How is the Dryer Vent Squad reimbursement fee calculated?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| including audit, legal, travel and reasonable accommodations. | |||
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the franchise agreement or a termination of the franchise agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred | 14 days of invoice | You shall reimburse us for costs and expenses incurred if we pay any amount that you owe or are required to pay to a third party, plus an additional fee of 10% of the costs and expenses incurred by us. |
| Transfer | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers | On demand | Payable if we approve your transfer request and upon signing our then current franchise agreement. |
| Renewal | 5% of our then current initial franchise fee | On signing renewal franchise agreement | Payable if we approve your renewal request and upon signing our then current franchise agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, the reimbursement fee is calculated as the costs and expenses incurred by Dryer Vent Squad, plus an additional 10% of those costs and expenses. This fee is charged if Dryer Vent Squad pays any amount that a franchisee owes or is required to pay to a third party.
For a prospective franchisee, this means that if Dryer Vent Squad steps in to cover a franchisee's debt or obligation to a third party, the franchisee will be responsible for repaying the original amount plus a 10% surcharge. This could occur in various situations, such as if a franchisee fails to pay a supplier on time and Dryer Vent Squad settles the debt to maintain the relationship.
The reimbursement is due within 14 days of the invoice date. It's important for franchisees to manage their finances carefully to avoid incurring these reimbursement fees, as they can add a significant cost to their operations. Franchisees should maintain open communication with Dryer Vent Squad to understand the circumstances that could lead to such payments and to ensure they are prepared to cover these costs if they arise.