When is the Dryject Non-Compliance Fee due?

According to Dryject's 2025 Franchise Disclosure Document, the Non-Compliance Fee is due when payment is overdue. This fee is $100 per incident, along with interest of 1½% per month on the unpaid balance. However, the interest rate may be lower if the maximum interest permitted by law is less than 1½% per month. For example, in California, the highest interest rate allowed by law is 10% annually.

This fee applies if a Dryject franchisee fails to pay their Royalty Service Fee, National Marketing Fund contribution, or any other amount owed to Dryject or its affiliates by the due date. It's important for prospective franchisees to understand that prompt payment of all fees is crucial to avoid incurring this additional expense. The Non-Compliance Fee is in addition to the overdue amount itself, so failing to pay on time can quickly lead to a significant increase in the total amount owed.

Franchisees should be aware of the specific due dates for all fees outlined in the Franchise Agreement to avoid triggering the Non-Compliance Fee. Setting up systems for timely payments, such as automatic debit/EFT, as described in Note 1, can help ensure that payments are made on time and avoid the risk of incurring this fee. The Non-Compliance Fee serves as a penalty for late payments and underscores the importance of adhering to the financial obligations outlined in the franchise agreement.