Chem-Dry
Formerly known as Career Development Institute
Bottom line
- Total investment $78K – $248K including a $24K franchise fee.
- Average unit revenue of $319K/year (median $215K).
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 114 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Chem-Dry unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Chem-Dry units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$192K
on $958K purchase
Total debt
$766K
SBA $0.5M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 62 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
96 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Chem-Dry · FDD (2026) PDF