What conditions must be met for Dryer Vent Squad to charge a transfer fee?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, a transfer fee is payable if Dryer Vent Squad approves a franchisee's transfer request and upon the signing of their then-current franchise agreement. The amount of the transfer fee depends on who the franchise is being transferred to.
Specifically, if the transferee is an existing Dryer Vent Squad franchisee, the transfer fee is $5,000. However, if the transfer is to any other party, the transfer fee increases to $12,500. This fee is due on demand once Dryer Vent Squad approves the transfer and the new franchise agreement is signed.
This means that a Dryer Vent Squad franchisee looking to sell their franchise must first obtain approval from Dryer Vent Squad. If approved, the franchisee will then be responsible for paying the transfer fee, which varies depending on whether the buyer is an existing franchisee or a new one. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over who joins their system and ensure they are qualified to uphold the brand standards.