What is the Annual Royalty Service Fee that a Dryject franchisee must pay?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee must pay an Annual Royalty Service Fee. This fee is calculated as the greater of either eight percent (8%) of the annual Gross Revenues generated by the franchise or the annual total of the monthly Minimum Service Fee amounts. The calculation is based on a calendar year.
In the initial partial calendar year, beginning in month four, the minimum monthly payment is $450.00. For the second full calendar year, it is $900.00 per month, totaling $10,800.00 annually. The third full calendar year requires $1,300.00 per month, amounting to $15,600.00 per year. From the fourth full calendar year onward, the minimum monthly payment is $1,450.00, which equals $17,400.00 annually.
Dryject also specifies an 'Annual Royalty Service Fee Gross Revenue Equivalent,' which is the annual Minimum Service Fee divided by 0.08 (8% royalty). For instance, in the second year, the Gross Revenue Equivalent is $135,000.00 ($10,800.00 divided by 0.08). If a franchisee's cumulative monthly Gross Revenues exceed this equivalent, Dryject will collect the monthly Minimum Service Fee plus an additional eight percent (8%) on the amount exceeding the Gross Revenue Equivalent.