In 2023, how many Chem Dry franchises in Alabama were terminated?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Termi nations | Non Renewals | Re acquired by Franchisor | Ceased Operations Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2021 | 32 | 0 | 1 | 0 | 0 | 0 | 31 |
| 2022 | 31 | 0 | 4 | 0 | 0 | 0 | 27 | |
| 2023 | 27 | 1 | 4 | 1 | 0 | 0 | 23 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION TABLE 1 SYSTEMWIDE OUTLET SUMMARY FOR YEARS – 2021 – 2023 (FDD pages 59–68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, there were 4 terminations of Chem Dry franchises in Alabama during 2023. The Systemwide Outlet Summary table provides a breakdown of outlet activity by state and year, including terminations, non-renewals, and other reasons for ceased operations. This information is crucial for potential franchisees to assess the stability and performance of Chem Dry franchises in specific geographic areas.
Specifically, the table details the number of outlets at the start of the year, the number of outlets opened during the year, the number of terminations, non-renewals, and reacquisitions by the franchisor, outlets that ceased operations for other reasons, and the number of outlets at the end of the year. For Alabama in 2023, there were 27 outlets at the start of the year, 1 outlet opened, and 4 terminations, resulting in 23 outlets at the end of the year. One franchise was not renewed in 2023.
This data helps prospective Chem Dry franchisees understand the dynamics of the franchise network, including the rate of franchise terminations and non-renewals. High termination rates could indicate underlying issues with the franchise system, such as lack of support from the franchisor, poor unit economics, or disputes between the franchisor and franchisees. Therefore, carefully analyzing these trends is an important part of the due diligence process before investing in a Chem Dry franchise.