Chem-Dry Franchise Costs, Fees & FDD

Year Business Began: 1977

Franchising Since: 1978

Headquarters: Ann Arbor, Michigan

Estimated Number of Units: 1,560

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. The franchisor developed and manufactures the cleaning solutions sold to and used by Chem-Dry businesses, including CDI's patented carbonating cleaning system.
Training Overview: The franchisee and one other person must successfully complete the New Buyer Training program on the operation of a Chem-Dry business and before the opening of the business. The New Buyer Training / Initial Training Program consists of two virtual days followed by five in-person days, totaling 27 hours classroom and 17 hours on-the-job. Initial training takes place at CDI headquarters in Ann Arbor, Michigan or another location designated by the franchisor. 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 territory. The franchisee will not receive an exclusive territory and may face competition from other franchisees, from outlets that the franchisor or an affiliate owns, or from other channels of distribution or competitive brands that the franchisor or an affiliate controls. The number of franchises that can operate as Chem-Dry businesses in a franchised area is determined by dividing the current population of the area by 60,000. The franchisor determines the franchised area based on population, population density, geographical terrain, and market potential. A territory will have at least 60,000 households. Franchisees must operate from a single location within the franchised area. Franchisee may not advertise, solicit, accept, or perform approved services outside the franchised area.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. The franchisor recommends that franchisees actively participate in the operation of the Chem-Dry business, but does not require it. Franchisees remain responsible for the successful operation of and directly responsible to the franchisor for the business whether or not they participate in day-to-day operations. If the franchisee uses an operator to run the business, the operator must be disclosed to the franchisor and must successfully complete CDI's new buyer training and other training programs within 90 days of the start of employment; the franchisee itself remains obligated to complete new buyer training within 90 days after signing the Franchise Agreement. The operator need not have an ownership interest but must sign an agreement not to divulge trade secrets or confidential or proprietary information and not to engage in or hold any interest in a competitive business. 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 5 years. One additional, consecutive term of 5 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 License Fee	$23,500	$23,500
Initial Package Fee	$44,000	$78,000
Optional Additional Equipment	$0	$16,845
Vehicles	$0	$81,450
Installation Costs	$600	$6,000
Three Months' Rent	$0	$5,000
Technology System/Computer, Software, Telephone, and Electronic Mail	$800	$4,000
Training and Convention Attendance Expenses	$1,250	$3,000
Insurance	$600	$7,000
Security Deposits/Utility Deposits	$0	$3,500
Miscellaneous Pre-Opening Expenses	$550	$4,000
Additional Funds – 3 months	$2,500	$9,000
Computer System	$800	$2,000
Advertising - 3 months (in addition to BMF contribution)	$3,000	$5,000
ESTIMATED TOTAL	$77,600	$248,295

Other Fees

Type of Fee	Amount
Monthly Franchise Fee	The then-current fee, presently $491.40 per month.
Yearly Minimum Purchase Amount	The then-current fee, presently $3,422 per year, subject to increase.
Brand Marketing Fee	The then-current fee, presently $160.
Initial Monthly Marketing Spend	$1,000 per month for four months, then a minimum of $2,000 per month, including $1,000 per month for digital marketing for eight months; expended monthly beginning the month after New Buyer Training and continuing for 12 months.
Customer Service Management Software ("CRM") Fee	The then-current fee, presently $349 per month.
Renewal Fee	Currently, $3,600.
Transfer Fee	Currently, $1,500 to $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 or 10% of the sales price.
Credit Card Processing Fee	Will vary.
BFG National Accounts Program Handling & Processing Fee	None currently.
Web Domain Fee	The then-current fee, presently $125 or actual purchase price depending on availability, per domain for a five-year term.
Training Fee	The then-current fee, presently $175 - $500, not including lodging, food or travel expenses
Initial Training Fee – for additional attendees and transferees	The then-current fee, presently $100 per day per attendee, not including lodging, food or travel expenses
Convention Fee	The then-current fee, presently $850 per person.
Month-to-Month Post-Term Franchise Fee	Two times the then-current monthly franchise fee;.
Administrative Fee	The then-current fee, presently $500 per transaction.
Fine for Improper Advertising	The then-current fee, presently $2,000 per violation.
Fine for use and/or possession of non-Chem-Dry Products	$5,000 per violation.
Fine for unapproved cleaning systems or equipment	The then-current fee, presently $5,000 per violation.
Fine for offering services that are not Approved Services	The then-current fee, presently $5,000 per violation.
Fine for accepting or performing a job outside of the designated franchised area	The then-current fee, presently $5,000 per violation.
Fine for failed Quality Control evaluation	Will vary.
Fine for Failure to Comply with Annual Training Requirement	The then-current fee, presently $2,500 per year.
Fine for Failure to Comply with National Convention Attendance Requirement	The then-current fee, presently $2,500 per incident.
Customer Complaint Resolution	Actual costs.
Audit	Due only if an inspection is necessary. Cost of inspection or audit estimated at $2,500-$6,000, 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.
Late Payment Fee	The then-current fee, currently the greater of 5% of the amount due or $50 per week.
Non-Sufficient Funds (NSF) Fee	Presently $50 per NSF.
Enforcement Costs and Attorneys’ Fees	Actual costs.
Indemnification	Actual costs.
Liquidated Damages	Actual costs.
Franchise Advanced Website	The then-current fee, presently $25 - $100 monthly per site depending on selected upgrades.

The above information has been compiled from the FDD of Chem-Dry. Year of FDD: 2026.
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