How does Chem-Dry determine the number of Chem-Dry franchises a Franchised Area can sustain?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
Your Franchise Agreement identifies a nonexclusive "Franchised Area" that we assign in which you must deliver the Approved Services. The population of a Franchised Area determines the number of Chem-Dry Businesses that the Franchised Area can sustain according to the formula of one Chem-Dry franchise per 60,000 residents. Multiple Chem-Dry Businesses may serve the same Franchised Area.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the number of Chem-Dry franchises that a Franchised Area can sustain is determined by the population within that area. Chem-Dry uses a formula of one Chem-Dry franchise per 60,000 residents to determine the number of franchises the area can support.
This means that a prospective franchisee's territory size and potential customer base are directly linked to the population density of the assigned Franchised Area. It also implies that Chem-Dry may allow multiple franchises to operate within the same area.
It is important for a potential Chem-Dry franchisee to understand the demographics of their Franchised Area and how the population density translates into potential business volume. Prospective franchisees should also inquire about the potential for multiple franchises operating in the same area and how that might affect their business.