Splash and Dash Miscellaneous Fees
What are the “Other Fees” listed in the FDD? Why do I have to pay these fees?
Other fees listed in the FDD include miscellaneous business expenses that will contribute to your initial investment or monthly operating costs. These fees vary among franchisors but often include a one-time real estate and construction fee and monthly fees for POS, technology, licensing, bookkeeping, and a local microsite for your business.
Keep in mind that these are not “extra” expenses. As an owner of any business, franchise or not, you will be responsible for these things. Being a part of a franchise system, however, will save you having to research and implement POS services, software, bookkeeping services, and more on your own. This can be a frustrating and expensive process without the guidance and experience of a franchisor behind you, and you may end up spending a lot more time, money, and effort on finding the services that work best for your business. By stating the expenditures for these items in the FDD, the franchisor is also helping you plan and budget more effectively. As a franchisee, all of the trial and error work has been done for you, and you can rely on the franchisor’s proven systems and reliable vendors. Better yet, your franchisor can often secure you deals from vendors that you would not be able to get as a small independent business owner!
What does it mean if a franchisor does not list a fee for a certain type of expense?
If a certain expense is not listed in the FDD, it does not mean you are off the hook. This expense may still be necessary for your business to run smoothly, but if the franchisor leaves this out of their financial documentation, it means you are on your own in getting that service covered.
For example, the Splash and Dash FDD specifies a weekly bookkeeping fee of $150. While most of the competitors listed here don’t specify a weekly or monthly bookkeeping fee, that doesn’t mean you get it for free. More than likely, it means the franchisor does not provide that service. You will not only still be responsible for paying those fees, but also searching for and comparing bookkeeping solutions on your own. This can end up being more expensive when compared to the prices a franchise can offer if they have a large-scale contract with the service provider.
How do Splash and Dash fees compare to other franchisors?
To give you a better idea of how our fees compare to other franchise concepts on the market, we’ve put together a case study and drawn up comparisons both with other pet industry franchises as well as franchises in other industries.
Pet industry franchises
- Earthwise Pet
Other industry franchises
- Orangetheory Fitness
- Lash Lounge
- Massage Envy
- College Hunks (a junk removal and moving service)