What are all the fees Dryject franchisees must pay, considering both the initial fees in Item 5 and the other fees in Item 6?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
Item 5 INITIAL FEES
Upon our signing the Franchise Agreement, you must pay to us an Initial Franchise Fee of $29,500. The Initial Franchise Fee is fully earned and non-refundable in consideration of administrative and other expenses incurred by us in entering into the Agreement and for our lost or deferred opportunity to enter into the Agreement with others. There is no financing available from us for the payment of the Initial Franchise Fee. The Initial Franchise Fee is uniform to all franchise owners.
You will purchase from us or our affiliate proprietary equipment consisting of, at a minimum, three model 4820 DryJect® machines and certain spare parts for these machines (the "Base Equipment Package"). The purchase price for the Base Equipment Package is $166,500 and is nonrefundable and uniform to all franchise owners.
You pay us or our affiliate no other fees or payments for services or goods before your business opens.
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[Item 6: OTHER FEES]
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Service Fee | The greater of: 8% of | On the 15th day of the | Minimum is only |
| Gross Revenues or, for | following month by | waived for the first | |
| the first partial | automatic debit/EFT or | three months after | |
| calendar year: $450 per month after 3 months; the second full calendar year: $900 per month; the third full calendar year: $1,300 per month; the fourth full calendar year and forward: $1,450 per month | otherwise | signing the Franchise Agreement. See Note 1 below | |
| National Marketing | The greater of: 2% of | By the 15th day of the | See Note 2 below |
| Fund | Gross Revenue or, for months 1-3: $0 per month; months 4-12: $100 per month; months 13-24: $200 per month; months 25- 36: $300 per month; months 37 and forward: $500 per month. | following month by automatic debit/EFT or otherwise | |
| Non-Compliance Fee | $100 per incident plus 1½% interest per month, or maximum allowed by law | When payment is overdue | See Note 3 below |
| Payment by Credit | Amount of the credit | Upon receipt of | All payments made to |
| Card | card processing fee | invoice | us paid by credit card will incur fee. You must reimburse us our cost related to your payments by credit cards. |
| Additional Training, | Reasonable per diem | Before Additional | See Note 4 below |
| Assistance & | amount to be charged | Training, Assistance or | |
| Refresher Training | by us | Refresher Training begins | |
| Name of Fee | Amount | Due Date | Remarks |
| Technician Services | Currently $700 to $900 | Upon receipt of | Field visits for |
| per diem plus travel and lodging expenses. | invoice | equipment repair and maintenance; rates may increase over time. | |
| On-site Contract | Currently $900 per | Upon receipt of | Only if franchisee |
| Management | diem or per service call plus travel and lodging expenses. | invoice | requests; rates may increase over time. |
| Renewal | 20% of the then current Initial Franchise Fee | Upon signing Franchise Agreement | |
| Transfer | 40% of the then current Initial Franchise Fee | Before transfer is effective | See Note 5 below |
| Internal Transfer | $500 | Before transfer is effected | See Note 5 below |
| Attorney Fees and | Actual fees and costs | As incurred | Payable upon your |
| Costs | failure to comply with the Franchise Agreement. | ||
| Supplier Approval | Actual costs of testing supplier | Upon receipt of bill | See Note 6 below |
| Audit Costs | Actual costs of audit plus interest on amount of overdue monies | Upon receipt of bill | See Note 7 below |
| Indemnification | Actual costs of indemnification | Upon receipt of bill | See Note 8 below |
| Replacement Manual | $200 for each | As incurred | |
| Fee | replacement manual | ||
| Liquidated Damages | Will vary under the circumstances | If Franchise Agreement is terminated as a result of your default | See Note 9 below |
| Conference | Up to $500 | When billed; up to one | See Note 10 below |
| Registration Fee | year in advance. | ||
| 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. |
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees must pay several initial and ongoing fees. The initial fees include a $29,500 Initial Franchise Fee, which is non-refundable. Additionally, franchisees must purchase a Base Equipment Package for $166,500, which includes at least three model 4820 DryJect® machines and spare parts; this is also nonrefundable.
Ongoing fees for Dryject franchisees include a Royalty Service Fee, which is the greater of 8% of Gross Revenues or a minimum monthly fee that escalates over time: $450 per month after the first three months of operation, $900 per month in the second full calendar year, $1,300 per month in the third, and $1,450 per month in the fourth year and onward. There is also a National Marketing Fund contribution, which is the greater of 2% of Gross Revenue or a fixed monthly amount that increases from $0 in months 1-3 to $100 in months 4-12, $200 in months 13-24, $300 in months 25-36, and $500 from month 37 onward.
Other potential fees include a Non-Compliance Fee of $100 per incident plus 1½% interest per month for overdue payments, credit card processing fees, costs for additional training and assistance, technician service fees (currently $700 to $900 per diem plus expenses), on-site contract management fees (currently $900 per diem or per service call plus expenses), renewal fees (20% of the then-current Initial Franchise Fee), transfer fees (40% of the then-current Initial Franchise Fee for transfers to a third party, or $500 for internal transfers), attorney fees and costs, supplier approval costs, audit costs, indemnification costs, replacement manual fees ($200 each), liquidated damages, conference registration fees (up to $500), costs for resolving customer complaints, and costs related to failure to maintain insurance. These fees cover various services, support, and compliance measures provided by Dryject, as well as penalties for non-compliance or specific requests made by the franchisee.