Learn the Benefits of Owning Multiple Chem-Dry Franchises
From business-growth planning to warding off competition, there are multiple positives to owning more than one Chem-Dry franchise in a market
Planning ahead is key to business success, and that’s why Chem-Dry franchise owners spend a lot of time and training on business strategies. Everything — from sales and marketing to back-office operations such as payroll and inventory control — gets attention, and that’s also when additional territories are discussed.
Chem-Dry franchise owners, particularly those in large urban areas, often purchase licenses for several territories as they start out, or they add to their territories over time. Why? It’s a good way to grow the business geographically, as well as expand the client roster — and increase revenues. (To make sure that an area isn’t oversaturated, Chem-Dry will only allow one franchise license for every 60,000 people in a territory.)
An affordable method of planned growth
“If someone is buying into an area where there are several territories available, they have the option to take them all,” says Doug Smith, Senior Vice President of Franchise Development. “That may be the case where Chem-Dry doesn’t have a presence in that market, or where there are one or more other owners, but still available territories.”
Doug mentions instances where a new franchise owner has also partnered with other owners in the area, as well as negotiated with them to take over their franchises when they retire or decide to pursue another business.
“It’s about consolidating operations in a market, and growing your business,” he says. “Every Chem-Dry territory is designed to offer a franchise owner plenty of business and income-generating potential, but some want to expand into a larger area and create a bigger business. This gives them that option.”
Multiple territories offer economies of scale
The fiscal cost of owning multiple territories is reasonable, as well. Many of the costs, such as equipment and supplies, are less of a factor when expanding into a second or third area, for example. In addition, franchise fees are discounted for additional territories.
“Once a Chem-Dry franchise owner is up and running with the initial operation, expansion just means more territory that can be covered and served,” Doug says. “There’s no need for additional office infrastructure like phone lines or equipment. And usually while that new territory is being explored and served, the existing equipment is enough to serve clients in the total coverage area. Purchasing adjoining territories is a solid growth strategy because it allows a Chem-Dry franchise owner to use existing marketing strategies, materials and technicians to cover a wider area, grow the client base and increase revenues.”
Chem-Dry is the world’s largest carpet and upholstery cleaning franchise with nearly 3,500 franchises in 52 countries, serving 10,000 homes and businesses a day. Chem-Dry has been Entrepreneur magazine’s top-rated carpet cleaning franchise for 29 straight years. The Chem-Dry Hot Carbonating Extraction process delivers a faster-drying, deeper and more environmentally friendly clean that appeals to both home and business owners. In addition to carpet and area rugs, Chem-Dry provides cleaning of tile and stone, granite countertops, leather and upholstery.