What is the maximum term length for Dryer Vent Squad financing?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Finance Type | e | Operating Territory Type: Single Territory | Operating Territory Type: Double Territory |
|---|---|---|---|
| Amount Financed | Up to $14,000 of Initial Franchise Fee | Up to $28,000 of Initial Franchise Fee | |
| Down Payment | Minimum of $21,000 | Minimum of $42,000 | |
| Term | Up to two (2) years | Up to two (2) years | |
| Finance Charges | Ten percent (10%) APR | Ten percent (10%) APR | |
| Payment Amount | Depends on amount financed with repayment self-amortized over two (2) year repayment period with monthly installments of principal and interest paid monthly. | ||
| Payment Terms | Payable monthly over two (2) year repayment period with monthly installments of principal and interest paid monthly. No early pre-payment penalty. | ||
| Security Required | Personal guaranty by you and if you are a Corporate Entity then personal guaranty by each individual owner. Additional security in the form of a security agreement related to the assets of the Franchised Business and the filing of a UCC-1. | ||
| Liability Upon Default | Personal liability for the amount financed, plus interest, collection costs and legal fees. Additionally, default of Franchise Agreement and loss of franchise rights in the Franchised Business and other legal and equitable remedies available to us. | ||
| Loss of Legal Rights on Default | Cross-default of Franchise Agreement. Waiver of notice of default and loss of defenses | ||
| Referral Fee | Not applicable. |
Source: Item 10 — FINANCING (FDD pages 29–30)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, if Dryer Vent Squad offers direct financing for the initial franchise fee, the maximum term length is up to two years. This applies whether the franchisee is purchasing a single territory or a double territory.
For both single and double territories, the repayment is self-amortized over the two-year period, with monthly installments of principal and interest. There is no penalty for early prepayment. This means franchisees have the flexibility to pay off the loan faster without incurring extra charges.
It is important to note that Dryer Vent Squad is not obligated to offer financing, and the decision to provide financing is based on internal factors determined by them. The franchisee will be required to provide a personal guarantee, and if the franchisee is a corporation, each individual owner must also provide a personal guarantee. Additionally, Dryer Vent Squad requires security in the form of a security agreement related to the assets of the franchised business and the filing of a UCC-1.
Failure to repay the loan can result in the termination of the franchise agreement and the loss of franchise rights. Franchisees should carefully consider these terms and conditions before entering into a financing agreement with Dryer Vent Squad.