What is the population limit for a Chem Dry Small Market Franchise area?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
al Franchise Acquisition**
| FRANCHISE TYPE | INITIAL LICENSE FEE1 | |---|---| | Expansion Franchise – an “Expansion Franchise” does not include any part | $18,000 | | of an Initial Package. | | | Small Market Franchise – a “Small Market Franchise” is generally defined | $6,000 | | as an area with a population of fewer than 120,000 and no current Chem- | | | Dry presence. This franchise offering does not include any part of an Initial | | | Package. | | 1 If you pay the Initial License Fee when you sign your Franchise Agreement or within 6 months after you sign your Franchise Agreement and the Business Note, we will discount the Initial License Fee by 10%, or $1,800 for a net Initial License Fee of $16,200 for an Expansion Franchise, or $600 for a net Initial License Fee of $5,400 for a Small Market Franchise.
The Initial Fees listed above are non-refundable. Prior to an Additional Franchise Acquisition, CDI reserves the right to require that you demonstrate to our satisfaction that you are developing your current Franchised Area(s) to the full market potential, have sufficient equipment and crew to manage additional franchises, and that you are in good standing with CDI.
Source: Item 5 — INITIAL FEES (FDD pages 15–19)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a Small Market Franchise is defined as an area with a population of fewer than 120,000 residents. Additionally, the area should not have a current Chem-Dry presence. This type of franchise does not include any part of an Initial Package.
For a prospective franchisee, this means that Chem Dry offers a lower-cost entry point into the franchise system for smaller markets. The initial license fee for a Small Market Franchise is $6,000, which is less than the initial license fee for an Expansion Franchise, which is $18,000. This reduced fee can make franchise ownership more accessible for individuals in less densely populated areas.
However, it's important to note that the Small Market Franchise does not include an Initial Package, meaning the franchisee will need to acquire equipment and other necessary items separately. This could potentially offset some of the savings from the reduced initial fee. A prospective franchisee should carefully consider the costs of acquiring these items when evaluating the overall investment required for a Small Market Franchise. It is also important to note that the franchisor can change the initial fees at any time without notice.