Chem-Dry Franchise
Cost, fees, owner earnings, closure rate and litigation for a Chem-Dry franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Chem-Dry discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Projects $218,400 annual revenue for standard territory (3 jobs/day, 4 days/week, $350/job). Based on 20+ year franchisee averages; no earnings claim for net income.
What a Chem-Dry franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $36,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $99,645 – $240,995 | Item 7 — franchisor's own low/high estimate |
Tiered royalty 4-7%; $450/mo technology; $3,600 renewal; extensive ancillary fees including $5,000 non-compliance penalties.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Chem-Dry system size and owner turnover
| Total outlets | 1,099 |
| Ceased operations | 4 |
| Terminated by franchisor | 101 |
| Transferred to new owners | 29 |
| Closure rate | 0.4% of outlets |
593 net outlets lost 2022-2024 (35%). 101 terminations, 94 non-renewals in 2024.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Chem-Dry worth it? — how it compares to 47 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $99,645 | about average (median $97,240) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.4% of outlets | better than most (median 2.4%) |
| Disclosed lawsuits | 2 | more litigious than 70% of peers |
Benchmarked against every cleaning services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Chem-Dry
The franchisor's framing: Projects $218,400 annual revenue for standard territory (3 jobs/day, 4 days/week, $350/job… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Chem-Dry franchise — frequently asked
- How much does a Chem-Dry franchise cost?
- The FDD lists a total initial investment of about $99,645–$240,995, including a $36,000 initial franchise fee.
- How much do Chem-Dry franchise owners make?
- Projects $218,400 annual revenue for standard territory (3 jobs/day, 4 days/week, $350/job). Based on 20+ year franchisee averages; no earnings claim for net income. We grade this disclosure D for honesty.
- What are the Chem-Dry franchise fees?
- Chem-Dry's FDD discloses a $36,000 initial franchise fee, a 5.5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. Tiered royalty 4-7%; $450/mo technology; $3,600 renewal; extensive ancillary fees including $5,000 non-compliance penalties.
- What is the Chem-Dry franchise profit margin?
- Chem-Dry does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Projects $218,400 annual revenue for standard territory (3 jobs/day, 4 days/week, $350/job). Based on 20+ year franchisee averages; no earnings claim for net income. Recurring fees alone take about 8.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Chem-Dry franchise failure rate?
- 593 net outlets lost 2022-2024 (35%). 101 terminations, 94 non-renewals in 2024.
- How many Chem-Dry locations are there?
- Chem-Dry's FDD reports 1,099 total outlets, with 4 that ceased operations in the most recent reporting year and 29 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Chem-Dry have complaints or lawsuits?
- Chem-Dry discloses 2 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Chem-Dry franchise worth it?
- It depends on the numbers, not the pitch. Chem-Dry scores D on disclosure honesty, carries about 8.5% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
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Compare Chem-Dry to similar franchises
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Source: MN CARDS 33448-202504-10 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Chem-Dry or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.