When are payments toward the Annual Royalty Service Fee due for a Dryject franchise?

According to Dryject's 2025 Franchise Disclosure Document, payments toward the Annual Royalty Service Fee are due monthly, specifically on or before the 15th day of the month for the preceding month. Franchisees are required to report their Gross Revenues on a monthly basis as well.

Dryject requires franchisees to authorize automatic withdrawals via Electronic Funds Transfer (EFT) for all fees. This means a prospective franchisee must provide the necessary documentation to allow Dryject to debit their bank account directly for the fees owed. The FDD also mentions the possibility of paying via Visa or MasterCard, subject to Dryject's approval and the franchisee covering any processing fees.

The Annual Royalty Service Fee is calculated as the greater of 8% of annual Gross Revenues or the annual total of minimum monthly payments. The minimum monthly payment varies depending on the calendar year of operation, starting at $450 per month during the first partial calendar year (starting month four) and increasing to $1,450 per month by the fourth full calendar year. It's important to note that the minimum royalty is only waived for the first three months after signing the Franchise Agreement.

If a Dryject 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 its percentage of revenue as the franchisee's business grows. Failure to pay the Royalty Service Fee by the due date may result in a Non-Compliance Fee of $100 per incident plus 1½% interest per month on the unpaid balance.