Bill Knight: Chem-Dry franchise carpet cleaners succeed at 87% rate after 5 years
In May, the franchise consultant network FranNet released the results of a survey that validated something franchisors have known for decades: Franchise businesses succeed more often and for longer than typical small businesses.
You probably won’t be surprised to learn that Chem-Dry franchise owners succeed more often than most franchisees.
FranNet’s survey indicates that 91 percent of business owners who started the process with one of the network’s consultants remained in business after two years, and 85 percent were still in business after five. That’s an astounding success rate, especially compared to U.S. Census Bureau numbers for new business success rates: 64 percent survival after two years, 50 percent after five.
“That’s not surprising at all,” says Bill Knight, our vice president of franchise development. “The power of franchising has been proven over and over again, over decades.”
Chem-Dry’s success rate is right up there; 87 percent of Chem-Dry franchises are still in business after five years. That’s an impressive figure considering how large and far-flung Chem-Dry’s franchise base is. It’s tough to manage and maintain a successful franchise system with that many franchisees — but our owners still build good businesses nearly 90 percent of the time.
Why do Chem-Dry franchise owners succeed at such a high rate? It’s a combination of factors:
Low cost. You can start a Chem-Dry franchise with as little as $9,995 down and $34,000 overall, an incredibly low initial investment.
In-house financing. Chem-Dry, unlike most franchise systems, offers in-house financing at reasonable rates, a lifesaver for entrepreneurs still having trouble securing small business loans from nervous banks.
Great equipment and patented, world-class products. Our cleaning tools and solutions have been honed over 35 years to make homes and offices drier, cleaner and healthier, and demand for our services remains strong even in economic downturns.
Scalability and flexibility. You can stay as small or get as big as you want. Some of our franchise owners run one van; some run 20. It’s up to you, just like your schedule — one of the great advantages of a Chem-Dry franchise is the freedom it gives businesspeople who might not be used to taking a couple of hours off in the afternoon to catch their children’s soccer games. And you should know that our average annual franchise owner revenue surpasses a quarter-million.
Unmatched support. When you fail, we fail. That’s why we supply a number of key services at no cost in your first year to help you get off to a successful start. We have a Quick Start coach, Charlie Erickson, whose sole job is to make sure you meet your first-year goals. After that, you still have a great operations and marketing support team and a worldwide network of fellow franchise owners to depend on for information, tips and proven methods.
“If they can survive that first year, they typically do very well,” Bill Knight says. “It’s great that FranNet took the time and energy to compile these data and that we finally have a benchmark to measure ourselves against, especially since we stack up with just about anybody.”
If you’re an entrepreneur looking for a low-cost, high-return business that lasts, download our free franchise information report, which contains details about our company, products, services, market demand and more.