To whom is the initial franchise fee for a Dryer Vent Squad franchise paid?
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 is paid to the franchisor, referred to as "Us" in the document. The initial franchise fee is $35,000 and is payable in a lump sum when the Franchise Agreement is signed.
In addition to the initial franchise fee, Dryer Vent Squad franchisees can expect other initial investments payable to various parties. For example, the estimated cost for construction and leasehold improvements ranges from $0 to $2,000, payable to contractors, suppliers, and/or the landlord. Equipment costs around $1,500 payable to suppliers, and initial inventory costs $2,400 payable to suppliers.
Other initial costs include computer and software expenses ranging from $150 to $500 payable to suppliers, a service vehicle costing between $1,000 and $4,000 payable to automobile dealers, and start-up marketing expenses of $5,500 payable to Dryer Vent Squad or its suppliers. Franchisees also need to budget for insurance deposits ( $500 - $3,000 to insurers), travel for initial training ($500 - $2,000 to airlines, hotels, and restaurants), professional fees ($500 - $1,500 to attorneys, accountants, and advisors), licenses and permits ($500 - $1,500 to government entities), and additional funds for the first three months of operation ($5,000 - $10,000 to Dryer Vent Squad, employees, suppliers, landlord, and utility suppliers). The total estimated initial investment ranges from $52,050 to $68,400.