How does Chem Dry define 'franchise' when counting the number of Responding Franchises?

According to Chem Dry's 2024 Franchise Disclosure Document, when calculating the number of Responding Franchises for the Item 19 financial performance representation, each franchise agreement is counted as one "franchise." This means that if a single owner has multiple Chem Dry franchise agreements, each of those agreements is counted separately in the "Number of Franchises" data.

This definition is important for prospective franchisees to understand when reviewing the financial performance data. The Item 19 data includes information from 706 Responding Franchises owned by 246 Responding Franchise Owners. Because the average revenue per franchise is calculated by dividing the total annual revenue by the total number of franchises, a franchisee needs to understand that some owners operate multiple franchises, which impacts the averages presented.

Understanding this definition helps a potential Chem Dry franchisee interpret the financial performance data more accurately. For example, the document shows that the "Average Franchises per Owner" varies across different revenue groups. In the "Top 10%" revenue group, the average is 5.6 franchises per owner, while in the bottom 10%, it's 1.7. This indicates that higher-revenue owners tend to operate more franchises, which could influence the overall revenue figures. Therefore, a new franchisee should consider these factors and how their own operational plans align with the data presented.