Chem-DryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Chem-Dry franchise requires a total initial investment of $78K – $248K, including a $24K franchise fee. Per the 2026 FDD, average unit revenue was $319K[2]. SBA 7(a) loans show a 29.7% charge-off rate across 98 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $78K – $248K
- 22nd pct Cleaning & Ma…
- Avg gross sales
- $319K
- 8th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 963
- 81st pct Cleaning & Ma…
- SBA default
- 29.7%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
29.7% of SBA loans charged off across 98 loans, above the 16% franchise average.
Franchising since 1978. Systems this mature have refined operations and brand recognition.
Franchised units fell from 1439 to 941 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $78K – $248K including a $24K franchise fee.
- Average unit revenue of $319K/year (median $215K).
- Verdict F (Bottom Quintile) with a risk score of 79/100. 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, 2010–2024).
- System contracting at -24.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Chem-Dry, Inc.
- Parent company
- BFG Holdco, Inc.
- Incorporated in
- UT
- HQ
- 5405 Data Court, Ann Arbor, Michigan 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $31K
- vs $30K prior year
Overview
About
Franchisees operate carpet and upholstery cleaning services using Chem-Dry's proprietary hot carbonation extraction technology. Day-to-day operations include scheduling customer appointments, performing on-site cleaning services, managing technician crews, handling customer service inquiries, and generating local marketing to build client bases within their assigned territory.
- CEO
- Edward Quinlan
- Headquarters
- MI
- Founded
- 1977
- FDD year
- 2026
- States available
- 48
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $24K | $24K |
| Working capital (3–6 mo) | $3K | $9K |
| Equipment, build-out, other | $52K | $216K |
| 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$32K
10.0% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $78K – $248K
- Better than avg vs category
- Liquid capital req'd
- $3K – $9K
- Better than avg vs category
- Franchise fee
- $24K – $24K
- Better than avg vs category
- Royalty
- $491.40 per month
- Ad fund
- $160 per month
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $349 |
| Transfer fee | $4K |
| Renewal fee | $4K |
Financial Performance
- Avg gross sales
- $319K
- Per unit, per year
- Median gross sales
- $215K
- Item 19 type
- gross_sales
- Sample size
- 226 units
- vs category median 31 · large
- Range (low → high)
- $75K→$1.8M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 204 Cleaning & Maintenance brands
vs Cleaning & Maintenance averages
How Chem-Dry Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 963
- Opened
- 23
- Last reporting year
- Closed
- 160
- Turnover rate
- 16.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -12.5%
- Net unit change last year
- 3-yr CAGR
- -24.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 19
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.
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%
- 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
Vintage analysis
Chem-Dry charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Chem-Dry's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 28-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 29.7% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 79 / 100 rating
- 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
- 05MINORLow royalty relative to upfront investment: $491/month on $77.6k-$248k investment (3.6-7.5% annually) suggests weak unit economics may not justify initial capital
- 06MINORPending arbitration over program changes: Active dispute regarding franchisor-mandated operational changes signals potential forced costs or compliance burdens
- 07MINORShort 5-year term: Renewal uncertainty combined with declining system size increases reinvestment risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 6 |
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 17 hrs
- 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
FDD download
Chem-Dry · FDD (2026) PDF
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 $24K. 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 1,439 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 F-grade franchise with a risk score of 79 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
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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.