What Are the Advantages of Multiple Territories?
Adding a second territory involves incremental costs that can pay big dividends
Starting a multi-territory Chem-Dry franchise is affordable. In fact, it’s not a lot more expensive than starting with a single territory. That’s because many of the startup costs that go into launching a Chem-Dry franchise are smaller or do not apply when launching a second territory.
Total startup costs for a single Chem-Dry franchise license range from $42,495 to just $155,534, with much of the cost financed by Chem-Dry’s parent company, Harris Research Inc., and third-party vendors. The financing options allow a Chem-Dry owner to start a single territory with as little as $6,000 down.
Starting with two territories can be hugely beneficial, and it is still quite affordable — with less than $15,000 down and total initial startup costs of $58,495 to $158,820. While Chem-Dry charges a franchise fee of $21,500 for the first territory, we discount it to $16,000 for subsequent territories. Many of the costs associated with operating a Chem-Dry business will be the same whether you operate one territory or two. After all, you are unlikely to need more telephone lines, business licenses, insurance, computers or rent. For the first year that you are growing your business, you may not even need a second van — but having multiple territories will allow you to maximize your marketing efforts and grow your business more quickly.
The advantage of having multiple territories
To ensure that Chem-Dry franchisees operating in the same city have plenty of customers, we only allow one franchise license for every 60,000 people in a county. So, in Tennessee’s Davidson County — home to our Nashville office — 13 licenses were available as of 2017 because the population was 789,778.
Newer franchisees are using multiple territories in a different way to quickly grow their businesses — with a goal of eventually achieving similar marketplace dominance. Rather than confining their sales activity in one county, they are purchasing adjoining territories. It’s a strong growth strategy because it maximizes the power of marketing efforts and customer referrals. Our largest and most established franchise owners have become the face of Chem-Dry in entire cities by purchasing all or most of the licenses in their territories.
Word-of-mouth is a powerful tool for growing a carpet cleaning business. When homeowners and business owners find a carpet cleaner that does a great job, they tend to be loyal — and they tell their friends, families and co-workers. Often, those friends and colleagues live in the next county. Without a license to operate in that county, a Chem-Dry franchise owner is left to refer that business to another carpet cleaner. If you have a license, though, all of those referrals are yours.
We call these “spillover leads” — and they are a natural consequence of marketing. If you market your business enough in New York City, you are bound to get some customer interest in New Jersey. The same thing applies for Dallas and Fort Worth, Minneapolis and St. Paul, or any number of cities that are ringed by suburban counties full of commuters. By owning multiple territories, you can not only enjoy the yields from your marketing efforts in your primary territory, but you can also win spillover leads from nearby territories that are full of likely Chem-Dry customers.