What is the minimum Royalty Service Fee for Dryject franchisees during the second full calendar year?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
lated using a calendar year.
The minimum monthly payment toward this Annual Royalty Service Fee will be based on calendar years: the first partial calendar year, starting month four: $450 per month; the second full calendar year: $900.00 per month or $10,800/year; the third full calendar year: $1,300.00 per month or $15,600/year; the fourth full calendar year and forward: $1,450.00 per month or $17,400/year. Annual Royalty Service Fee Gross Revenue Equivalent is: Annual Minimum Royalty Service Fee divided by .08 (8% Royalty). For example, the Annual Royalty Service Fee Gross Revenue Equivalent for the second year is $135,000 ($10,800 divided by .08).
Franchise Owner must report to Company the Gross Revenues of the Franchised Business operations on a monthly basis. Payments toward the Annual Royalty Service Fee must be made on a monthly basis and must be paid on or before the 15th day of the month for the preceding month.
Once Franchise Owner's cumulative monthly Gross Revenues during the course of the calendar year exceed Franchise Owner's Annual Royalty Service Fee Gross Revenue Equivalent, Company will collect the minimum monthly Royalty Service Fee plus an additional 8% on the amount of the monthly Gross Revenues that exceeds the Annual Royalty Service
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees must pay a Royalty Service Fee. This fee is calculated as the greater of 8% of annual Gross Revenues or the annual total of minimum monthly payments. For the second full calendar year of operation, the minimum monthly Royalty Service Fee is $900.00, which equates to $10,800 annually.
Dryject franchisees are obligated to report their Gross Revenues monthly and make payments towards the Annual Royalty Service Fee by the 15th of the following month. If a franchisee's cumulative monthly Gross Revenues exceed the Annual Royalty Service Fee Gross Revenue Equivalent, Dryject will collect the minimum monthly fee plus an additional 8% on the amount exceeding the equivalent. For the second year, the Annual Royalty Service Fee Gross Revenue Equivalent is $135,000.
For example, if a Dryject franchisee's monthly Gross Revenues for September are $50,000 and the total from January through September reaches $150,000, the September payment would include the minimum $900 plus 8% of the $15,000 excess over the $135,000 equivalent, totaling an additional $1,200. Therefore, the total payment for September would be $2,100. Franchisees must also authorize automatic withdrawals for all fees through Electronic Funds Transfer (EFT).