What is the Non-Compliance Fee for Dryject franchisees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
d in your Franchise Agreement.
Note 3. Non-Compliance Fee. If you fail to pay your Royalty Service Fee, National Marketing Fund contribution or any amount owing to us or our affiliates (if applicable), by its due date, then you are subject to a Non-Compliance Fee of $100 per incident plus 1½ % interest per month on the unpaid balance or the maximum interest permitted by law if it is lower (in California the highest interest rate by law is 10% annually).
Note 4. Initial, Additional and Refresher Training, and Assistance. We will provide initial training for the Franchise Owner(s) and, if only one owner, then one additional person at no extra charge. We also permit you to send two additional people to the initial training class on a spaceavailable basis at no additional charge. We also reserve the right to charge a per diem fee for other training courses. As of the date of this Disclosure Document, the daily per diem fee ranges from $700-$900, depending upon our personnel involved in this training.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a Non-Compliance Fee is imposed if a 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. The Non-Compliance Fee is $100 per incident.
In addition to the $100 fee, Dryject also charges interest on the unpaid balance. The interest rate is 1½% per month. However, if the maximum interest rate permitted by law is lower than 1½% per month, the legal maximum will apply. For example, in California, the highest interest rate allowed by law is 10% annually, which would take precedence over the 1½% monthly rate.
The FDD also specifies that if Dryject audits a franchisee's business and finds under-reported Gross Revenues by 5% or more, or if the franchisee fails to maintain required insurance or meet minimum advertising requirements, a Non-Compliance Fee will be charged along with the cost of the audit and interest on past due amounts. This highlights that the Non-Compliance Fee isn't just for late payments, but also for other failures to adhere to the Franchise Agreement.