What is the minimum Royalty Service Fee for Dryject franchisees during the third 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 are obligated to pay a Royalty Service Fee, which is the greater of 8% of their annual Gross Revenues or a predetermined minimum annual amount. This minimum amount varies depending on the calendar year of operation. For the third full calendar year, Dryject franchisees must pay a minimum of $1,300.00 per month, which totals $15,600 annually.
This minimum Royalty Service Fee is a crucial factor for prospective Dryject franchisees to consider when projecting their expenses and profitability. Even if a franchisee's gross revenues are low in the third year, they are still obligated to pay the $15,600 minimum. This could impact cash flow, especially in the early stages of the business when establishing a customer base.
Dryject franchisees are required to report their Gross Revenues monthly and make payments towards the Annual Royalty Service Fee by the 15th day of the following month. Once a franchisee's cumulative monthly Gross Revenues exceed the Annual Royalty Service Fee Gross Revenue Equivalent, Dryject 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 Fee Gross Revenue Equivalent. This ensures that Dryject receives either the minimum fee or a percentage of the revenue, whichever is higher.