively adopt and utilize only those Contact Center Services designated by Franchisor of which Franchisor may be the sole and exclusive supplier. Franchisee shall pay for all costs and expenses charged to Franchisee for Contact Center Services. Fees for Contact Center Services shall, in Franchisor's Reasonable Business Judgment, be exclusively determined by Franchisor from time to time and may include fixed general overhead fees and variable fees related to contacts involving or potentially involving the Franchised Business including, but not limited to, an initial prospect fee related to a prospect that contacts a Contact Center, estimate scheduling and rescheduling, service visit scheduling and rescheduling, and escalation fees responding to customer complaints and supplemental inquiries. The variable Contact Center Fees shall not exceed 3% of monthly Gross Sales, provided that Franchisor reserves the right to charge per communication fees that will be charged each and every time a communication occurs so long as such fees do not exceed 3% of Franchisee's Gross Sales in any monthly Accounting Period. Franchisee's participation and use of the Contact Center is mandatory and Franchisee's payment of Contact Center Fees is mandatory.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, Dryer Vent Squad may charge franchisees per communication fees for Contact Center Services. The fees for these services are determined by Dryer Vent Squad and can include both fixed overhead fees and variable fees related to contacts. These contacts may involve potential or current customers and can include scheduling appointments, responding to complaints, and handling inquiries.
The document specifies that Dryer Vent Squad reserves the right to charge per communication fees each time a communication occurs. However, these fees, along with all other variable Contact Center Fees, cannot exceed 3% of the franchisee's monthly Gross Sales. This 3% cap provides a limit to the financial burden placed on franchisees for these services.
Franchisees are required to participate in and use the Contact Center Services designated by Dryer Vent Squad. Payment of Contact Center Fees is also mandatory. This means that franchisees must budget for these ongoing costs as part of their operational expenses. The Contact Center services are considered a core component of the Dryer Vent Squad business, emphasizing the importance of standardized communication and customer service protocols across the franchise system.