Is there a penalty for early prepayment of a Dryer Vent Squad financing loan?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Finance Type | e | Operating Territory Type: Single Territory | Operating Territory Type: Double Territory |
|---|---|---|---|
| Amount Financed | Up to $14,000 of Initial Franchise Fee | Up to $28,000 of Initial Franchise Fee | |
| Down Payment | Minimum of $21,000 | Minimum of $42,000 | |
| Term | Up to two (2) years | Up to two (2) years | |
| Finance Charges | Ten percent (10%) APR | Ten percent (10%) APR | |
| Payment Amount | Depends on amount financed with repayment self-amortized over two (2) year repayment period with monthly installments of principal and interest paid monthly. | ||
| Payment Terms | Payable monthly over two (2) year repayment period with monthly installments of principal and interest paid monthly. No early pre-payment penalty. |
Source: Item 10 — FINANCING (FDD pages 29–30)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, there is no penalty for early prepayment of a loan used to finance the initial franchise fee. This applies to both single and double territory franchise options.
The FDD outlines the financing terms available if Dryer Vent Squad chooses to finance the initial franchise fee. For a single territory, Dryer Vent Squad may finance up to $14,000 of the initial franchise fee, while for a double territory, they may finance up to $28,000. The term for both is up to two years with a 10% APR.
The repayment is self-amortized over the two-year period, with monthly installments of principal and interest. The FDD specifies that there is 'No early pre-payment penalty,' which means franchisees can pay off the loan faster without incurring extra charges. This is a beneficial term for franchisees who may want to reduce their debt obligations sooner than scheduled.