Chem-Dry Franchise Cost & Fees

SKU: 918a938a6006 Category: Tag:

Description

Year Business Began: 1977 Franchising Since: 1978 Headquarters: Nashville, TennesseeEstimated Number of Units: 3,535 Franchise Description: The franchisor is Harris Research, Inc. (HRI). The franchisor has designed and developed a method for establishing, operating and performing carpet and upholstery/drapery cleaning, spot removal, protective services, and tile and stone care services, using HRI’s Chem-Dry specifications, standards, operating procedures, supplies and specialized equipment, all of which may be improved, further developed, or otherwise modified. HRI developed and manufactures the cleaning solutions used by Chem-Dry Businesses. The franchise offered is for the operation of a Chem-Dry business which provides carpet cleaning, upholstery cleaning, spot removal, protective services and other authorized services. Training Overview: Before opening, franchisees must complete the initial training on the operation of a Chem-Dry business and must train their employees. The New Buyer Training is a three-week program consisting of two weeks of at home study and one week of classroom/hands-on training. New Buyer Training will be held at HRI corporate headquarters in Nashville, Tennessee or Logan, Utah, or another location designated by the franchisor. Franchisees are required to complete at least one in-person training course per calendar year and various online or other electronic training modules or seminars as required for each authorized service the business offers. Territory Granted: Franchisees must operate their Chem-Dry Business within the non-exclusive Franchised Area identified in the Franchise Agreement. The number of franchises which can operate and perform Chem-Dry businesses per Franchised Area at any given time is determined by dividing the current population of the area by 60,000. Franchisees must operate and conduct their businesses from a single location within the Franchised Area from which they may operate as many crews, teams, sales forces and vans as they desire.Obligations and Restrictions: Franchisees are not obligated to participate personally in the direct operation of the Chem-Dry Business, although the franchisor recommends that they do so. Franchisees are responsible for the successful operation of the Chem-Dry Business and are directly responsible to the franchisor under the Franchise Agreement whether or not they participate in day-to-day operations. The operator is obligated to successfully complete the franchisor’s Initial and New Buyer Training and other training program(s). The identity of the operator must be disclosed to HRI. If franchisees are a corporation, limited liability company, partnership, or other entity, each of the owners must personally guarantee the obligations under the Franchise Agreement and agree to be bound personally by every contractual provision. Franchisees must not, without the prior written approval of HRI, offer or sell any type of service or offer, sell or use any product that is not authorized by the franchisor for the Chem-Dry Business. Term of Agreement and Renewal: The length of the initial franchise term is 5 years. HRI may offer a 10-year franchise agreement when business purposes warrant a longer term. Franchisees may have the right to acquire a 5-year successor term, if they meet certain qualifications.Financial Assistance: With approved credit the franchisor may finance the Initial License Fee portion of the Initial Fee for qualified prospective franchisees under specified terms and conditions. The franchisor offers indirect financing on New Business Sets or van packages to its franchisees through Aztec Financial, LLC (a non-affiliated equipment finance company). Investment Tables: Estimated Initial Investment Name of Fee Low High Initial License Fee $6,000 $23,500 New Business Set $0 $57,495 Additional Equipment Purchases $0 $8,462 Cargo Van $0 $35,000 Three Month’s Rent $0 $4,000 Telephone and Business License $400 $4,000 Training and Convention Attendance Expenses $1,250 $3,000 Insurance $600 $6,000 Additional Funds – 3 months $2,500 $9,000 Computer System $800 $2,000 Advertising – 3 months $5,000 $10,000 Total Estimated Initial Investment $16,550 $162,457 Other Fees Type of Fee Amount Monthly Franchise Fee $400.98 Yearly Minimum Purchase Amount $3,000 Successor Franchise Fee $1,000 Customer Service Management Software Fee $70 – $120 per month, after an initial set up fee of $200 Transfer Fee $1,500 – $3,000 Transfer Fee for prospect introduced to franchisees by HRI or its affiliates or working with HRI in the past 18 months 10% of the sales price, with a minimum of $4,000 Guarantor Change $200 Name Change $100 per franchise. Consolidated Office Agreement Fee $150 Credit Card Processing Fee Will vary. CDCS Program Handling & Processing Fee Currently 15%-25% of invoice total. Web Domain Fee $75 per domain for a five-year term. Lead Referral Fee Up to $50 Training $500 – $1,000 New Franchise Training Fee – for additional attendees $50 per day per attendee. Optional Franchise Mentor Fee $135 – $250 Convention Fee $1,299 – $1,999 Optional Tile and Stone Care Service $4,500 – $9,000 Optional Leather Cleaning Service $500 – $1,200 Optional Website $100 setup, $25 per month per site, depending on selected upgrades Optional Web Marketing Services – SEO, PPC or Social Media Management $50 – $150 for setup, $100 – $150 per month per program Optional Video Customization$50 per video/$150 initial set fee for new YouTube channel setup Optional Local Search Directory, Premium Level Service $100 setup, $65 per month. Optional Business Phone Number Service $3.00 – $25.00 per month per line depending on features Optional Local Email Account$25 Optional Additional Operations Manual $100 Fine for Improper Advertising Up to $2,000 per violation Fine for use and/or possession of NON Chem-Dry Products Up to $3,000 per violation Fine for unapproved Cleaning Systems or Equipment Up to $5,000 per violation Fine for Offering NON Approved Services Up to $5,000 per violation Fine for accepting and performing a job outside of the franchised area Up to $2,000 per violation Fine for failed QC evaluation Will vary according to size of job. Fine for Failure to Fulfill Annual Training Requirement Up to $500 Fine for Failure to Fulfill National Convention Attendance Requirement Up to $500 Customer Compliant Resolution Will vary under circumstances. Audit $500 Late Fee and Interest One time late fee of $100 and 1.5% per month or highest contract rate allowed by law. Costs and Attorneys’ Fees Will vary under circumstances. Indemnification Will vary under circumstances. The above information has been taken from the FDD of Chem-Dry. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Monthly Franchise Fee $400.98
Yearly Minimum Purchase Amount $3,000
Successor Franchise Fee $1,000
Customer Service Management Software Fee $70 – $120 per month, after an initial set up fee of $200
Transfer Fee $1,500 – $3,000
Transfer Fee for prospect introduced to franchisees by HRI or its affiliates or working with HRI in the past 18 months 10% of the sales price, with a minimum of $4,000
Guarantor Change $200
Name Change $100 per franchise.
Consolidated Office Agreement Fee $150
Credit Card Processing Fee Will vary.
CDCS Program Handling & Processing Fee Currently 15%-25% of invoice total.
Web Domain Fee $75 per domain for a five-year term.
Lead Referral Fee Up to $50
Training $500 – $1,000
New Franchise Training Fee – for additional attendees $50 per day per attendee.
Optional Franchise Mentor Fee $135 – $250
Convention Fee $1,299 – $1,999
Optional Tile and Stone Care Service $4,500 – $9,000
Optional Leather Cleaning Service $500 – $1,200
Optional Website $100 setup, $25 per month per site, depending on selected upgrades
Optional Web Marketing Services – SEO, PPC or Social Media Management $50 – $150 for setup, $100 – $150 per month per program
Optional Video Customization $50 per video/$150 initial set fee for new YouTube channel setup
Optional Local Search Directory, Premium Level Service $100 setup, $65 per month.
Optional Business Phone Number Service $3.00 – $25.00 per month per line depending on features
Optional Local Email Account $25
Optional Additional Operations Manual $100
Fine for Improper Advertising Up to $2,000 per violation
Fine for use and/or possession of NON Chem-Dry Products Up to $3,000 per violation
Fine for unapproved Cleaning Systems or Equipment Up to $5,000 per violation
Fine for Offering NON Approved Services Up to $5,000 per violation
Fine for accepting and performing a job outside of the franchised area Up to $2,000 per violation
Fine for failed QC evaluation Will vary according to size of job.
Fine for Failure to Fulfill Annual Training Requirement Up to $500
Fine for Failure to Fulfill National Convention Attendance Requirement Up to $500
Customer Compliant Resolution Will vary under circumstances.
Audit $500
Late Fee and Interest One time late fee of $100 and 1.5% per month or highest contract rate allowed by law.
Costs and Attorneys’ Fees Will vary under circumstances.
Indemnification Will vary under circumstances.