What is the Dryer Vent Squad payment non-compliance fee per occurrence?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Conference Attendance (Note 10) | Our then current conference fee, but not greater than $1,500. Currently not assessed. | When invoiced | Applies to conference fee for an annual System conference. |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day | When invoiced and prior to training | Our initial pre-opening training is provided at no additional cost for you or your Managing Owner and one designated manager at no additional charge. This fee applies to additional individuals that we authorize to attend training. You are responsible for all fees, wages, and expenses associated with attendance. |
| Supplemental Training | Our then current daily fee per trainer, plus our expenses. Current rate is $250 per day | On demand | If you request or we require additional training, you must pay our then current trainer fee plus, if applicable, our expenses related to travel and accommodations. |
| Reporting Non- Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit royalty and other reports required under the Franchise Agreement. |
| Operations Non- Compliance | $450 to $1,000 per occurrence plus costs | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non- Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to comply with payment obligations under Franchise Agreement. |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law | On demand | Payable if your bank account possesses insufficient funds or fails to process a payment required under Franchise Agreement. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
| Audit | Cost of audit plus expensed incurred | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated period. Includes expenses incurred by us |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, a franchisee will be charged $150 per occurrence for payment non-compliance. This fee is due within 14 days of the invoice date. Payment non-compliance refers to failing to meet the payment obligations outlined in the Franchise Agreement.
This means that if a Dryer Vent Squad franchisee fails to make a payment on time or in the manner specified in the Franchise Agreement, they will incur this $150 fee for each instance of non-compliance. This is in addition to any other penalties or interest that may apply to the overdue amount. The fee is intended to cover the administrative costs and potential disruptions caused by the franchisee's failure to adhere to the payment terms.
Franchisees should ensure they understand all payment obligations and deadlines outlined in the Franchise Agreement to avoid incurring these fees. Setting up automated payment systems or reminders can help prevent unintentional non-compliance. It is also important to maintain open communication with Dryer Vent Squad regarding any potential payment issues to explore possible solutions and avoid penalties.
Payment non-compliance fees are a common practice in franchising, designed to encourage timely payments and adherence to the franchise agreement. The specific amount and terms can vary among different franchise systems, so it's important for prospective franchisees to carefully review the FDD and Franchise Agreement to understand their obligations and potential penalties.