How many Chem Dry franchises were operating in California at the end of 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 10 | 2 | 5 | 0 | 0 | 4 | 3 | |
|---|---|---|---|---|---|---|---|---|
| California | 2021 | 272 | 8 | 19 | 5 | 0 | 0 | 256 |
| 2022 | 256 | 13 | 5 | 13 | 0 | 27 | 224 | |
| 2023 | 224 | 5 | 16 | 15 | 0 | 0 | 198 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION TABLE 1 SYSTEMWIDE OUTLET SUMMARY FOR YEARS – 2021 – 2023 (FDD pages 59–68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, there were 256 Chem Dry franchises operating in California at the end of 2021. This number is derived from the Systemwide Outlet Summary table, which provides a breakdown of outlet statistics by state and year. The table shows that California had 272 outlets at the start of 2021, opened 8 new outlets, terminated 19 franchises, had 5 non-renewals, and ended the year with 256 outlets.
For a prospective franchisee, this data indicates the dynamics of the Chem Dry franchise network in California. The difference between the number of outlets at the start of the year and the end of the year reflects the net change in the number of franchises. In 2021, California saw a decrease of 16 franchises. This could be due to various factors such as franchisees retiring, selling their businesses, or not meeting the franchisor's standards.
It's important to note that the number of outlets opened does not directly correlate with the net change, as terminations and non-renewals also play a significant role. A high number of terminations or non-renewals could be a red flag, indicating potential issues with the franchise system or market conditions in that particular state. However, it is also important to consider the overall size of the franchise network in the state. For example, while 19 terminations may seem high, it represents a small percentage of the 272 franchises operating at the beginning of the year.
Prospective franchisees should investigate the reasons behind terminations and non-renewals to understand the health and stability of the Chem Dry franchise system in California. They should also consider the number of new franchises opened in relation to those that closed, to assess the growth potential and market saturation in the state.