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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

Investment Tables:
Initial Investment
Name of Fee Low High
Initial License Fee $3,000 $21,500
New Business Set $0 $53,395
Cargo Van $0 $35,000
Three Month's Rent $0 $4,000
Telephone and Business License $400 $4,000
Training Expenses $1,000 $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 $13,300 $155,595
Other Fees
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 $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
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.
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: 2016

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