How is 'Average Revenue per Franchise' calculated for Chem Dry franchises?

According to Chem Dry's 2024 Franchise Disclosure Document, 'Average Revenue per Franchise' is calculated by dividing the total annual revenue reported by the Responding Franchise Owners by the total number of Responding Franchises. The financial performance representation is based on data from 246 franchise owners who collectively own 706 Chem-Dry franchises and who have operated their businesses for at least one year as of January 1, 2023, and throughout 2023. These owners use Chem Dry's Customer Management Software, which has been mandatory for new franchisees since 2013. Data from franchisees earning less than $75,000 per year was removed to accurately compare existing franchised businesses to the franchise being offered.

It's important to note that these figures have not been audited by Chem Dry or independently verified, and no certified public accountant has expressed an opinion on them. A number of factors can impact a franchise owner's revenue, including their operational capability, pricing decisions, market competition, and ability to sell ancillary products and higher-margin services. Therefore, a new franchisee's results may differ from those presented in the Item 19 financial performance representation.

The Item 19 data includes financial information self-reported by franchisees using Chem Dry's Customer Management Software. While Chem Dry believes this data represents a sample of all Chem-Dry franchise owners, prospective franchisees should be aware that these figures are averages and medians. Individual performance can vary significantly based on factors like location, management skills, and local market conditions. Chem Dry will provide written substantiation for the data used to prepare this financial performance representation upon reasonable request.