What does 'Average Years Operating' represent for Chem Dry franchises?

According to Chem-Dry's 2024 Franchise Disclosure Document, the term 'Average Years Operating' reflects the average length of time, in years, that the Responding Franchise Owners have been operating their Chem-Dry business. This metric is based on data from a group of franchisees who use Chem-Dry's Customer Management Software and whose financial information was reported for the year 2023. The FDD also includes 'Median Years Operating,' which represents the median length of time in years that the Responding Franchise Owners have been operating their Chem-Dry business.

Chem-Dry emphasizes that the Responding Franchises have operated for long periods, with some exceeding 18 years. These established franchises report building a customer base over time, leading to a recurring revenue stream. However, the FDD cautions prospective franchisees that a new Chem-Dry business will not start with this established customer base and should anticipate lower initial revenues. The performance of these long-term franchises may not be indicative of what a new franchisee can expect.

The FDD also notes that the Chem-Dry brand is well-established in many markets where the Responding Franchises operate, benefiting from long-term advertising and brand awareness. New franchisees in less developed markets for Chem-Dry may not experience the same advantages from an established brand identity or historical marketing efforts, potentially resulting in lower revenues compared to those reported by Responding Franchise Owners in established markets. Therefore, the 'Average Years Operating' and 'Median Years Operating' figures should be considered in the context of market maturity and brand recognition.