What is the deadline for paying Dryer Vent Squad reimbursement fees?
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, if Dryer Vent Squad pays an amount that a franchisee owes to a third party, the franchisee must reimburse Dryer Vent Squad for the costs and expenses incurred, plus an additional fee of 10% of those costs and expenses. The reimbursement is due within 14 days of the invoice date.
This means that if Dryer Vent Squad covers a franchisee's debt to a supplier or other entity, the franchisee is responsible for repaying that amount, along with a 10% surcharge, within two weeks of receiving the invoice. This policy ensures that Dryer Vent Squad is compensated for any financial assistance it provides to franchisees in meeting their obligations.
It is important for prospective franchisees to understand this reimbursement policy, as it can impact their financial obligations to Dryer Vent Squad. Franchisees should ensure they have sufficient funds to cover any potential reimbursements and factor this into their financial planning. Failure to pay the reimbursement fee within the specified timeframe could result in additional penalties or legal action from Dryer Vent Squad.