Chem-Dry Franchise Cost & Fees
Date of Incorporation: 1977
Franchising Since: 1978
Headquarters: Logan, Utah
Business Description: The Franchisor is Harris Research, Inc. (HRI). Harris Research, Inc. 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 Harris Research, Inc.’s “Chem-Dry” specifications, standards, operating procedures, supplies and specialized equipment.
Franchise Offer: The franchise offered is for the operation of a Chem-Dry business which provided carpet cleaning, upholstery cleaning, spot removal and protecting services, including removing red stains, treating pet urine odor on carpets and imparting stain resistance to carpet fibers. The franchisee also may offer and perform additional approved services which may require certification by successful completion of additional training and/or the purchase of additional equipment and cleaning solutions.
Financial Assistance: However, with approved credit HRI may finance the Initial License Fee portion of the Initial Fee for qualified prospective franchisees under specified terms and conditions. HRI offers indirect financing on New Business Sets or van packages to its franchisees through Aztec Financial, LLC.
Training and Assistance: Before opening, franchisees must complete the initial training on the operation of a Chem-Dry business and must train their employees. Franchisees are responsible for all travel expenses and living expenses incurred in connection with the training program. The training consists of both classroom and on-the-job training. Franchisees are required to complete at least one training course per calendar year for each authorized service the business offers.
Territory: The franchisee must operate the 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.
Term of Agreement and Renewal: The term of the franchisee agreement is five years with the option to renew for one successor term of five years, if requirements are met.
Obligations and Restrictions: Franchisees are not obligated to participate personally in the direct operation of the Chem-Dry Business, although HRI recommends that they do so. Franchisees are responsible for the successful operation of the Chem-Dry Business and are directly responsible to HRI under the Franchise Agreement whether or not they participate in day-to-day operations. 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 HRI for the Chem-Dry Business.
Estimated Number of Units: 3,515
|Name of Fee||Low||High|
|Initial License Fee||$3,000||$21,500|
|New Business Set||$0||$53,395|
|Three Month's Rent||$0||$4,000|
|Telephone and Business License||$400||$4,000|
|Additional Funds - 3 months||$2,500||$9,000|
|Advertising - 3 months||$5,000||$10,000|
|Total Estimated Initial Investment||$13,300||$155,595|
|Type of Fee||Amount|
|Monthly Franchise Fee||$392.73|
|Customer Service Management Software Fee||$70 - $120 per month, after an initial set up fee of $200|
|Yearly Minimum Purchase Amount||$3,000|
|Successor Franchise Fee||$1,000|
|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|
|Equipment Transfer||$50 per unit.|
|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 Water Damage Restoration Service||$7,000 - $20,000|
|Optional Leather Cleaning Service||$500 - $1,200|
|Optional Granite Cleaning Service||$330 - $600|
|Optional Website||$100 setup, $25 month per site.|
|Optional Web Marketing Services - SEO, PPC or Social Media Management||$100 - $150 for setup, $10 - $150 per month per program.|
|Optional Local Search Directory, Premium Level Service||$100 setup, $65 per month.|
|Optional Additional Operations Manual||$100|
|Fine for Improper Advertising||Up to $2,000|
|Fine for use and/or possession of NON Chem-Dry Products||Up to $3,000|
|Fine for unapproved Cleaning Systems or Equipment||Up to $5,000|
|Fine for Offering NON Approved Services||Up to $5,000|
|Fine for accepting and performing a job outside of the franchised area||Up to $2,000|
|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.|
|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: 2016
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