Are insurance proceeds for loss of business included in Dryject's Gross Revenues?

According to Dryject's 2025 Franchise Disclosure Document, insurance proceeds received for loss of business due to a casualty or similar event affecting the operation of the franchised business are included in Gross Revenues. This means that if a Dryject franchisee experiences a business interruption covered by insurance, the resulting insurance payout will be factored into the calculation of their Gross Revenues.

This inclusion of insurance proceeds in Gross Revenues has implications for the franchisee's royalty and marketing fund fee obligations. Dryject franchisees pay an Annual Royalty Service Fee of eight percent (8%) of annual Gross Revenues. They also pay a Marketing Fund Fee, which is the greater of two percent (2%) of monthly Gross Revenues or a fixed monthly amount that varies based on the franchisee's tenure. Therefore, an influx of insurance proceeds could increase the amount owed for these fees.

It is important for prospective Dryject franchisees to understand how insurance proceeds are treated in the calculation of Gross Revenues, as this can impact their financial obligations to the franchisor. Franchisees should carefully review their insurance policies and understand the potential impact of any payouts on their royalty and marketing fund fee obligations. They should also consult with a financial advisor to assess the financial implications of this provision.