For Chem Dry owners in the 2nd quartile, what is the average number of franchises per owner?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
missed, and the arbitration will be the | | | | means of dispute resolution. |
| Group Ranked by Average Revenue | Numb er of Owne rs | Number of Franchi ses | Average Franchises/O wner | Average Revenue/O wner | Median Revenue/O wner | Average Revenue/Fran chise | Median Revenue/Fran chise |
|---|---|---|---|---|---|---|---|
| Top 10% | 25 | 141 | 5.6 | $ 1,030,995 | $ 903,593 | $ 182,801 | $ 173,614 |
| 1st | 62 | 292 | 4.7 | $ 736,831 | $ 641,881 | $ 156,450 | $ 173,538 |
| Quartile | |||||||
| 2nd | 62 | 163 | 2.6 | $ 288,025 | $ 285,552 | $ 109,556 | $ 118,635 |
| Quartile | |||||||
| 3rd | 61 | 137 | 2.2 | $ 169,612 | $ 163,224 | $ 75,521 | $ 83,408 |
| Quartile | |||||||
| 4th | 61 | 114 | 1.9 | $ 102,782 | $ 105,775 | $ 54,997 | $ 59,922 |
| Quartile | |||||||
| Bottom | 25 | 43 | 1.7 | $ 85,438 | $ 86,602 | $ 49,673 | $ 46,387 |
| 10% | |||||||
| Total | 246 | 706 | 2.9 | $ 325,842 | $ 216,261 | $ 113,537 | $ 100,034 |
| Group Ranke d by Averag e Reven ue | Numb er of Owne rs | Number of Franchi ses | Average Franchises/O wner | Average Revenue/Ow ner | Median Revenue/Ow ner | Average Revenue/Franc hise | Median Revenue/Franc hise |
| ------------------------------------------------------ | ----------------------------- | -------------------------------- | --------------------------------- | ------------------------------ | ----------------------------- | ---------------------------------- | --------------------------------- |
| 1 | 61 | 61 | 1.0 | $ 204,975 | $159,984 | $ 204,975 | $ 159,984 |
| 2 | 84 | 168 | 2.0 | $ 236,474 | $167,874 | $ 118,237 | $ 83,937 |
| 3 or | 101 | 477 | 4.7 | $ 473,167 | $361,695 | $ 100,188 |
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 average number of franchises per owner in the 2nd quartile is 2.6. This data is based on the financial performance of 246 Chem Dry franchise owners who use Chem Dry's Customer Management Software and operated their businesses for at least one year as of January 1, 2023, and throughout 2023. These owners collectively own 706 Chem-Dry franchises.
This means that, among the Chem Dry franchise owners whose average revenue falls into the second quartile, each owner manages approximately 2 to 3 franchise locations. This could indicate a level of operational efficiency or market saturation that allows these owners to oversee multiple units effectively. It's important to note that this is an average, and individual owners may have more or fewer franchises.
Prospective franchisees should consider that the number of franchises per owner can impact workload, management responsibilities, and overall profitability. While owning multiple franchises can increase revenue potential, it also requires more significant investment, staffing, and administrative overhead. It is important to evaluate your own capacity and resources to determine the optimal number of franchises to manage effectively. Further research and due diligence are recommended to understand the factors that contribute to successful multi-unit ownership within the Chem Dry system.