Chem-Dry Franchise Analysis 2026

Investment & Fee Data

Investment Overview

Franchise Fee$20K

Total Investment$100K – $350K

Royalty Rate6.0%

Ad/Marketing Fund1.0%

Total Fee Burden7.0%

System Size & Growth

US Locations1,800

Unit Growth Rate+0.2%

Founded1977

Franchising Since1978

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$400K

Owner Earnings$40K

SBA Default Rate5.8%

5-Year Survival89%

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💡 What This Means For You

The combined fee burden of 7.0% is within the industry average of 8-10%. Beyond the listed investment, expect approximately $69K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $294K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$400K

Net Profit Margin14%

Est. Owner Earnings$40K

Breakeven18-24 months

Payback Period4-6 years

Capital Requirements & Operations

Liquid Capital Required$40K

Net Worth Required$100K

Staff Required2-4

Training3 weeks

TerritoryProtected territory

Multi-Unit RequiredNo

Term Length5 years

Risk & SBA Safety Data

SBA Default Rate5.8%

5-Year Survival89%

Renewal Fee$1,500

Transfer Fee$3,000

💡 Financial Analysis

A revenue-to-investment ratio of 1.8x is solid and in line with industry norms. At estimated owner earnings of $40K/year, the simple payback period is approximately 5.6 years.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$30K

Legal & Accounting$10K

Insurance (Annual)$15K

Tech/Software (Monthly)$600/mo

Lease Deposit Est.$5K

Grand Opening$8K

Total Hidden Costs$69K

👤 Owner Reality Check

Hours Per Week40-55

Absentee Owner Friendly?No ✗

Manager-Run Possible?No ✗

Seasonal VariationLow

Labor Cost (% of Revenue)45%

Owner-operator or manager-run. 40-55 hours/week managing crews and customer service. Hands-on initial years recommended.

📊 Franchisee Health

Satisfaction Score68/100 (Fair)

Annual Turnover Rate6.5%

Litigation Count (Item 3)3 cases

5-Year Closure Rate7%

Avg Franchisee Tenure5 years

Franchisee AssociationYes ✓

🚪 Exit Strategy & Resale

Resale Value Multiple1.5-2.2xx earnings

Transfer RestrictionsFranchisor approval required

Non-Compete Period2 years

Non-Compete Radius5 miles

Avg Time to Sell9-15 months

Exit DifficultyDifficult

📋 FDD Transparency Report

Item 19 QualityModerate

Item 19 Includes:

✓ Revenue estimate

✓ Operating costs

Territory ProtectionModerate

Territory assigned

Required Suppliers?Yes

Supplier Markup RiskLow

Renewal Terms5-year renewable

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

0.2% unit growth5.8% SBA defaultCommodity market

✅ Positive Signals:

$400K AUV14% margins1,800 unit base

💡 Due Diligence Verdict

Only 3 litigation cases in the FDD is a positive sign of a healthy franchisor-franchisee relationship. Exiting this franchise is rated as difficult. Plan your exit strategy before you buy — not when you're ready to leave.

AI Disruption Risk Assessment

🤖

AI Risk Analysis

See how AI will impact Chem-Dry over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.54

Units per 100K pop.

0.11x

Saturation Index

vs. Cleaning (Commercial) avg (5.06/100K)

States with Presence

Low Saturation

Chem-Dry has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Wyoming	33	581,000	5.68
Alaska	41	733,000	5.59
Washington DC	37	671,000	5.51
Vermont	34	645,000	5.27
South Dakota	38	887,000	4.28

Least Saturated States

State	Units	Population	Per 100K
California	35	39,029,000	0.09
Texas	44	30,503,000	0.14
New York	31	18,777,000	0.17
Florida	49	23,555,000	0.21
North Carolina	32	10,849,000	0.29

Growth Opportunity States

High-population states where Chem-Dry has minimal or no presence — potential expansion territories.

Iowa New Mexico Hawaii

Investment Thesis

Chem-Dry carries a CAUTION signal with a FutureScore of 56/100. A mature carpet cleaning franchise with stagnant growth. $400K AUV, 14% margins, and 5.8% SBA default respectable but 0.2% growth signals saturation. Steady income, not growth.

Ideal Investor Profile: Local carpet cleaning operator

Strengths

1,800+ unit established baseSpecialized carpet cleaning (niche)Recurring customer base7% combined fees reasonable

Risk Factors

Stagnant 0.2% growth5.8% SBA default (moderate-high)Commodity carpet cleaning marketLow $400K AUV limits profit

Chem-Dry

What is Chem-Dry?