What is the dependency for paying the Dryer Vent Squad 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 the 2024 Dryer Vent Squad Franchise Disclosure Document, the transfer fee is payable if Dryer Vent Squad approves a transfer request and upon signing their then-current franchise agreement. The amount of the transfer fee depends on who the franchise is being transferred to.
If the transfer is to an existing Dryer Vent Squad franchisee, the transfer fee is $5,000. However, if the transfer is to someone who is not an existing franchisee, the transfer fee is $12,500.
This means that a prospective Dryer Vent Squad franchisee needs to be aware of these costs if they plan to sell their franchise in the future. The transfer is contingent on Dryer Vent Squad's approval, and the franchisee will need to sign the then-current franchise agreement, which may have different terms than their original agreement.