To what extent are transfer fees collectable for a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
(ix) You have paid to Us a non-refundable Transfer Fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees to cover Our reasonable costs in effecting the transfer;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, transfer fees are collectable but are restricted to covering reasonable costs. Specifically, Dryject can only collect transfer fees to the extent that they reflect the company's reasonable estimated or actual costs in facilitating the transfer of the franchise.
In addition to the general rule regarding reasonable costs, the FDD specifies that a franchisee selling their Dryject business must pay a non-refundable transfer fee. This fee is equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees. This fee is intended to cover Dryject's reasonable costs in effecting the transfer.
Prospective franchisees should note that while the transfer fee is capped at Dryject's reasonable costs, the initial calculation of 40% of the new franchise fee could be substantial. It is important for franchisees to understand all potential costs associated with transferring their franchise and to ensure they are comfortable with these terms before entering into a franchise agreement. Franchisees should also be aware of any applicable state laws that may further regulate transfer fees or franchisee rights during a transfer.