When does Dryject consider the fee for the Base Equipment Package to be fully earned?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ng on a month-to-month basis under the terms and conditions of Our then-current form of franchise agreement. In such circumstances, and notwithstanding the foregoing, We may, on ten (10) days written notice, terminate Your Franchise Agreement.
7. FRANCHISEE'S PAYMENTS
(a) You shall pay to Us an Initial Franchise Fee of Twenty-Nine Thousand Five Hundred Dollars ($29,500.00), payable by a certified or cashier's check. Such Initial Franchise Fee shall be due and payable in full upon the execution of this Agreement. You understand and acknowledge that the Initial Franchise Fee is non-refundable and is fully earned by Us at the time the parties execute this Agreement.
- (b) You agree to purchase from Us all proprietary equipment required to operate the Franchis
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the fee for the Base Equipment Package, which costs $166,500, is considered fully earned by Dryject upon the execution of the Franchise Agreement. This means that once the agreement is signed, Dryject has earned the fee, regardless of whether the franchisee has commenced the Initial Training Program, received the equipment, or 90 days have passed since the effective date.
This has significant implications for prospective Dryject franchisees. The $166,500 payment for the Base Equipment Package is due upon the earliest of three conditions: commencement of the Initial Training Program, shipment of the equipment, or 90 days after the agreement's effective date. However, Dryject considers the fee fully earned immediately upon signing the agreement.
Therefore, if a franchisee terminates the agreement shortly after signing but before any of the payment triggers occur (training, shipment, or 90-day mark), the franchisee will still owe Dryject the full $166,500. This is because the fee is deemed earned by Dryject at the time of execution. The FDD also states that the fee for the Base Equipment Package is non-refundable, further emphasizing the financial commitment a franchisee makes upon signing the agreement.