Under what conditions is the fee for the Dryject Base Equipment Package considered fully earned?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ng on a month-to-month basis under the terms and conditions of Our then-current form of franchise agreement. In such circumstances, and notwithstanding the foregoing, We may, on ten (10) days written notice, terminate Your Franchise Agreement.
7. FRANCHISEE'S PAYMENTS
(a) You shall pay to Us an Initial Franchise Fee of Twenty-Nine Thousand Five Hundred Dollars ($29,500.00), payable by a certified or cashier's check. Such Initial Franchise Fee shall be due and payable in full upon the execution of this Agreement. You understand and acknowledge that the Initial Franchise Fee is non-refundable and is fully earned by Us at the time the parties execute this Agreement.
- (b) You agree to purchase from Us all proprietary equipment required to operate the Franchis
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the fee for the Base Equipment Package, which costs $166,500.00, is considered fully earned by Dryject upon the execution of the Franchise Agreement. This means that once the agreement is signed, Dryject has earned the fee, regardless of whether the franchisee has commenced the Initial Training Program, received the equipment, or 90 days have passed since the effective date.
This has significant implications for a prospective Dryject franchisee. Because the fee is earned upon signing, it is non-refundable. If a franchisee signs the agreement but then, for any reason, cannot proceed with the franchise, Dryject keeps the $166,500.00. This is a standard practice in franchising, as the franchisor incurs costs and obligations upon execution of the agreement.
It is crucial for potential Dryject franchisees to conduct thorough due diligence before signing the Franchise Agreement. This includes carefully reviewing the FDD, understanding the obligations, and ensuring they have the financial resources and commitment to proceed. Given the non-refundable nature of the Base Equipment Package fee, franchisees should be certain of their decision before executing the agreement.