When must payments toward the Annual Royalty Service Fee be made for a Dryject franchise?

According to Dryject's 2025 Franchise Disclosure Document, payments toward the Annual Royalty Service Fee must be made on a monthly basis. These payments are due on or before the fifteenth day of the month, covering the preceding month's services. This means that a Dryject franchisee needs to calculate and remit their royalty payment by the 15th of each month for the revenues earned in the previous month.

Dryject retains the right to modify the payment date and/or frequency of these payments. Should Dryject exercise this right, the Royalty Service Fee and/or Minimum Service Fee will be adjusted accordingly. This clause provides Dryject with flexibility but also introduces a degree of uncertainty for the franchisee, as their payment schedule could change.

In addition to the monthly payments, Dryject also stipulates that once a franchisee's cumulative monthly Gross Revenues exceed their Annual Royalty Service Fee Gross Revenue Equivalent, they will be required to pay the monthly Minimum Service Fee plus an additional eight percent on the amount of the monthly Gross Revenues that exceed the Annual Royalty Service Fee Gross Revenue Equivalent. This implies that franchisees need to closely monitor their revenue throughout the year to accurately calculate their royalty obligations, especially as they approach and exceed the Gross Revenue Equivalent threshold.

It is also important to note that Dryject can apply any payments made by the franchisee to any past due amounts owed for Royalty Service Fees, Marketing Fund Fees, purchases, interest, or any other indebtedness, regardless of any designation made by the franchisee. This gives Dryject significant control over the allocation of payments and could impact how a franchisee manages their financial obligations to the franchisor.