When are Dryject transfer fees billed and earned?

According to Dryject's 2025 Franchise Disclosure Document, transfer fees are billed and earned when a franchise is transferred between franchisees. This means that if a franchisee decides to sell their Dryject franchise to another party, Dryject will bill the transfer fee at the time of the transfer and recognize it as earned revenue at the same time. This is a fairly standard practice in franchising, as transfer fees compensate the franchisor for the work involved in approving the transfer and onboarding the new franchisee.

For a prospective Dryject franchisee, this means that if they later decide to sell their franchise, they should be prepared to pay a transfer fee at the time of the sale. The FDD does not specify who is responsible for paying this fee (the seller or the buyer), so this would be a point for a prospective franchisee to clarify during their due diligence. It is important to note that Dryject must approve the transfer, and the fee is associated with that process and the recognition of the new franchisee.

It's important for potential franchisees to understand the timing of billing and revenue recognition for various fees, as this can impact their financial planning and cash flow management. Knowing when fees are billed and earned helps franchisees anticipate expenses and understand how the franchisor recognizes revenue, which can provide insights into the franchisor's financial performance.