What is the Annual Royalty Service Fee based on for a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
d Business. As of the Effective Date, the minimum proprietary equipment requirement for the establishment of a Franchised Business consists of three (3) model 4820 DryJect machines (the "Base Equipment Package"). The purchase price for the Base Equipment Package is One Hundred Sixty Six Thousand Five Hundred Dollars ($166,500.00) and is due and payable to Us upon the earlier of: (1) commencement of the Initial Training Program described in Section 13; (2) shipment of the Base Equipment Package to You; or (3) ninety (90) days after the Effective Date. The fee for the Base Equipment Package is fully earned by Us upon the execution of this Agreement and is non-refundable.
- (c) You agree to pay to Us an Annual Royalty Service Fee of eight percent (8%) of the annual Gross Revenues generated by You in the Franchised Business or the annual total of the monthly Minimum Service Fee amounts, whichever is greater. The Annual Royalty Service Fee will be calculated using a calendar year.
The minimum monthly payment toward this Annual Royalty Service Fee ("Minimum Service Fee") will be based on Your total number of calendar years as a franchisee (initial Term and renewals): the first (1st) partial calendar year, beginning month four (4): Four Hundred Fifty Dollars ($450.00) per month; the second (2nd) full calendar year: Nine Hundred Dollars ($900.00) per month or Ten Thousand Eight Hundred Dollars ($10,800.00) per year; the third (3rd) full calendar year: One Thousand Three Hundred Dollars ($1,300.00) per month or Fifteen Thousand Six Hundred Dollars ($15,600.00) per year; the fourth (4th) full calendar year and forward: One Thousand Four Hundred Fifty Dollars ($1,450.00) per month or Seventeen Thousand Four Hundred Dollars ($17,400.00) per year. Annual Royalty Service Fee Gross Revenue Equivalent is: annual Minimum Service Fee divided by .08 (8% Royalty). For example, the Annual Royalty Service Fee Gross Revenue Equivalent for the second (2nd) year is One Hundred Thirty Five Thousand Dollars ($135,000.00) ($10,800.00 divided by .08).
You must report to Us the Gross Revenues of the Franchised Business operations on a monthly basis, the month immediately after the service was performed. Paym
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Annual Royalty Service Fee is based on the greater of two options: eight percent of the annual Gross Revenues generated by the franchisee or the annual total of the monthly Minimum Service Fee amounts. This fee is calculated on a calendar year basis.
Dryject franchisees must report their Gross Revenues monthly and make payments towards the Annual Royalty Service Fee by the 15th day of the following month. If a franchisee's cumulative monthly Gross Revenues exceed the Annual Royalty Service Fee Gross Revenue Equivalent during the calendar year, Dryject will collect the monthly Minimum Service Fee plus an additional eight percent on the amount of the monthly Gross Revenues exceeding the Annual Royalty Service Fee Gross Revenue Equivalent.
The minimum monthly payment towards the Annual Royalty Service Fee varies based on the franchisee's tenure. For the first partial calendar year (beginning month four), the Minimum Service Fee is $450 per month. It increases to $900 per month (or $10,800 per year) in the second full calendar year, $1,300 per month (or $15,600 per year) in the third full calendar year, and $1,450 per month (or $17,400 per year) from the fourth full calendar year onward. The Annual Royalty Service Fee Gross Revenue Equivalent is calculated by dividing the annual Minimum Service Fee by 0.08 (8% royalty). For example, the Annual Royalty Service Fee Gross Revenue Equivalent for the second year is $135,000 ($10,800 divided by 0.08).