For the Chem Dry financial performance representation, what does 'Number of Franchises' refer to?

According to Chem Dry's 2024 Franchise Disclosure Document, the 'Number of Franchises' refers to the count of individual Chem-Dry business franchises within each measured category, out of a total of 706 Responding Franchises. Chem Dry considers each franchise agreement to be one 'franchise' for the purpose of counting the number of Responding Franchises. This data is derived from franchisees using Chem Dry's Customer Management Software.

The financial performance representation includes data from 246 franchise owners, known as the 'Responding Franchise Owners,' who collectively own 706 Chem-Dry business franchises, referred to as the 'Responding Franchises.' These franchises had been in operation for at least one year as of January 1, 2023, and operated throughout all of 2023. The data is categorized and presented in tables, showing the distribution of franchises across different performance groups.

For a prospective franchisee, understanding the distinction between 'Number of Owners' and 'Number of Franchises' is crucial. Some owners operate multiple Chem Dry franchises, which impacts the revenue figures. The FDD provides metrics such as 'Average Franchises per Owner' to give insight into this dynamic. The financial performance data is not audited and relies on self-reporting from franchisees using the Customer Management Software, so prospective franchisees should keep this in mind when reviewing the data.

It is important to note that the financial performance representation is based on a specific group of franchisees who use Chem Dry's Customer Management Software and meet certain criteria, such as a minimum annual revenue of $75,000. The results may not be representative of all Chem Dry franchisees, especially those who operate part-time or are semi-retired. Prospective franchisees should consider these factors and conduct their own due diligence to assess the potential financial performance of a Chem Dry franchise.