When is the initial franchise fee due for a Dryer Vent Squad franchise?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee | $35,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and Leasehold Improvements (Note 2) | $0 – $2,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Equipment | $1,500 | As arranged | As incurred | Suppliers |
| (Note 3) | ||||
| Initial Inventory | $2,400 | As arranged | As incurred | Suppliers |
| (Note 4) | ||||
| Computer, Software | $150 – $500 | As arranged | As incurred | Suppliers |
| and Point of Sales | ||||
| System (Note 5) | ||||
| Service Vehicle | $1,000 – $4,000 | As arranged | As incurred | Automobile dealers |
| (Note 6) | ||||
| Start-Up Marketing – | $5,500 | As arranged | As incurred | Us, Suppliers |
| Three Months (Note 7) | ||||
| Insurance Deposits – | $500 – $3,000 | As arranged | As incurred | Insurers |
| Three Months (Note 8) | ||||
| Travel for Initial | $500 – $2,000 | As arranged | As incurred | Airlines, hotels, restaurants |
| Training (Note 9) | ||||
| Professional Fees (Note | $500 – $1,500 | As arranged | As incurred | Attorneys, accountants, |
| 10) | advisors | |||
| Licenses and Permits | $500 – $1,500 | As arranged | As incurred | Government |
| (Note 11) | ||||
| Additional Funds – Three Months (Note 12) | $5,000 – $10,000 | As arranged | As incurred | Us, employees, suppliers, landlord, utility suppliers |
| Total Estimate (Note 13) | $52,050 – $68,400 |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the initial franchise fee of $35,000 is due when the Franchise Agreement is signed. This is a lump sum payment made directly to Dryer Vent Squad.
In addition to the initial franchise fee, the FDD outlines other initial costs that are due as incurred. These include construction and leasehold improvements, equipment, initial inventory, computer and software, a service vehicle, start-up marketing, insurance deposits, travel for initial training, professional fees, licenses and permits, and additional funds for the first three months of operation. These costs range from $52,050 to $68,400.
Prospective franchisees should be aware of the timing of these payments and ensure they have sufficient capital available when signing the Franchise Agreement and as they prepare to launch their Dryer Vent Squad business. Understanding the 'when due' conditions for each fee is crucial for managing startup costs effectively.