Multiple Revenue Streams Drive Chem-Dry Carpet Cleaning Franchise Sales for Owners
Multiple services make franchising with the world’s largest carpet cleaner a potentially lucrative business
Every year, Chem-Dry franchises clean about 1 billion square feet of carpet. We have about twice the market share of our nearest competitor in the industry, and we have 3,500 franchises worldwide that clean 10,000 homes a day.
What you might not know about the Chem-Dry business model is that our carpet cleaning franchise owners clean far more than just carpets. Thanks to our size, many customers already know and trust Chem-Dry, which makes it easier for new franchisees to increase their profitability by offering additional services, such as cleaning tile and stone, curtains, drapes and upholstery and by taking on commercial cleaning jobs.
Just how potentially lucrative is the Chem-Dry business model? In 2014, Chem-Dry surveyed 216 franchise owners and found that the average annual revenue per franchise owner was $272,782. Of those owners, 67 franchisees met or exceeded this average. While the average job was worth $254, the average annual revenue per franchise was $95,955, and 95 owners met or exceeded that average.
Increase your profitability by cleaning more than carpets
Master franchisee Alan Cox decided to franchise with us in his home country of Trinidad and Tobago — where carpeted floors aren’t often found in offices and private residences. Why? The Chem-Dry cleaning process is proven to be effective in cleaning far more than carpets.
“One of the biggest challenges for us is that we do not have carpets, and Chem-Dry is very much known for its strength in cleaning carpets,” Alan says. “We see opportunities beyond that, though. We see the ability for the cleaning of sofas and rugs and drapes, and the floors in all the houses that have tile and other hard flooring surfaces. Things do need to be cleaned professionally, and we’re confident that Chem-Dry’s products will lead the way in all of those areas, not just carpets. We have some exciting plans together, and Chem-Dry has been very open-minded in our suggestions on how to penetrate the commercial market here.”
Chem-Dry corporate team helps franchisees win commercial cleaning contracts
Our well-known name also works to our benefit when our owners pursue commercial cleaning opportunities. And the owners are not doing it alone. Chem-Dry has a corporate team that actively seeks to win business from the large players in the office, hotel, retail and hospital markets — which we then hand off to our franchisees to work.
“Our carpet cleaning franchise owners are really taking advantage of the commercial cleaning opportunities,” says Ed Quinlan, Vice President of Franchise Services with Chem-Dry. “Right now, 20 percent of profits for the average franchisee comes from cleaning commercial flooring, but the more established franchisee can bring in 80 percent of their profits from cleaning commercial flooring. Many of our franchisees have day crews that work the residential jobs during the 9-to-5 workday, and night crews that use the same equipment to clean hotel, retail, hospital and office spaces.
“Right now, we have contracts with about 80 companies across the nation, including high-end companies such as Tiffany’s,” Ed continues. “The corporate staff wins the business, and our franchisees benefit immensely from the relationships we develop and maintain. Once a client is educated in the quality of our services, it is very easy to help them understand the benefits of hiring us.”
Carpet cleaning franchise owners make additional revenue by cleaning tile & stone
Nearly 250 franchisees offer tile and stone cleaning, and on average the work boosts revenue and profit about 10%. The work also gives Chem-Dry’s brand a further boost by showing homeowners that we can clean a lot more than carpet. Many homeowners turn to other companies for tile and stone cleaning and wind up disappointed with the results. When a Chem-Dry franchise owner is in a home for a carpet cleaning job, they can demonstrate the dramatic cleaning power we offer — and that leads to jobs that pay much more per square foot than carpet cleaning. Tile and stone cleaning pays between $1 and $1.75 a square foot.
“We saw an opportunity to serve a lot more customers by offering tile and stone cleaning, grout cleaning, and by marketing those services,” says Larry Boger, a multi-unit carpet cleaning franchise owner. “It’s nice for Chem-Dry owners that they can often do well just by serving their repeat customers who’ve been using them for years.”