Chem-Dry Franchise Costs, Fees & FDD

Year Business Began: 1977

Franchising Since: 1978

Headquarters: Nashville, Tennessee

Estimated Number of Units: 1,685

Franchise Description: The franchisor is Chem-Dry, Inc. (formerly known as Harris Research, Inc.). The franchisor’s parent company is BFG Holdco, Inc. The ultimate parent company is BELFOR Holdings, Inc. The franchise offered is for the establishment and operation of a business offering carpet cleaning, upholstery cleaning, spot removal, hard surface cleaning, and other services, utilizing the Chem-Dry franchised business system. The Chem-Dry business can be operated in the territory from the franchisee’s home for the first 24 months of the term, and a commercial location thereafter.
Training Overview: Franchisees and their service technician must successfully complete the JumpStart Initial Training program before attending in-person business operations and managerial training (“initial training”) and before the opening of the Chem-Dry business. JumpStart includes a comprehensive preparation program that includes numerous pre-opening activities and may last six to eight weeks, depending on the pace the franchisee establishes to complete activities. Initial training takes place at BFG headquarters in Ann Arbor, Michigan or another location designated by the franchisor. It may be attended by the franchisee and the service technician, managing owner or, if applicable, the designated manager, at no additional fee. Initial training will last up to five days in duration. The managing owner or, if applicable, the designated manager, must attend the convention every year it is offered and pay the then-current registration fee. The managing owner or, if applicable, designated manager also must attend periodic refresher training courses and conferences, not to exceed one event per year, at the times and locations the franchisor determines.

Territory Granted: Franchisees will operate the Chem-Dry business from a location and within the territory that the franchisor approves. Franchisees may not perform services or advertise the services outside of the protected territory. The protected territory will consist of specific zip-code(s) that have been awarded to the franchisee. A territory will have approximately 100,000 to 150,000 households for a standard territory and approximately 75,000 for a small territory, although franchisees may purchase additional population for the standard territory for a cost of $0.20 per household up to a maximum of 180,000 households. During the term of the agreement, the franchisor will not license others the right to operate business using the Chem-Dry marks and providing the services through a franchise location within the territory.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. The franchisor requires that franchisees actively participate in the operation of the Chem-Dry business. If the franchisee will operate the Chem-Dry business through a business entity, they must designate at least one managing owner of the entity who will be the primary, individual contact with the Chem-Dry business and who the franchisor will approve at its sole discretion. Before commencing operation of the Chem-Dry business, franchisees must employ at least one person who has completed the initial training (which may be themselves). Before franchisees begin operating the Chem-Dry business, they must also hire one service technician who will be responsible for performing the services. During the term of the agreement, franchisees and their immediate family may not engage in any other business or activity and cannot have an interest in or business relationship with any competitor of Chem-Dry. Franchisees must offer and provide only the services that periodically required for Chem-Dry franchisees in the manner that the franchisor prescribes, and they may only provide the services the franchisor has authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional, consecutive term of 10 years is available, if franchisees meet the requirements.

Financial Assistance: The franchisor may offer franchisees financing for up to 50% of the initial franchise fee if they meet the qualifications. Other than described, the franchisor will not guarantee any notes, leases or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$18,000	$42,000
Initial Package Fee	$37,500	$41,250
Truck Mount Carpet Cleaning System	$32,963	$45,060
Small Tools & Equipment	$650	$850
Vehicles	$0	$81,450
Installation Costs	$600	$6,000
Insurance	$600	$7,000
Full-time Service Technician	$6,000	$8,000
Technology System / Computer, Software, Telephone, and Electronic Mail	$800	$4,000
Rent	$0	$5,000
Leasehold Improvements	$0	$5,000
Security Deposits / Utility Deposits	$0	$3,500
Costs Incurred While Attending Training	$1,250	$3,000
Miscellaneous Pre-opening Expenses	$400	$4,000
Additional Funds – 3 months	$2,500	$9,000
ESTIMATED TOTAL	$101,263	$265,110

 
Other Fees

Type of Fee	Amount
Brand Marketing Fee	Up to 3% of gross sales, beginning in month 13 of franchise operation. Brand marketing fee payments are subject to a minimum monthly payment of no less than $150 for the standard territory and $75 for the small territory.
Technology Fee	Actual costs charged by third party vendor, plus up to 15% of the cost for administration. Presently, the technology fee is $450 per month, begins in month 13 of franchise operation.
Renewal Term Fee	Currently, $3,600.
Transfer Fee	Currently, $3,600.
Broker Fee – Resale or Other Transfer	If franchisees authorize the franchisor to enlist a third-party broker to locate a transferee for their business, there will also be a broker fee, which is approximately $30,000.
Additional Training or Hosting Fee	$75 per person, per day, of any training conducted at the franchisor’s headquarters, or the then-current fee, plus all travel, lodging, and meal expenses.
Convention, Regional Meetings and/or Additional Training	$1,000 maximum per person to attend the convention, and (b) $0 - $500 per person per event for regional meetings and/or additional training.
Outstanding Royalties, Support Fees, and Other Fees of Transferor	Will vary under circumstances.
Renovation, Refurbishing, and Remodeling Fees	Actual costs.
Late Report Fee	$50 per week.
Late Payment Fee	$50 per day.
Administrative Fee	Currently, $500 per transaction.
Collection Fee	Up to 35% of gross amounts collected on the franchisee’s behalf.
Non-Sufficient Funds (NSF) Fee	Presently $50 per NSF.
Convention Non-Attendance Fee	Presently $1,000.
Non-Compliance Fee	Presently $5,000 or, for out-of-territory infractions, the greater of $1,000 or 50% of the total invoice for the job, whichever is higher.
Audit	Due only if an inspection is necessary. Cost of inspection or audit estimated at $2,500-$3,500, plus 100% of understated royalty and interest, at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater, and all late fees, from the date originally due until the date of payment; if an understatement of the royalty is greater than 3%, franchisees also must pay an additional penalty fee equal to 10% of the total amount of the understated gross sales.
Insurance	Cost of insurance. If the franchisor fails to maintain the required insurance, the franchisor has the right to procure insurance on their behalf and the franchisee must pay the franchisor, on demand, for the costs and premiums incurred.
Interest Fee	18% per annum or the maximum permitted by law.
Indemnification	Actual costs.
Costs and Attorneys’ Fees	Actual costs.
BFG National Accounts Program Handling & Processing Fee (“NORA Fee”)	Then-current fee per account; presently this fee is up to 15% of gross sales generated by the NORA Account.

The above information has been compiled from the FDD of Chem-Dry. Year of FDD: 2025.
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