Does Chem Dry have any purchasing or distribution cooperatives for franchisees?

According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry does not have any purchasing or distribution cooperatives for its franchisees. The FDD states this explicitly in Item 8 under the section titled "Cooperatives".

While Chem Dry does not have cooperatives, it does negotiate prices with various companies for the benefit of its franchisees. These negotiations cover items such as uniforms, computers, software, web hosting, background checks, tradeshow displays, payroll services, van graphics, and credit card services. This suggests that Chem Dry actively seeks to leverage its network size to secure favorable pricing for franchisees on essential business products and services.

Chem Dry also requires franchisees to purchase certain items from Chem Dry or approved suppliers. Specifically, franchisees must purchase all cleaning solutions from Chem Dry. For the fiscal year ending December 31, 2023, Chem Dry derived $10,587,872.78 from the sale or lease of products or services to Chem-Dry franchisees, which represented 34.1% of their total 2023 revenue. Additionally, Chem Dry collected $74.859 in revenue from rebates and other payments from approved suppliers based on sales made to franchisees, representing 0.24% of their total 2023 revenue. These supplier payments offset the costs of the franchisee convention and support the supplier marketing program directed to franchisees.

Chem Dry estimates that required purchases and leases from them or designated suppliers account for approximately 90% of the initial investment to establish a Chem-Dry Business and approximately 15% to 30% of the ongoing operational purchases and leases. This indicates that while franchisees are not part of a purchasing cooperative, they are still subject to restrictions on where they can source certain products and services, with a significant portion of their spending directed towards Chem Dry or its approved suppliers.