What was the net change in the number of franchised Chem Dry outlets during 2023?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| 2021 | 1770 | 1692 | -78 | |
| Franchised | 2022 | 1692 | 1437 | -255 |
| 2023 | 1437 | 1284 | -153 | |
| 2021 | 0 | 0 | 0 | |
| Company | 2022 | 0 | 0 | 0 |
| Owned | ||||
| 2023 | 0 | 0 | 0 |
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, the net change in the number of franchised outlets during 2023 was a decrease of 153. At the start of 2023, there were 1,437 franchised outlets, which decreased to 1,284 by the end of the year.
This decrease in franchised outlets could indicate several factors that prospective franchisees should consider. It may reflect challenges in maintaining profitability, difficulties in managing operations, or other issues that led to closures or non-renewals. Understanding the reasons behind this net change is crucial for anyone considering investing in a Chem Dry franchise.
Prospective franchisees should investigate further by speaking with current and former franchisees to understand the challenges and opportunities within the Chem Dry system. Reviewing Item 20 in detail and asking the franchisor for additional context on the closures and non-renewals can provide a clearer picture of the franchise's health and stability. This due diligence will help potential franchisees make an informed decision about their investment.