Updated October 19, 2021.
Detailed Estimates of Chem-Dry Franchise Costs Based on Item 7 (Estimated Initial Investment) of Chem-Dry’s 2021 Franchise Disclosure Document
1. Initial License Fee: $23,500
- In order to acquire a Chem-Dry franchise, you must pay the franchisor the Initial Fee for the chosen franchise offer as outlined in Item 5.
- The Initial Fee is non-refundable, and can be paid in a single lump sum payment or you may be eligible for financing of up to 40% of the Initial License Fee portion of the Initial Fee.
- When you sign the Franchise Agreement and the Business Note, you must pay a down payment of $3,600 to $14,100 to the franchisor toward the Initial License Fee.
- If you pay the Initial License Fee in full within six months of signing the Franchise Agreement and the Business Note, Chem-Dry will offer you a Cash Discount of 12% of the Initial License Fee amount.
2. New Business Set: $33,495 to $59,995
- Other than in the states of Hawaii and Alaska, the franchisor does not offer financing on the New Business Set equipment package portion of the Initial Fee.
3. Optional Additional Equipment: $0 to $22,701
4. Equipment Installation, Optional Upgrade to Full Van Wrap, Optional Additional Uniforms, Office Supplies, Shelving, Ramps: $0 to $6,000
5. Cargo Van: $0 to $35,000
- At least one white cargo van is required for the operation of each Chem-Dry Business to transport equipment and cleaning solutions to a job site.
- A Chevy GM 2500 3/4 ton with less than 30,000 miles and less than 3 years old is recommended for the Executive Truck Mount Direct Drive.
- Some additional approved services may require you to utilize a second van, or a trailer, for the transportation of additional equipment and supplies.
- If you already own a suitable insurable van, there may be no need to purchase or lease an additional van; however, any van and trailer must comply with standards of professionalism a consumer would expect when contracting for Chem-Dry services and meet the current Advertising Rules and Guidelines regarding type of van and proper markings.
6. Installation Costs: $600 to $5,000
- You must pay a third-party vendor to install the van graphics and any truck mount equipment.
7. Three Months’ Rent: $0 to $4,000
- The purchase or lease of real property is not necessary to the operation of a Chem-Dry Business. You may operate out of your own home (where zoning and other laws and regulations permit) as space requirements are minimal, provided your home is within the non-exclusive area designated on the Franchise Agreement (“Franchised Area”).
- If you have no storage facilities whatsoever, the rental of a unit the size of a single car garage, in which a telephone can be installed, inventory and equipment can be delivered to, stored, and which is in accordance with all operational standards, is adequate.
8. Telephone and Business License: $400 to $4,000
9. Training and Convention Attendance Expenses: $1,250 to $3,000
- The New Business Set includes: (1) the registration costs for up to two attendees at the New Buyer Training and (2) the registration fee and lodging (one hotel room) for up to two people to attend the first Chem-Dry Annual Convention immediately following your completion of Initial and New Buyer Training.
- Additional attendees at New Buyer Training and franchisees purchasing an existing Chem-Dry franchised business will pay $50 per person per day to attend New Buyer Training.
- You are responsible for costs associated with travel to attend training and convention and for your own accommodations and meals while there.
10. Insurance: $600 to $7,000
- You must obtain and maintain business liability coverage as well as vehicle liability coverage as a condition for receiving and maintaining a franchise.
11. Additional Funds for 3 Months: $2,500 to $9,000
- This item estimates your initial start-up expenses for the first 3 months of operation if you are developing one Franchised Area. You will need more funds if you are developing more than one Franchised Area.
- These expenses include payroll costs, but do not include any draw or salary for you. These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.
12. Computer System: $800 to $2,000
- A computer system suitable to maintain and service your business is required. If you already own a suitable computer system, there may be no need to purchase an additional one.
- You must also maintain an Internet connection and an email account and must check your email account at least daily. Cable or DSL internet connection is highly recommended.
13. Advertising – 3 Months: $5,000 to $10,000
- This item estimates direct mail, internet marketing, telephone directories, and other advertising for your business.
14. Total Estimated Initial Investment: $68,145 to $191,196
- The franchisor relied on its over 40 years of experience in the carpet and upholstery/drapery cleaning, spot removal, and protective services business to compile these estimates.