Is the Dryer Vent Squad Royalty Fee refundable?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
inst Franchisor, specifying the basis for such proposed action, and Franchisee shall grant Franchisor 30 days from receipt of said notice to cure the alleged act upon which such legal action is to be based (hereinafter, the "30 Day Cure Notice"). Franchisee agrees that the 30 Day Cure Notice is a strict condition precedent to Franchisee commencing, or otherwise instituting, legal action or proceeding against Franchisor for any reason whatsoever.
ARTICLE 17 OBLIGATIONS UPON TERMINATION OR EXPIRATION
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Dryer Vent Squad Business that was the subject of this Agreement and cease to operate such Dryer Vent Squad Business under the System;
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the franchise agreement stipulates that upon termination or expiration of the agreement, the franchisee must immediately pay all outstanding sums and fees, including Royalty Fees, to Dryer Vent Squad.
Furthermore, the agreement explicitly states that franchisees are not entitled to withhold payments due to Dryer Vent Squad under any circumstances, even in the event of alleged non-performance by the franchisor. This suggests that franchisees cannot deduct or withhold royalty payments based on disputes or claims of non-performance.
For franchisees operating under North Dakota law, the FDD states that refund and cancellation provisions will not be applicable. If Dryer Vent Squad elects to cancel the Franchise Agreement, they will be entitled to a reasonable fee for evaluation and preparatory work performed and expenses incurred. The FDD does not explicitly state that the Royalty Fee is refundable under normal circumstances.