If Dryject collects accounts receivable, what deductions are made before remitting funds to the franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (x) Assign any and all accounts receivable to Us for collection. In connection therewith You hereby appoint Us as attorney-in-fact to engage in such collection activities following the termination or expiration of this Agreement and You specifically undertake to refrain from engaging in any such collection activities upon termination or expiration. We agree to employ good faith efforts, including, where appropriate in Our sole and exclusive judgment, the commencement of legal proceedings, to collect such accounts receivable. Nothing contained herein shall be construed or deemed to impose any duty or obligation upon Us to collect such accounts receivable and, if all or a portion of such accounts receivable are not collected by Us, You release and waive any claims thereto against Us. If We are successful in collecting all or a part of such accounts receivable, We shall remit to You such sums collected after first deducting any and all monies owed to Us; after deducting the pro rata cost of servicing the customer(s) with respect to whom the receivables were collected; and, after further deducting Our costs of collection; and,
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if Dryject is successful in collecting accounts receivable on behalf of a franchisee, they will remit the collected sums to the franchisee after deducting the following:
First, Dryject will deduct any and all monies owed to them by the franchisee. This could include unpaid franchise fees, royalties, or other debts the franchisee has with Dryject.
Second, Dryject will deduct the pro rata cost of servicing the customer(s) with respect to whom the receivables were collected. This implies that Dryject may allocate a portion of their operational or service costs to the collection of these specific receivables.
Third, Dryject will deduct their costs of collection. This covers any expenses Dryject incurs while attempting to recover the receivables, such as legal fees or administrative costs.