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Chem-Dry
Chem-Dry franchises enable the establishment and operation of businesses providing carpet cleaning, upholstery cleaning, hard surface cleaning, spot removal, and other related services to residential and commercial customers using a proprietary system and trademarks. Franchisees are granted exclusive geographic territories and must adhere to the franchisor's methods outlined in operations manuals, with the option to operate from home for the first 24 months. The business model focuses on building a network of local franchise owners targeting markets with demand for professional cleaning services.
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Franchise Costs
Tiered royalty (4-7% of gross sales, starting at 7%) + up to 3% brand marketing fee + $450/mo technology fee
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataChem-Dry Franchise Analysis
A carpet cleaning powerhouse franchising since 1978 now faces a network squeeze, with Item 20 flashing warning signals on closures and exits. No Item 19 means zero official earnings insight, forcing investors to hunt elsewhere for proof of payback. Is Chem-Dry's proprietary dry-cleaning edge enough to reverse the tide, or does the contraction signal deeper woes?
Item 7 lays out the startup reality: total investment spans $119,263 to $265,110, including a $36,000 franchise fee, with home-based operations possible for 24 months to slash overhead. Ongoing fees from Item 6 bite at a tiered royalty of 4-7% on gross sales (starting at 7%), up to 3% brand marketing fund, and a flat $450 monthly technology fee—potentially stacking 10%+ on top of revenue before profit. Without Item 19 disclosure, franchisees can't bank on validated averages; this opacity heightens risk in a model reliant on residential and commercial repeat business.
System health in Item 20 paints a contraction picture: units fell from 1,240 in 2023 to 1,059 in 2024—a stark 15% drop—fueled by 101 terminations, 94 non-renewals, and just 29 transfers against 53 projected new units. Litigation notes flag disputes over contracts and post-termination covenants, including settled franchisor claims and franchisee arbitration. For investors eyeing exclusive territories, this volatility suggests saturation or operational hurdles; the lack of earnings data amplifies the gamble on whether Chem-Dry's 1,000+ footprint can stabilize and deliver ROI amid the shrinkage.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Chem-Dry Compares
Key Insights
- Top 10 largest franchise system in Cleaning Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Chem-Dry Current | $119K – $265K | $36K | 7.0% | 1,099 |
| COVERALL COMMERCIAL CLEANING FRANCHISE | $18K – $64K | $16K | 5.0% | 5,669 |
| VCS BUSINESS | $14K – $37K | $5K | 6.0% | 1,914 |
| THE MAIDS | $82K – $160K | $57K | 6.9% | 1,517 |
| MERRY MAIDS | $127K – $170K | $55K | 7.0% | 802 |
| OpenWorks | $4K – $134K | $25K | 15.0% | 615 |
Cleaning Services Average 78 franchises | $177K – $370K | $46K | 7.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 78 Cleaning Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+35 more states
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Unlock location growth dataFranchisee Contacts
980 franchisee contacts on file from official FDD filings.
980 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Breach of post-termination covenants, breach of contract, and related claims involving former franchisees (one franchisor-initiated lawsuit settled with injunctions; one franchisee-initiated lawsuit with parallel arbitration).
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Chem-Dry franchise ranges from $119,263 to $265,110. This includes a franchise fee of $36,000. Ongoing royalty fees are 7.0% of gross sales.
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