Is the initial franchise fee for a Dryject franchise refundable?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 5 — INITIAL FEES (FDD page 13)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the initial franchise fee of $29,500 is generally non-refundable. This fee is considered fully earned by Dryject upon signing the Franchise Agreement. This non-refundable nature compensates Dryject for administrative expenses and the lost opportunity to franchise with someone else. However, there are exceptions to this policy in certain states.
Specifically, for franchisees in Maryland and Minnesota, the initial fees and payments are deferred until Dryject has fulfilled its pre-opening obligations and the franchise is open for business. This means that in these states, the franchisee doesn't pay the initial fee until Dryject has met its obligations.
Furthermore, a rider to the franchise agreement states that in the event a franchisee does not commence operating the franchised business within the specified time, the agreement can be terminated, and Dryject may keep the initial franchise fee to cover lost opportunity costs and expenses. Therefore, while the initial fee is generally non-refundable, franchisees should be aware of the specific conditions under which they might be required to pay or forfeit the fee, especially concerning the commencement of operations and any state-specific regulations.