What is the Annual Royalty Service Fee Gross Revenue Equivalent defined as for a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Once Your cumulative monthly Gross Revenues during the course of the calendar year exceed Your Annual Royalty Service Fee Gross Revenue Equivalent, We will collect the monthly Minimum Service Fee plus an additional eight percent (8%) on the amount of the monthly Gross Revenues that exceed the Annual Royalty Service Fee Gross Revenue Equivalent.
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 Gross Revenue Equivalent is calculated by dividing the annual Minimum Service Fee by 0.08 (8% Royalty). This calculation determines the gross revenue threshold at which Dryject will begin collecting an additional royalty fee on monthly gross revenues exceeding this equivalent.
For instance, using the provided example, the Annual Royalty Service Fee Gross Revenue Equivalent for the second year of operation is $135,000. This is derived from dividing the annual Minimum Service Fee of $10,800 by 0.08. This means that if a franchisee's cumulative monthly Gross Revenues exceed $135,000 during the second calendar year, Dryject will collect the monthly Minimum Service Fee plus an additional 8% on the amount of the monthly Gross Revenues that exceed the $135,000 equivalent.
This system ensures that Dryject franchisees pay at least the Minimum Service Fee amount, but also share a percentage of their revenues above a certain threshold with the franchisor. This structure is designed to balance the franchisee's initial investment with ongoing royalties that reflect the actual performance of the business. Franchisees should carefully project their potential revenues to understand how this calculation will affect their overall profitability.