Is the Chem Dry yearly minimum purchase amount per franchise owned?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
License Fee.
ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Monthly Franchise Fee | The then current fee, which is presently $466.011 | 10th day of month | Generally, begins four months after you complete New Buyer Training, or if you are an existing Franchisee, the 4th month following the signing of the Franchise Agreement. If you are a transferring Franchisee, the month following the signing of the Franchise Agreement. Subject to CPI increase each year on April 1 and not more than once per calendar year. This fee must be paid via electronic funds transfer. The CPI increase for 2024 is 3%. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, there is a yearly minimum purchase amount required for each franchise owned. The current minimum is $3,244.50 per year. This amount is subject to an increase, not more than once per calendar year, to reflect increases in the Consumer Price Index (CPI). These proprietary products must be purchased from Chem Dry.
This minimum purchase requirement means that a Chem Dry franchisee must spend at least $3,244.50 annually on supplies sourced directly from the franchisor for each of their locations. For franchisees operating multiple units, this obligation scales linearly with each additional franchise they own.
This requirement ensures that franchisees maintain Chem Dry's standards by using approved products, but it also represents a recurring cost that impacts profitability. Prospective franchisees should factor this expense into their financial projections and business planning. It is also important to note that if the Franchise Agreement terminates before expiration, the franchisee will owe the Minimum Purchase Amount.