What does 'Median Years Operating' represent in the Chem Dry financial performance data?

According to Chem Dry's 2024 Franchise Disclosure Document, 'Median Years Operating' reflects the median length of time in years that the Responding Franchise Owners have been operating their Chem-Dry business. In other words, it represents the midpoint of the range of years that the group of franchise owners included in the Item 19 financial performance representation have been operating their Chem Dry franchises. This metric provides a sense of the typical experience level among the franchisees whose data is being reported.

Specifically, Chem Dry's Item 19 includes data from 246 franchise owners operating 706 franchises, who have operated for at least one year as of January 1, 2023, and throughout 2023. The Responding Franchise Owners represent approximately 41.9%, and the Responding Franchises represent approximately 56.9%, of Chem Dry's U.S. franchise owners and franchises who owned their businesses for at least 1 year and operated those franchises throughout all of 2023. The FDD notes that these franchisees have been in business for an average of 20 years in their markets.

For a prospective franchisee, the 'Median Years Operating' can be a helpful indicator of the maturity and stability of the businesses included in the financial performance data. A higher median suggests that a significant portion of the franchisees have been operating for a considerable time, potentially indicating a degree of sustainability and established customer base. However, the FDD also cautions that a new franchisee would not start with an established customer base and should expect lower revenues initially. Additionally, the financial performance may vary based on factors like operational capability, pricing, competition, and the ability to sell ancillary products. Therefore, while the 'Median Years Operating' provides context, it should be considered alongside other factors and potential market conditions.