What is the Dryject Franchise Owner's obligation for reporting Gross Revenues?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
You must authorize your bank to accept automatic withdrawals for all fees to us through Electronic Funds Transfer (EFT) of the stated amount from your bank into our bank account when due, and provide us with all documents necessary to direct your bank to honor these pre-authorized bank debits.
You must report to us your monthly Gross Revenues by the 15th of the following month. The term "Gross Revenues" means the amount of all receipts for the sale of any products or services by your Franchised Business and income of every other kind and nature related to the Franchised Business, whether for products or services, cash, exchange, or credit, regardless of collection in a case of credit, less any refunds; provided, however, that "Gross Revenues" will not include any sales taxes or other taxes collected by Franchise Owner for transmittal to the appropriate taxing authority.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Franchise Owners are obligated to report the Gross Revenues of their Franchised Business operations to Dryject on a monthly basis. This report must be submitted by the 15th day of the month for the preceding month. Gross Revenues include all receipts from the sale of products or services, and all income related to the Franchised Business, whether in cash, exchange, or credit, but excludes sales taxes or other taxes collected for transmittal to taxing authorities.
This reporting requirement is crucial for calculating the Annual Royalty Service Fee, which is 8% of the annual Gross Revenues or the annual total of the minimum monthly Royalty Service Fee amounts, whichever is greater. The minimum monthly payment varies based on the calendar year of operation, starting at $450 per month in the first partial calendar year (starting month four) and increasing to $1,450 per month by the fourth full calendar year.
Dryject requires franchisees to authorize automatic withdrawals via Electronic Funds Transfer (EFT) for all fees. If a Dryject franchisee under-reports Gross Revenues by 5% or more, Dryject may conduct an audit, and the franchisee will be required to pay a Non-Compliance Fee and the cost of the audit, as well as interest on past due amounts. Furthermore, if the cumulative monthly Gross Revenues exceed the Annual Royalty Service Fee Gross Revenue Equivalent, Dryject will collect the minimum monthly Royalty Service Fee plus an additional 8% on the excess amount.