factual

Are Dryer Vent Squad franchisees required to pay Contact Center Fees?

Dryer_Vent_Squad Franchise · 2024 FDD

Answer from 2024 FDD Document

cts in connection with the Corporate Account, that Franchisor may elect to not submit a Service Order to Franchisee and either Franchisor, Franchisor's affiliates, and/or other System franchisee's may be selected to provide Approved Services and Products on behalf of a Corporate Account located within Franchisee's Operating Territory.

3.L. CONTACT CENTER AND CONTACT CENTER SERVICES

Franchisee agrees that Franchisor, in Franchisor's Reasonable Business Judgment and sole discretion, may implement and require that Franchisee, at Franchisee's cost and expense, participate in utilizing the Contact Center and Contact Center Services designated by Franchisor and as may be modified by Franchisor from time to time. Franchisee agrees that a core and critical component to all Dryer Vent Squad Businesses and Franchisee's Dryer Vent Squad Business relates to and includes communications with customers and prospective customers, the scheduling and rescheduling of estimate appointments, the scheduling and rescheduling of service visits, responding to customer complaints and other customer communications. Franchisee agrees that Franchisee shall exclusively adopt and utilize only those Contact Centers designated and approved by Franchisor and that Franchisee shall exclusively adopt and utilize only those Contact Center Services designated by Franchisor of which Franchisor may be the sole and exclusive supplier. Franchisee shall pay for all costs and expenses charged to Franchisee for Contact Center Services. Fees for Contact Center Services shall, in Franchisor's Reasonable Business Judgment, be exclusively determined by Franchisor from time to time and may include fixed general overhead fees and variable fees related to contacts involving or potentially involving the Franchised Business including, but not limited to, an initial prospect fee related to a prospect that contacts a Contact Center, estimate scheduling and rescheduling, service visit scheduling and rescheduling, and escalation fees responding to customer complaints and supplemental inquiries. The variable Contact Center Fees shall not exceed 3% of monthly Gross Sales, provided that Franchisor reserves the right to charge per communication fees that will be charged each and every time a communication occurs so long as such fees do not exceed 3% of Franchisee's Gross Sales in any monthly Accounting Period. Franchisee's participation and use of the Contact Center is mandatory and Franchisee's payment of Contact Center Fees is mandatory.

ARTICLE 4 TRAINING AND OPERATING ASSISTANCE

4.A. INITIAL TRAINING, SUPPLEMENTAL TRAINING AND SYSTEM-WIDE TRAINING

(1) Within 28 days of the earlier of the Scheduled Opening Date or the Actual Opening Date, Franchisee's Managing Owner and one manager must complete, to Franchisor's satisfaction, Franchisor's initial training program (the "Training Program"). Franchisor will provide Franchisee, comprised of Franchisee's Managing Owner, and one designated manager, with Franchisor's Training Program. If Franchisee would like more than two individuals to attend the Training Program, subject to Franchisor's approval, Franchisee shall pay to Franchisor an additional fee of $500 per additional person attending the Training Program (the "Additional Initial Training Fee").

Source: Item 23 — RECEIPTS (FDD pages 51–207)

What This Means (2024 FDD)

According to the 2024 Dryer Vent Squad Franchise Disclosure Document, franchisees are required to pay Contact Center Fees. Dryer Vent Squad may implement and require franchisees to participate in utilizing a designated Contact Center and Contact Center Services at the franchisee's expense. These services are deemed a critical component of the Dryer Vent Squad business, relating to communications with customers, scheduling, and handling customer complaints. Franchisees must exclusively use Contact Centers and Services designated and approved by Dryer Vent Squad.

The fees cover all costs charged for Contact Center Services, determined by Dryer Vent Squad, and may include fixed overhead and variable fees related to contacts. These variable fees can include initial prospect fees, estimate scheduling, service visit scheduling, and complaint escalation fees. The variable Contact Center Fees cannot exceed 3% of monthly Gross Sales. However, Dryer Vent Squad can charge per communication fees, provided these do not exceed 3% of the franchisee's Gross Sales in any monthly accounting period.

Participation in and payment of Contact Center Fees are mandatory for Dryer Vent Squad franchisees. Franchisees must pay a continuing monthly non-refundable contact center fee, with the specific rate determined by Dryer Vent Squad, but it will not exceed 3% of Gross Sales during each monthly accounting period. These fees are calculated monthly and are payable on the first Due Date of each month.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.