What is the Annual Royalty Service Fee Gross Revenue Equivalent for Dryject franchisees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
0 per month or $17,400/year. Annual Royalty Service Fee Gross Revenue Equivalent is: Annual Minimum Royalty Service Fee divided by .08 (8% Royalty). For example, the Annual Royalty Service Fee Gross Revenue Equivalent for the second year is $135,000 ($10,800 divided by .08).
Franchise Owner must report to Company the Gross Revenues of the Franchised Business operations on a monthly basis. Payments toward the Annual Royalty Service Fee must be made on a monthly basis and must be paid on or before the 15th day of the month for the preceding month.
Once Franchise Owner's cumulative monthly Gross Revenues during the course of the calendar year exceed Franchise Owner's Annual Royalty Service Fee Gross Revenue Equivalent, Company will collect the minimum monthly Royalty Service Fee plus an additional 8% on the amount of the monthly Gross Revenues that exceeds the Annual Royalty Service Fee Gross Revenue Equivalent.
For example, the Annual Minimum Royalty Service Fee for the second full calendar year will be $900.00 multiplied by 12 (months) for a total of $10,800.00. Franchise Owner will pay Company $900.00 a month until Franchise Owner's Gross Revenues are more than the Annual Royalty Service Fee Gross Revenue Equivalent of $135,000.00 ($10,800 divided by .08). If Franchise Owner's monthly Gross Revenues for September are $50,000.00 and the monthly Gross Revenues for January through September are $150,000.00, then Franchise Owner's payment for September will be the minimum monthly payment of $900.00 plus $1,200.00 (8% of $15,000.00, the amount in excess over the Annual Royalty Service Fee Gross Revenue Equivalent).
Source: Item 6 — OTHER FEES (FDD pages 14–18)
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 Royalty Service Fee by 0.08 (8% Royalty). For example, the FDD states that the Annual Royalty Service Fee Gross Revenue Equivalent for the second year is $135,000, which is derived from dividing the $10,800 annual minimum royalty fee by 0.08.
In practical terms, this means that a Dryject franchisee will pay a minimum monthly royalty fee until their cumulative gross revenues for the calendar year exceed a certain threshold. For the second full calendar year, this threshold is $135,000. Once a franchisee's gross revenues exceed this amount, they will pay the minimum monthly royalty fee plus an additional 8% on the amount of the monthly gross revenues that exceeds the Annual Royalty Service Fee Gross Revenue Equivalent.
For example, if a Dryject franchisee's monthly gross revenues for September are $50,000 and the cumulative gross revenues for January through September are $150,000, the franchisee's payment for September will be the minimum monthly payment of $900 plus $1,200 (8% of $15,000, the amount in excess over the Annual Royalty Service Fee Gross Revenue Equivalent). If the franchisee's monthly gross revenues for October total another $50,000, then the payment for October will be the minimum monthly payment of $900 plus $4,000 (8% of $50,000, that month's amount in excess over the Annual Royalty Service Fee Gross Revenue Equivalent).
This calculation ensures that Dryject receives at least the minimum royalty fee while also sharing in the franchisee's success as their revenues grow. Franchisees need to carefully track their gross revenues throughout the year to understand when they will exceed the Annual Royalty Service Fee Gross Revenue Equivalent and begin paying the additional 8% royalty on the excess amount.