What is the Dryer Vent Squad transfer fee if the transferee is an existing franchisee?
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 Franchise Disclosure Document, the transfer fee is dependent on who the franchise is being transferred to. If the transfer is approved by Dryer Vent Squad and the transferee is an existing franchisee, the transfer fee is $5,000. This fee is payable upon approval of the transfer request and the signing of the then-current franchise agreement.
This means that if a franchisee decides to sell their Dryer Vent Squad franchise to someone who already owns a Dryer Vent Squad franchise, they will pay a lower transfer fee than if they sold to a new franchisee. The fee covers Dryer Vent Squad's administrative costs associated with the transfer, such as reviewing the transferee's qualifications and updating the franchise agreement.
It's important to note that the transfer is not guaranteed. Dryer Vent Squad must approve the transfer request. The fee is due only if the transfer is approved and a new franchise agreement is signed. This is a fairly standard practice in franchising, as franchisors typically want to ensure that any new franchisee meets their standards and is a good fit for the system.