What happens when a Dryject franchisee's cumulative monthly Gross Revenues exceed the Annual Royalty Service Fee Gross Revenue Equivalent?

According to the 2025 Dryject Franchise Disclosure Document, once a franchisee's cumulative monthly Gross Revenues during the calendar year exceed their Annual Royalty Service Fee Gross Revenue Equivalent, Dryject will collect the monthly Minimum Service Fee. In addition to the minimum service fee, Dryject will collect an additional eight percent (8%) on the amount of the monthly Gross Revenues that exceed the Annual Royalty Service Fee Gross Revenue Equivalent.

For example, in the second year of operation, the Annual Royalty Service Fee Gross Revenue Equivalent is $135,000, which is calculated by dividing the annual Minimum Service Fee of $10,800 by 0.08 (8% Royalty). If a franchisee's cumulative gross revenues exceed this amount, they will pay the minimum service fee for that month plus 8% of the amount exceeding $135,000.

This policy ensures that Dryject receives a royalty that reflects the franchisee's actual revenues, while also providing a minimum royalty payment regardless of revenue fluctuations. This structure is common in franchising, balancing the franchisor's need for consistent income with the franchisee's potential for growth.