Chem-Dry Franchise Cost, Fees & Profit 2024

Are you willing to invest in the Chem-Dry franchise but have qualms about it? Then you are at the right place because the Chem-dry franchise is one of the 10 best franchises to own under $30,000 and under $50,000.

In this article, we will discuss the Chem-Dry Franchise and its profitability, fee, cost, etc., and will tell you whether buying the Chem-Dry franchise is worth it or not. So, let’s begin.

Chem-Dry Franchise

About Chem-Dry 

In 1977, Chem-Dry was founded in California by Robert Harris. He started Chem-Dry with the mission of helping people to live healthy life, which starts with clean carpets and a healthy home.

They devised a better way to clean it and keep it clean. Moreover, they used a patent method of Hot Carbonating Extraction to attack dirt, dust, and allergens in carpets. And also, their carpet dries more quickly and stays clean and healthy for a longer time.

Additionally, they also provide some other cleaning services, including cleaning commercial and residential air ducts, wood floors, odor cleaning, and so on. It is also environmental-friendly and green-certified.

After one year of Chem-dry, they started offering franchises, and now it has more than 3489 units across the U.S. Moreover, the policies of franchises are very flexible, as they never require prior experience in any field from you.

Additionally, they provide initial training programs and support to franchises to enhance business growth and also offers third-party financing as well as veteran discount. 

Chem-Dry Franchise Model

Cost or FeeAmount or Percentage
Initial Investment$69,145 – $204,714
Area RequirementN/A
Total Outlets3489

Training Of Chem-Dry Franchise

Chem-Dry provides an initial training program to all new franchises. The duration of the training program is three-week in which two phases are included.

The first phase consists of two weeks of at-home study, and the second phase consists of one week in the classroom and hands-on training.

The training program is held at the HRI headquarters in Logan, Utah, or any other location designated by the franchisor.

It is compulsory for a franchise to attend the initial training program before opening the Chem-Dry business for the satisfaction of the franchisees. 

Chem-Dry Franchise Revenue & Profit

Chem-Dry Franchise Revenue & Profit

According to the performance of 723 franchises in 2021, a Chem-Dry franchise owner makes $327,006 in revenue in a year on average.

If we assume a profit margin of 15% as per the average industry standard, then we can say that a Chem-Dry franchise owner makes $49,050 in profits per year on average.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%327006.00
Franchise Royalty Fees5.31%(17372.19)
Cost of Goods Sold (COGS)26.56%(86860.97)
Labor (Variable)13.81%(45167.70)
Total (Expenses)85.00%(277955.10)
Net Profit15.00%49050.90

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Failure Rate Of Chem-Dry

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the failure rate was (169)/2000×100≈8.45%
  • In 2021, the failure rate was (79)/1831×100≈4.31%
  • In 2022, the failure rate was (315)/1752×100≈17.98%

According to the above-mentioned data, we can see that the franchised outlets for Chem-Dry rapidly declined from 2020 to 2022, showing a failure rate between 8.45% and 17.98%.

Overall, the Chem-Dry franchise has declined in the years 2020-2022, showing a total failure rate between 8.45% and 17.98%.

Chem Dry Payback Period

The midpoint investment of Chem Dry is $136,929, and the yearly profit is $49,050. So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $136,929 / $45,050= 3.3 years

Based on these figures, it will take approximately 3-4 years to pay back the initial investment for Chem Dry franchise. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Term & Renewal Of Agreement 

The initial length of the Chem-Dry franchise agreement is five years. After completing the initial term, the franchisees have the option to renew the term upon expiration of the initial term.

However, the renewal of the term is only possible if they meet certain qualifications required by the franchisors. The length of the renewal agreement is 5 years.

Financial Assistance

Chem-Dry provides a financing option to all franchisees. They may finance through the business not up to 40% of the initial franchise fee with credit standing acceptable to HRI.

The cleaning franchise market offers several opportunities for entrepreneurs, such as franchises from Vanguard Cleaning SystemOpenWorksServproDuctz Franchise, and Stanley Steemer.

Advantage Of Chem-Dry Franchise

  • Provide training and Support system
  • Veteran discount and financing options are available 
  • The customer retention rate is more than 96%
  • Highly profitable

Chem-Dry Franchise Comparison

Founded In19771991
Initial Investment$69,145 – $204,714$50,000-$150,000
Total Outlet348910,475
Annual Revenue$25 million$587 million 

Frequently Asked Question

How many Chem-Dry franchises are there?

Chem-Dry has more than 3489 units across the U.S.

How much does it cost to own the Chem-Dry franchise?

Opening a Chem-Dry franchise requires a franchise fee of up to $23,500, and an initial investment required to open a Chem-Dry Franchise is $69,145 – $204,714.

Does the Chem-Dry franchise offer finance?

Yes, the Chem-Dry franchisee offers third-party finance.

Where is Chem-Dry headquarters?

The headquarters of Chem-Dry is located in Logan, Utah.

Is Chem-Dry a franchise?

Yes, Chem-Dry is the world’s largest carpet cleaning franchise and one of the most economical, multi-unit franchise opportunities for entrepreneurs.

Who owns Chem-Dry?

Chem-Dry is the world’s largest cleaning franchise. It is currently part of the BELFOR Franchise Group.

Who founded Chem-Dry?

Chem-Dry was founded in the year 1977 by Robert Harris.

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