What is the penalty fee for Dryer Vent Squad franchisees for reporting non-compliance?
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, franchisees will be assessed a fee of $150 per occurrence for reporting non-compliance. This fee is specifically for failing to submit royalty and other reports in a timely manner as required by the Franchise Agreement.
This penalty is in addition to other fees that Dryer Vent Squad franchisees may incur for operational or payment non-compliance. Operational non-compliance can result in fees ranging from $450 to $1,000, plus any inspection and re-inspection costs. Payment non-compliance also carries a penalty of $150 per occurrence.
It is important for prospective Dryer Vent Squad franchisees to understand these potential penalties and ensure they have systems in place to meet all reporting and payment deadlines to avoid these additional costs. Consistently failing to meet these obligations could significantly impact a franchisee's profitability.