24 Jun Franchise Business Plan – Chem-Dry
Chem-Dry Inc. (Chem-Dry) was founded in 1977 by Robert Harris who created a patented nontoxic carbonated cleaning solution that the company still uses today. Chem-Dry has grown rapidly since its inception. In 2017, the company had more than 2,000 U.S. locations and over 3,600 locations worldwide, making it the largest carpet cleaning franchise chain in the world. Chem-Dry operates through a network of affiliated franchises. Over the past five years, revenue from the company’s franchises increased at an annualized rate of 2.6% to $198.1 million.
Although franchisees are not obligated to participate personally in the direct operation of a Chem-Dry business, the franchisor recommends that they do so. Generally, franchisees are responsible for the successful operation of the Chem-Dry business and are directly responsible to the franchisor under the franchise agreement whether or not they participate in day-to-day operations. In addition to training their employees, all franchisees must complete the initial Chem-Dry business operations training themselves. The training includes two weeks of at home study and one week of classroom/hands-on training. The training is held at the corporate headquarters in Logan, Utah, or a different location chosen by the franchisor. Joorney Business Plan has extensive experience describing and creating employee long-term plans and connecting the proposed individuals’ skills and training to their assigned roles.
All franchises must operate within the non-exclusive franchised area defined in the franchise agreement. The number of franchises which can operate Chem-Dry businesses per franchised area at any given time is determined by dividing the current population of the area by 60,000. All franchisees need to operate and conduct their businesses from a single location within the franchised area from which they can operate as many crews, teams, sales forces, and vans as they want to. Joorney Business Plans writers have experience in developing detailed local market and competition analyses for Chem-Dry franchises.
With approved credit, Chem-Dry may finance the initial license fee portion of the initial fee for qualified prospective franchisees under specified terms and conditions. The franchisor also offers indirect financing on new business sets or van packages to its franchisees through Aztec Financial, LLC (a non-affiliated equipment finance company). The initial investment for establishing a Chem-Dry business ranges from $67,645 to $178,907. Chem-Dry is also a member of the International Franchise Association and participates in the IFA’s VetFran Program, which offers veterans and first responders a 10% discount on the initial license fee, thus opening the possibility of franchise ownership for veterans who might not be able to afford it otherwise. Joorney Business Plans has extensive experience in developing long-term financial projections for Chem-Dry franchises and understands the specifics related to the initial investment requirements.
Chem-Dry helps franchisees grow a profitable business through various marketing strategies. The company’s marketing experts have a deep understanding of how to leverage the Internet and social media as a marketing tool. All franchisees have an SEO-optimized custom website and are trained on how to use it. The franchisor assists with live web chat service, Google Ads, Pay Per Click advertising campaigns, directory optimization, automated online review services, and loyalty marketing tools. Chem-Dry also provides traditional marketing tools such as business cards, stickers, brochures, door hangers, envelopes, calendars, and email blasts. In addition, the franchisor provides access to its customer relationship management tool, OnTrack, a web-based program used for billing and scheduling customers, managing invoices and accounting software, and gauging customer satisfaction. Joorney Business Plans writers assist clients in writing marketing strategies and developing appropriate marketing budgets.
Chem-Dry differentiates itself by providing an eco-friendly cleaning service to both residential and commercial clients. With the size of the carpet cleaning industry and Chem-Dry’s growing market share, the company is always looking for ways to expand revenue sources and increase revenue for franchisees. Chem-Dry allows franchisees to run a top-performing business that meets or exceeds their financial goals.