What is the dependency for paying the Dryer Vent Squad renewal 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 the 2024 Dryer Vent Squad FDD, the renewal fee is dependent on a few key factors. The franchisee must request a renewal, and Dryer Vent Squad must approve that request. If both of those conditions are met, the franchisee must then sign the then-current franchise agreement. Only upon signing the renewal franchise agreement is the renewal fee due.
The amount of the renewal fee is 5% of Dryer Vent Squad's then-current initial franchise fee. The FDD does not specify what the initial franchise fee will be at the time of renewal, so this is subject to change.
This arrangement is fairly typical in franchising. It is important for prospective franchisees to understand the conditions under which they will be required to pay a renewal fee, as well as the amount of the fee, to properly plan for the long-term costs of operating a Dryer Vent Squad franchise.