What is the relationship between Dryject's initial franchise fee in Item 5 and the availability of financing in Item 10?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5 INITIAL FEES**
Upon our signing the Franchise Agreement, you must pay to us an Initial Franchise Fee of $29,500. The Initial Franchise Fee is fully earned and non-refundable in consideration of administrative and other expenses incurred by us in entering into the Agreement and for our lost or deferred opportunity to enter into the Agreement with others. There is no financing available from us for the payment of the Initial Franchise Fee. The Initial Franchise Fee is uniform to all franchise owners.
You will purchase from us or our affiliate proprietary equipment consisting of, at a minimum, three model 4820 DryJect® machines and certain spare parts for these machines (the "Base Equipment Package"). The purchase price for the Base Equipment Package is $166,500 and is nonrefundable and uniform to all franchise owners.
You pay us or our affiliate no other fees or payments for services or goods before
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the initial franchise fee is $29,500. Item 5 explicitly states that there is no financing available from Dryject for this fee. This means prospective franchisees must secure funding for the initial franchise fee through their own means, such as personal savings, loans from banks or credit unions, or other external financing options.
For franchisees in Maryland and Minnesota, there are specific addenda that affect the initial fee. In Maryland, the initial fees and payments are deferred until Dryject completes its pre-opening obligations under the franchise agreement. Similarly, in Minnesota, all initial fees and payments are deferred until Dryject has fulfilled its initial pre-opening obligations and the franchise is open for business. These deferral arrangements could ease the initial financial burden on franchisees in those states.
While Dryject does not offer direct financing for the initial franchise fee, Note 4 in Item 7 mentions that with acceptable credit, the model 4820 DryJect® machine can be leased for approximately $1,000 per month per machine from various third-party leasing companies. Since the minimum equipment package includes three of these machines, this leasing option could significantly reduce the upfront capital expenditure required for equipment. Franchisees should investigate these third-party leasing options to determine if they meet their financial needs and creditworthiness.
Prospective franchisees should carefully consider the initial investment requirements, including the initial franchise fee and equipment costs, and explore all available financing and leasing options. Understanding the specific terms and conditions in their state, especially regarding deferral of fees, is crucial for financial planning. It would be prudent to discuss financing options with Dryject during the due diligence process to gain a comprehensive understanding of available resources and potential challenges.