What Are the Startup Costs?
Multi-unit franchise owners enjoy lower costs when adding additional territories
The Chem-Dry investment model results in a franchise with tremendous scalability and earning potential. The tables below outline the costs of opening a Chem-Dry franchise with a single franchise license, but entrepreneurs who are eager to grow quickly can spend a little more for multiple licenses and lock down territories.
Not all of the costs outlined below will be incurred when you add territories. For instance, if you choose to rent a facility from which to operate your business, you won’t need to rent a second facility in order to serve two territories; you won’t need two phone lines or an extra computer. You will need to account for additional advertising, and we recommend setting aside additional funds. That’s why, while startup costs for a single Chem-Dry territory start at $56,495, startup costs for two territories start at just $74,495.
You don’t need to come up with all that money up front, either. In fact, we’d prefer that franchisees conserve some cash to bolster their marketing efforts and speed the process of winning customers. To make that easier, Chem-Dry offers in-house financing for the franchise fee. The initial franchise fee is $23,500, and we may finance $17,500 of the fee; the fee for additional territories is $18,000, and we may finance $15,000 of the fee. The loan for the initial franchise fee is interest- and payment-free until the fourth month of operation, and the loan for additional franchise fees typically start at staggered times several months out.
This type of financing is unmatched in the franchise industry, and it’s just another way that we invest in the success of our franchisees.
This chart details our financing terms by equipment package:
|Option||New Business Set*||Initial License Fee||Total Investment||License Fee Down Payment||License Fee Balance Financed|
|Executive Portable Package||$32,995||$23,500||$56,495||$6,000||$17,500|
|Executive Truck Mount Package||$51,495||$23,500||$74,995||$6,000||$17,500|
|Executive Direct Drive Truck Mount Package||$57,495||$23,500||$80,995||$6,000||$17,500|
*New Business Set is financed by 3rd Party. Down payment and monthly payment will vary.
Chem-Dry Franchise Cost
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.
|Estimated Costs of Chem-Dry Investment|
|Expenditures||Estimated Amount or Estimated Low-High Range|
|Initial License Fee||$6,000-$23,500|
|New Business Set||$0-$57,495|
|Additional Equipment Purchases||$0 - $8,462|
|Three Month’s Rent||$0-$4,000|
|Telephone and Business License||$400-$4,000|
|Training and Convention Attendance Expenses||$1,250-$3,000|
|Additional Funds-3 Months||$2,500-$9,000|
|Owner Living Expenses||Variable|
|Total Estimated Initial Investment||$13,550 - $162,457|
Cleaning Franchise Cost: The Variables
As shown above, hard cost of the Chem-Dry investment range from $56,495 – $80,495. The initial license fee is fixed at $23,500. The cost of the New Business Set varies depending on which package a new franchisee starts the business with and range from $32,995 to $56,995.
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 $10,300 and $73,000, plus owner living expenses.
|Initial Hard Costs|
|(1) Initial License Fee||$23,500||The right to use certain trademark, service marks and other commercial symbols, as well as the right to offer the authorized services, proprietary equipment and cleaning processes in your Chem-Dry business|
|(2) New Equipment Package - Choose one|
|$32,995||Executive Portable Package|
|$51,495||Executive Truck Mount Package|
|$57,495||Executive Direct Drive Truck Mount Package|
|Total Hard Cost Investment (Includes License Fee and Equipment Package)|
|$56,495||Executive Portable Package|
|$74,995||Executive Truck Mount Package|
|$80,995||Executive Direct Drive Truck Mount Package|