factual

What is the minimum monthly service fee for a Dryject franchise during the second full calendar year?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

lars ($166,500.00) and is due and payable to Us upon the earlier of: (1) commencement of the Initial Training Program described in Section 13; (2) shipment of the Base Equipment Package to You; or (3) ninety (90) days after the Effective Date. The fee for the Base Equipment Package is fully earned by Us upon the execution of this Agreement and is non-refundable.

  • (c) You agree to pay to Us an Annual Royalty Service Fee of eight percent (8%) of the annual Gross Revenues generated by You in the Franchised Business or the annual total of the monthly Minimum Service Fee amounts, whichever is greater. The Annual Royalty Service Fee will be calculated using a calendar year.

The minimum monthly payment toward this Annual Royalty Service Fee ("Minimum Service Fee") will be based on Your total number of calendar years as a franchisee (initial Term and renewals): the first (1st) partial calendar year, beginning month four (4): Four Hundred Fifty Dollars ($450.00) per month; the second (2nd) full calendar year: Nine Hundred Dollars ($900.00) per month or Ten Th

Source: Item 23 — RECEIPT (FDD pages 50–68)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, the minimum monthly service fee during the second full calendar year of operation is $900. This fee contributes to the Annual Royalty Service Fee, which franchisees must pay. Alternatively, the annual payment option for the second year is $10,800.

Dryject franchisees should note that this minimum service fee is a baseline. If 8% of their gross revenues exceeds the annual total of the minimum monthly service fees, they will pay the higher amount as their Annual Royalty Service Fee. The FDD specifies that the Annual Royalty Service Fee is either 8% of annual Gross Revenues or the annual total of the monthly Minimum Service Fee amounts, whichever is greater.

For example, Dryject calculates the Annual Royalty Service Fee Gross Revenue Equivalent for the second year to be $135,000, which is derived by dividing the $10,800 annual minimum service fee by 0.08 (8%). This means that if a franchisee's gross revenues exceed $135,000 in their second year, they will owe more than the minimum service fee. Franchisees must report their gross revenues monthly and make payments towards the Annual Royalty Service Fee by the 15th of the following month.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.