Chem-Dry Franchise Cost, Revenue & Review 2026
- Investment
- $78K – $248K
- Disclosed sales
- $319K
- gross sales, not profit
- SBA charge-off
- 29.7%
- on 98 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Chem-Dry is a carpet- and upholstery-cleaning franchise using its proprietary hot-carbonation extraction process. Franchisees run a route-based service, scheduling jobs, dispatching technician crews, and building a local client base in a protected territory.
FranchiseVerdict summary · 2026
A Chem-Dry franchise requires a total initial investment of $78K – $248K, including a $18K – $36K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $319K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 29.7% charge-off rate across 98 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $78K – $248K
- 23rd pct Cleaning & Ma…
- Avg gross sales
- $319K
- Per franchisee, not per outlet
- Royalty
- 4.0%
- 3rd pct Cleaning & Ma…
- Units
- 963
- 85th pct Cleaning & Ma…
- SBA charge-off
- 29.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $78K – $248K including a $36K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $319K/year (median $215K). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 29.7% across 98 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -137 franchised outlets in the latest year (23 opened, 40 closed) (Item 20).
- FLAG70 units terminated last reporting year (7.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Chem-Dry, Inc.
- Parent company
- BFG Holdco, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- ASP BF Intermediate Sub, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- Harris Research, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer of BELFOR Franchise Group, LLC
- Sheldon Yellen
- Incorporated in
- UT
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $30.1M
- vs $29.5M prior year
Same owner · FDD Item 1, page 8
1 other brand on this site name ASP BF Intermediate Sub, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Sheldon Yellen
- Headquarters
- MI
- Founded
- 1977
- FDD year
- 2026
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost is about typical for a cleaning & maintenance franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $3K | $9K |
| Equipment, build-out, other | $39K | $203K |
| Total initial investment | $78K | $248K |
Source: Chem-Dry 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $78K – $248K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $9K
- Top 40% of category vs category
- Franchise fee
- $18K – $36K
- Top 40% of category vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- Our then-current fee which is presently $160.
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Technology fee | $450 |
| Transfer fee | $10K |
| Renewal fee | $4K |
| Inventory (initial) | $44K – $78K |
What do units actually make?
Average unit sales run 41% below the cleaning & maintenance norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Chem-Dry until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$169K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Chem-Dry unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $319K
- Per franchisee, per year — not per outlet
- Median gross sales
- $215K
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 226 franchisees
- vs category median 32 · large
- Range (low → high)
- $75K→$1.8MCited, not corroborated — printed on page 53 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 191 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $319K/year in gross sales. Median is $215K — top performers pull the average up, so a typical unit earns less.
Fee burden
4.0% royalty — lower than the category average.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -24.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance medians
How Chem-Dry Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Cleaning & Maintenance brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 963
- Opened
- 23
- Last reporting year
- Closed
- 40
- Terminated
- 70
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 50
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -24.9%
- Net unit change over 3 years
- 3-yr CAGR
- -24.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 70
- Not renewed
- 50
- Transferred
- 19
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
96 current owners across 5 states.
- CA 75
- AZ 10
- AL 5
- CO 5
- AR 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 98
- Loan volume
- $10.8M
- Median loan
- $65K
- 50th percentile
- Charge-off rate
- 29.7%
- on 98 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 70.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 57
- Defaults
- 27
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 16.6%
- brand above franchise avg ↑
- Jobs supported
- 326
- 3.0 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% to established operators
Franchise vs independent — in carpet and upholstery cleaning services, franchised businesses charge off at 16.6% vs 18.5% for independents — franchising is associated with 10% lower SBA default risk in this category.
Vintage analysis
Chem-Dry charge-off rate by loan vintage
Top lenders financing Chem-Dry franchisees
Showing 3 of 57 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Chem-Dry from SBA 7(a) FOIA data.
- Principal loss rate
- 18.5%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.48%
- Avg chargeoff amount
- $74K
- Lender concentration
- 7.1%
- Job velocity
- 3.0 per $100K
- NAICS benchmark
- 26.5%
- NAICS 561740
- Jobs supported
- 326
Top SBA lendersTop lender holds 7% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 7 | $1.3M | 16.7% |
| 2 | Zions Bank, A Division of | 7 | $645K | 28.6% |
| 3 | Wells Fargo Bank National Association | 6 | $609K | 33.3% |
| 4 | Bank of America, National Association | 5 | $150K | 0.0% |
| 5 | Celtic Bank Corporation | 5 | $675K | 100.0% |
| 6 | PNC Bank, National Association | 4 | $467K | 50.0% |
| 7 | Mountain America FCU | 3 | $30K | 0.0% |
| 8 | Traditional Bank, Inc. | 3 | $189K | 66.7% |
| 9 | Comerica Bank | 2 | $145K | 100.0% |
| 10 | Mechanics Bank | 2 | $255K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 11 | 5 | 45.5% |
| UTUtah | 11 | 5 | 45.5% |
| MOMissouri | 7 | 0 | 0.0% |
| WAWashington | 7 | 1 | 16.7% |
| FLFlorida | 5 | 0 | 0.0% |
| MIMichigan | 5 | 3 | 60.0% |
| TXTexas | 5 | 5 | 100.0% |
| KSKansas | 4 | 2 | 50.0% |
| IAIowa | 3 | 0 | 0.0% |
| INIndiana | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 29.7% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 29.7% — 85% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Chem-Dry presents HIGH RISK due to accelerating unit decline, hidden profitability metrics, active litigation targeting franchisees, and no Item 19 financial transparency—indicating a contracting system with deteriorating franchisor-franchisee relations.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 pending cases (1 franchisee vs CDI alleging breach of contract/TCPA/fraud re Green Certification; 2 CDI vs former franchisees for post-termination covenant violations/trademark infringement); 3 prior cases (2 settled trademark/competition matters, 1 settled for $225,000 involving breach of contract/fiduciary duties allegations by former franchisee)
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated financials of parent BFG Holdco, Inc. (dollars in thousands); Net Revenue $30,117K for FY ended Dec 31, 2025. Other revenue is Total Non-Operating Income (interest income $236K + other income $420K). 2023 statements audited by predecessor auditors; 2025/2024 audited by BDO USA, P.C.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MEDSystem contraction: 12.5% unit decline YoY indicates accelerating franchisee departures and loss of confidence
- 02MINORNo financial disclosure: Franchisor refuses to disclose average net income despite $319k average revenue, suggesting profitability concerns
- 03HIGHAggressive litigation posture: Franchisor actively pursuing breach and IP claims against franchisees; three prior trademark/covenant disputes indicate systemic relationship deterioration
- 04MINORUnprotected territory: No exclusive territory protection creates direct competition risk between franchisees and corporate locations
- 05MINORPending arbitration over program changes: Active dispute regarding franchisor-mandated operational changes signals potential forced costs or compliance burdens
- 06MINORShort 5-year term: Renewal uncertainty combined with declining system size increases reinvestment risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 125,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 26 |
| Curable defaultsℹ | 17 |
| Mandatory arbitration | Yes |
| Arbitration location | Ann Arbor, MI |
| Jury trial waiver | Yes |
| Governing law | MI |
| Litigation count | 6 |
View Item 3 litigation summary
3 pending cases (1 franchisee vs CDI alleging breach of contract/TCPA/fraud re Green Certification; 2 CDI vs former franchisees for post-termination covenant violations/trademark infringement); 3 prior cases (2 settled trademark/competition matters, 1 settled for $225,000 involving breach of contract/fiduciary duties allegations by former franchisee)
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 17 hrs
- Training location
- BFG headquarters in Ann Arbor, Michigan (or another designated location); JumpStart conducted at franchisee's location (virtual)
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisor approves territory; franchisee selects specific site within territory; franchisor does not assist with site selection or lease negotiation
- Franchisor financing
- Offered
- Item 10
- POS system
- Customer Service Management (CRM) software system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Customer Service Management (CRM) software system
Item 20 · call current owners
Franchisee Contacts
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chem-Dry franchise?
The total investment to open a Chem-Dry franchise ranges from $78K – $248K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chem-Dry franchise owners earn?
According to Item 19 of the Chem-Dry FDD, the average gross sales per unit is $319K. The median is $215K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Chem-Dry?
Chem-Dry is franchised by Chem-Dry, Inc.. Its parent company is BFG Holdco, Inc.. The ultimate parent named in the FDD is ASP BF Intermediate Sub, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Chem-Dry FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chem-Dry FDD and qualifies whose outlets they describe.
What is Chem-Dry's franchise failure rate?
Based on SBA 7(a) loan data, Chem-Dry has a charge-off rate of 29.7% across 98 loans, meaning 29.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Chem-Dry franchise locations are there?
As of their most recent FDD filing, Chem-Dry has 963 total units in the United States, including 963 franchised units and 0 company-owned units. 23 new units were opened in the latest reporting year.
Is Chem-Dry a good franchise to buy?
FranchiseVerdict rates Chem-Dry as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.