What is the Minimum Monthly Royalty Fee Requirement based on for a Dryer Vent Squad franchise?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
his Agreement.
NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties do hereby agree, as follows:
ARTICLE 1 DEFINITIONS
Supplementing the terms and definitions contained in the foregoing "Recitations", the terms listed below have the following additional meanings:
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Opening Date, or (b) the Actual Opening Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a monthly period for each and every month throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, the franchise agreement outlines a minimum monthly royalty fee. However, the specific details of how this minimum royalty fee is calculated or determined are not provided in the excerpts.
While the excerpts discuss royalty fees as sums due to the franchisor upon termination or expiration of the agreement, and mention the 'Accounting Period' being a monthly period, they do not specify the exact calculation or minimum amount required for the monthly royalty fee. The excerpts do mention that variable Contact Center Fees shall not exceed 3% of monthly Gross Sales.
A prospective Dryer Vent Squad franchisee should inquire with the franchisor about the precise method used to calculate the minimum monthly royalty fee, including any factors that influence the amount, and how it may change over time. Understanding this calculation is crucial for assessing the financial viability of the franchise.