CulliganFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Culligan franchise requires a total initial investment of $130K – $814K, including a $39K franchise fee and an ongoing 2.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 117 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $130K – $814K
- 48th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 2.0%
- 1st pct Home Services
- Units
- 553
- 78th pct Home Services
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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
Only 0.0% of 117 SBA loans charged off, well below the 16% franchise average.
Franchising since 1955. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $130K – $814K including a $39K franchise fee, 2.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100. SBA loan charge-off rate of 0.0% across 117 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -10.2% 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
- CULLIGAN INTERNATIONAL COMPANY
- Parent company
- Osmosis Holdings, LP
- Incorporated in
- DE
- HQ
- 9399 West Higgins Road, Suite 1100, Rosemont, Illinois 60018
- Auditor
- Ernst & Young LLP
- Audited financials
Overview
About
Culligan franchisees operate water treatment and delivery businesses, serving residential and commercial customers with bottled water sales, water cooler rentals, and point-of-use filtration systems. Day-to-day operations include customer acquisition and retention, water delivery logistics, equipment maintenance and installation, billing/invoicing, and local marketing.
- CEO
- Scott Clawson
- Headquarters
- IL
- Founded
- 1945
- FDD year
- 2025
- States available
- 44
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $39K | $39K |
| Working capital (3–6 mo) | $55K | $150K |
| Equipment, build-out, other | $36K | $625K |
| Total initial investment | $130K | $814K |
Source: Culligan 2025 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
- $130K – $814K
- Near category avg vs category
- Liquid capital req'd
- $55K – $150K
- Below avg, review vs category
- Franchise fee
- $39K
- Better than avg vs category
- Royalty
- 2.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $8K |
| Renewal fee | $0 |
| Total fee load | 3.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How Culligan Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 553
- Opened
- 3
- Last reporting year
- Closed
- 6
- Turnover rate
- 1.1%
- Company-owned
- 93
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Net growth (yr3)
- -3.8%
- Net unit change last year
- 3-yr CAGR
- -10.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 6
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 117
- Loan volume
- $45.8M
- Median loan
- $411K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 51
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Culligan'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 12 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 117 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Culligan presents moderate-to-caution risk due to documented unit decline, absence of earnings transparency (no Item 19), substantial capital requirements, and a contracting franchise network in a mature water treatment market.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Score breakdown · what drove the 57 / 100 rating
- 01MINORSystem contraction: 553 units declining 3.8% YoY indicates shrinking franchise network and potential market saturation or franchisee attrition issues
- 02MINORNo Item 19 financial disclosure: Absence of average revenue and net income data prevents validation of profit claims and creates opacity around actual franchisee earnings
- 03MEDHigh investment ceiling: $813,515 maximum investment creates significant capital exposure with unclear ROI benchmarks due to missing financial performance data
- 04MEDLong commitment term: 20.6-year franchise agreement locks franchisees into declining system with limited exit flexibility
- 05MINORModest royalty structure masks true profitability risk: 2% of prior month's revenues provides minimal incentive alignment and suggests thin franchisor margins may limit support resources
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 | 20 years |
|---|---|
| Territory type | Geographic |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 169 hrs
- On-the-job training
- 0 hrs
- POS system
- Neveda, ABS/DMS, Unco, QuickBooks, and KDS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Neveda, ABS/DMS, Unco, QuickBooks, and KDS
Item 20 · call current owners
Franchisee Contacts
82 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Culligan · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Culligan franchise?
The total investment to open a Culligan franchise ranges from $130K – $814K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Culligan franchise owners earn?
Culligan does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Culligan's franchise failure rate?
Based on SBA 7(a) loan data, Culligan has a charge-off rate of 0.0% across 117 loans, meaning 0.0% 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 Culligan franchise locations are there?
As of their most recent FDD filing, Culligan has 553 total units in the United States, including 460 franchised units and 93 company-owned units. 3 new units were opened in the latest reporting year.
Is Culligan a good franchise to buy?
FranchiseVerdict rates Culligan as a B-grade franchise with a risk score of 57 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.
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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.