When is the Dryject Failure to Maintain Insurance fee due?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Customer Complaints | Actual cost to satisfy your customers | As incurred | If we step in to resolve a complaint from one of your customers, you must pay us for our time and any compensation given to customer. |
| Failure to Maintain | Cost of insurance and, | As required and as | Payable upon your |
| Insurance | if not obtained by you, our procurement expense. | incurred | failure to comply with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Failure to Maintain Insurance fee is due "as required and as incurred" and is payable upon your failure to comply with the Franchise Agreement. This means that if Dryject has to step in to procure insurance on your behalf because you failed to maintain the required coverage, you will be charged for the cost of the insurance and Dryject's expenses for obtaining it.
This fee is triggered by a specific event: your failure to maintain the insurance coverage required by the Franchise Agreement. The amount will depend on the cost of the insurance Dryject obtains and their procurement expenses. It's important for a prospective franchisee to understand the insurance requirements outlined in the Franchise Agreement to avoid incurring this fee.
Furthermore, Note 7 in Item 6 states that if Dryject audits your business and finds that you failed to properly maintain the insurance requirements outlined in the Agreement, you will be required to pay a Non-Compliance Fee and the cost of the audit. The Non-Compliance Fee is $100 per incident plus 1½% interest per month, or maximum allowed by law. Therefore, maintaining proper insurance is crucial not only to avoid the direct costs of Dryject securing insurance on your behalf but also to prevent additional penalties and fees.