How many Chem Dry franchises were operating in California at the end of 2023?
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, at the end of 2023, there were 198 Chem Dry franchises operating in California. The FDD provides a detailed breakdown of outlet statistics by state, including the number of outlets at the start of the year, outlets opened, terminations, non-renewals, outlets reacquired by the franchisor, outlets that ceased operations for other reasons, and the number of outlets at the end of the year. This information is presented in Table 1, which covers the years 2021, 2022, and 2023.
Specifically for California, the data shows a decrease in the number of Chem Dry franchises over the three-year period. In 2021, there were 256 outlets at the end of the year. This number increased to 224 in 2022. By the end of 2023, the number further decreased to 198. This decrease reflects both terminations and non-renewals of franchise agreements, as well as other factors that may cause a franchise to cease operations.
For a prospective franchisee, this data highlights the importance of understanding the dynamics within the California market. While the initial number of franchises was relatively high, the trend indicates a decline. A potential franchisee should investigate the reasons behind this decline, such as market saturation, competition, or other economic factors, to assess the viability of a Chem Dry franchise in California. It would be prudent to speak with current and former franchisees in California to gain insights into their experiences and challenges.
It is also important to note that the FDD includes lists of current and former franchisees as of December 31, 2023, in Exhibits E and F, respectively. These lists can be valuable resources for conducting due diligence and gathering firsthand information about the Chem Dry franchise system. However, the FDD also mentions that some franchisees may have signed provisions restricting their ability to speak openly about their experiences, which could limit the information available to potential buyers.