What is the Dryer Vent Squad franchisee's obligation regarding reimbursement to the franchisor?
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, franchisees have an obligation to reimburse the franchisor under specific circumstances. If Dryer Vent Squad pays any amount that a franchisee owes or is required to pay to a third party, the franchisee must reimburse Dryer Vent Squad for the full amount of those costs and expenses.
In addition to covering the original costs, the franchisee is also required to pay an additional fee to Dryer Vent Squad. This fee is calculated as 10% of the total costs and expenses incurred by Dryer Vent Squad in making the payment on behalf of the franchisee.
The reimbursement, including the additional 10% fee, is due within 14 days of the date that Dryer Vent Squad issues an invoice to the franchisee. This policy ensures that Dryer Vent Squad is promptly compensated for any payments they make on behalf of their franchisees and also includes a service fee for having to do so.