How many Chem-Dry business franchises are represented by the Responding Franchise Owners in the financial performance representation?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
elect to use the Customer Management Software but were not required by their franchise agreements to do so.
In January 2024, CDI produced a report on all franchisees currently using our Customer Management Software regarding certain financial and other information relating to the operation of their Chem-Dry business franchises during 2023. Some franchise owners operate their Chem-Dry businesses on a parttime basis or are semi-retired, and those operating businesses are different than the full time Chem-Dry business franchise being offered. To compare the existing Chem-Dry franchised business to the franchise offered accurately, CDI removed data from the report on franchisees who earned less than $75,000 per year based on their own decisions to operate on a part-time or semi-retired basis. Of the
remaining franchisees using our Customer Management Software, CDI received 2023 financial information from 246 franchise owners (the "Responding Franchise Owners"), who collectively own 706 Chem-Dry business franchises (the "Responding Franchises"), and who have operated their businesses at least 1 year as of January 1, 2023 and then operated those franchises throughout all of 2023.
The Responding Franchise Owners represent approximately 41.9%, and the Responding Franchises represent approximately 56.9%, of our U.S. franchise owners and franchises who owned their businesses for at least 1 year and operated those franchises throughout all of 2023.
We have no reason to believe that the franchise owners who use our Customer Management Software, and whose information is incorporated into this financial performance representation, do not reflect a representative sample of all Chem-Dry franchise owners and franchises in the United States who owned their businesses for at least 1 year and operated those franchises throughout all of 2023.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–59)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the financial performance representation includes data from 246 franchise owners, referred to as the "Responding Franchise Owners." These 246 Responding Franchise Owners collectively own 706 Chem-Dry business franchises, which are referred to as the "Responding Franchises."
Chem-Dry specifies that the Responding Franchise Owners and Responding Franchises had to have operated their businesses for at least one year as of January 1, 2023, and then operated those franchises throughout all of 2023 to be included in the data. The Responding Franchise Owners represent approximately 41.9% of Chem-Dry's U.S. franchise owners. The Responding Franchises represent approximately 56.9% of Chem-Dry's U.S. franchises.
Chem-Dry also states that it believes the Responding Franchise Owners offer the same products and services that Chem-Dry authorizes new Chem-Dry business franchises to sell. The Responding Franchisees have been in business for an average of 20 years in their markets. The Responding Franchises operate in a mix of urban, suburban and rural areas, and they are disbursed geographically throughout the U.S.