What is the Operations Non-Compliance Fee for a Dryer Vent Squad Franchisee for all other Operations Violations?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
le for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
7.J. REMEDIES FOR NON-COMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an "Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance / event related to an Operations Violation involving the sale of services and/or products that are not Approved Services and Products; (b) $1,000 for each and every instance / event related to an Operations Violation involving the failure to exclusively use System Supplies, and/or Franchisor designated suppliers; and (c) $450 for all other Operations Violation. Additionally, in each of the foregoing instances, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor all costs and expenses incurred by Franchisor in connection with any inspections, audits, and/or re-inspections directed and/or undertaken by Franchisor for the purpose, as determined by Franchisor in Franchisor's Reasonable Business Judgment, of determining whether or not Franchisee's Operations Violation has been cured in accordance with
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, franchisees may incur an Operations Non-Compliance Fee for violations of operational standards. Specifically, for any Operations Violation not involving the sale of non-approved services/products or the failure to exclusively use System Supplies, the franchisee will be charged $450. This fee is in addition to any other rights afforded to Dryer Vent Squad under the agreement.
This means that if a Dryer Vent Squad franchisee violates any operational requirement outlined in Article 7 of the franchise agreement, and that violation does not involve selling unapproved services/products or failing to use System Supplies, they will be assessed a $450 fee. This could include violations of brand standards, failure to maintain service vehicles, or other operational infractions detailed in the Operations Manual.
Furthermore, the franchisee is responsible for covering all costs and expenses Dryer Vent Squad incurs for inspections, audits, or re-inspections to determine if the Operations Violation has been corrected according to Dryer Vent Squad's standards. It's important to note that the assessment of this fee does not represent Dryer Vent Squad's approval or acceptance of the violation, and all rights and remedies available to Dryer Vent Squad are cumulative.