Low-risk, high-ROI, service-based franchise opportunities are in high demand, and Chem-Dry is one of the best low-risk, high-return investments out there. Smart entrepreneurs are locking down available Chem-Dry territories to secure their careers and financial futures.
A Chem-Dry franchise owner’s initial investment ranges from $38,500 to $131,500, depending on the equipment and van the owner chooses. A franchise owner will also have to think about covering living expenses as they are starting the business, which are not reflected in the above figures. And regardless of the size of your investment or equipment package you choose, your monthly royalty is constant and affordable, $350.
The Chem-Dry investment model results in a franchise with tremendous scalability and earning potential. Entrepreneurs with more capital can spend more for multiple licenses and lock down territories. It all depends on each individual’s financial situation and level of ambition.
Chem-Dry offers low-cost, in-house financing, and the loan is interest- and payment-free until the fourth month of operation. Cash is crucial in the first few months of any new business, and we want our new franchisees to have the first few months to reinvest in their business. Our interest rate is just 6.5 percent simple interest, and by starting the debt service in the fourth month, we allow for investment in marketing, or training, or any other business-building efforts. This type of financing is unmatched in the franchise industry, and just another way that we invest in the success of our franchisees.
This chart details our financing terms by equipment package. Most new franchisees start their business with the portable option and grow with truck mounted units.
|Equipment Option||Equipment||Initial License Fee||New Business Set||Total Investment||Down Payment||Balance Financed||Monthly Payment|
|XTS Truck Mount||$5,300||$19,500||$17,600||$42,400||$10,995||$31,405||$651.66|
Chem-Dry Franchise Startup Costs
Four components make up the investment and start-up costs of a Chem-Dry franchise business. Chem-Dry helps finance three of these: the initial license fee, turn-key new business set and the equipment package. These are considered “hard costs” of the franchise investment and vary based on the equipment a new owner chooses.
|Initial Hard Cost Investment|
|(1) Initial License Fee||$19,500||The right to use certain trademark, service marks and other commercial symbols, as well as the right to use the intellectual property in operation of your Chem-Dry business|
|(2) TurnKey New Business Setup||$15,500-$17,600||Initial Cleaning Solution, Equipment Package, and Advertising Materials consisting of one Powerhead (hot carbonating extraction head) and pad driver, vacuum, contact management software, training and marketing materials, start-up package of cleaning solutions, spot removal products, and van decals.|
|(3) New Equipment Package||A||$3,500||Portable Power Base Unit|
|B||$17,500||CTS 330 Truck Mount System|
|C||$24,500||CTS 450 Truck Mount System|
|D||$2,000||XTS Satellite Unit|
|E||$5,300||XTS Truck Mount System|
|F||$7,300||XTS Truck Mount and Satellite System|
|Total Hard Cost Investment|
As shown above, hard cost of the Chem-Dry investment range from $38,500 to $59,500. The initial license fee and Turnkey New Business Setup are fixed at $15,000 and $17,600 respectively. The cost of the New Business Set varies depending on which package a new franchisee starts the business with.
The fourth component is essentially working capital to cover other hard and soft costs related to the start up that aren’t financed by Chem-Dry. These costs are variable and depend on the setup of each individual business. The general range for these costs are between $8,300 and $68,000, plus owner living expenses.
|Estimated Soft Costs of Chem-Dry Investment|
|Expenditures||Estimated Amount or Estimated Low-High Range|
|Van (2)||$0 – $35,000|
|Telephone and Business License||$400 – $4,000|
|Training Expenses||$1,000 – $2,000|
|Insurance||$600 – $6,000|
|Additional Funds – 3 months||$2,500 – $9,000|
|Computer System||$800 – $2,000|
|Advertising – 3 months||$3,000 – $10,000|
|Owner Living Expenses||Variable|