Culligan Franchise Cost, Revenue & Review 2026
- Investment
- $130K – $816K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 117 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Culligan is a home-services franchise providing water treatment, softeners, filtration, and bottled-water delivery for homes and businesses. Franchisees run a local dealership selling, installing, and servicing water systems and managing delivery routes.
FranchiseVerdict summary · 2026
A Culligan franchise requires a total initial investment of $130K – $816K, including a $41K franchise fee and an ongoing 2.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $130K – $816K
- 50th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 2.0%
- 1st pct Home Services
- Units
- 550
- 88th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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 $130K – $816K including a $41K franchise fee, 2.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better).
- GROWTHNegative: net -20 franchised outlets in the latest year (1 opened, 21 closed) (Item 20).
- DECLINESystem contracting at -7.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Culligan International Company
- Parent company
- AI Aqua Merger Sub, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Osmosis Holdings, LP
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Culligan Zeolite Company
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Scott Clawson
- Incorporated in
- Delaware
- HQ
- 9399 West Higgins Road, Suite 1100, Rosemont, Illinois 60018
- Auditor
- Ernst & Young (member firm)
- Audited financials
Overview
About
- CEO
- Scott Clawson
- Headquarters
- Illinois
- Founded
- 1936
- FDD year
- 2026
- States available
- 44
Can you afford it, and what does the money buy?
Entry cost runs 181% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $41K | $41K |
| Working capital (3–6 mo) | $55K | $150K |
| Equipment, build-out, other | $34K | $625K |
| Total initial investment | $130K | $816K |
Source: Culligan 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
- $130K – $816K
- Middle of category vs category
- Liquid capital req'd
- $55K – $150K
- Bottom third — review vs category
- Franchise fee
- $41K – $41K
- Top 40% of category vs category
- Royalty
- 2.0%
- 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 | $2K |
| Renewal fee | $0 |
| Inventory (initial) | $15K – $75K |
| Total fee load | 3.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Culligan makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Culligan 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 annual revenue, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 3.0% — below the Home Services median of 8.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -7.8% 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 Home Services medians
How Culligan Compares
Category median of published Home Services 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
- 550
- Opened
- 1
- Last reporting year
- Closed
- 21
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.8%
- Company-owned
- 112
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (3-yr)
- -7.8%
- Net unit change over 3 years
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 13
- Reacquired
- 18
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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
427 current owners across 45 states.
- MN 35
- MI 31
- WI 27
- IL 26
- TX 23
- CA 22
- IA 21
- OH 21
- IN 18
- NE 18
- PA 18
- MO 14
- +33 more states
Counts only, from the list the franchisor prints in Item 20; 32 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 117 loans
- Limited SBA coverage: 117 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 117 loans
- 5-yr charge-off
- Limited · 117 loans
- Loans approved 2021+
- Active lenders
- 51
- Defaults
- 0
- Typical loan rate
- 7.1%
- avg rate to borrowers
- vs industry
- 7.1%
- NAICS 221310
- Jobs supported
- 285
- 2.1 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 13% went to startups / new businesses, 87% to established operators
Top lenders financing Culligan franchisees
Showing 3 of 51 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 Culligan from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 7.09%
- Lender concentration
- 15.8%
- Job velocity
- 2.1 per $100K
- NAICS benchmark
- 7.1%
- NAICS 221310
- Jobs supported
- 285
Top SBA lendersTop lender holds 16% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 3 | $759K | N/A |
| 2 | First Bank & Trust | 3 | $688K | N/A |
| 3 | Community State Bank | 2 | $2.3M | 0.0% |
| 4 | D. L. Evans Bank | 2 | $140K | 0.0% |
| 5 | County National Bank | 2 | $711K | 0.0% |
| 6 | Peoples Security Bank and Trust Company | 1 | $2.2M | 0.0% |
| 7 | First Financial Bank | 1 | $492K | 0.0% |
| 8 | Manufacturers and Traders Trust Company | 1 | $1.3M | 0.0% |
| 9 | First Bank of the Lake | 1 | $534K | N/A |
| 10 | First Internet Bank of Indiana | 1 | $883K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| SDSouth Dakota | 3 | 0 | -- |
| WVWest Virginia | 3 | 0 | -- |
| IDIdaho | 2 | 0 | 0.0% |
| INIndiana | 2 | 0 | 0.0% |
| MIMichigan | 2 | 0 | 0.0% |
| CACalifornia | 1 | 0 | -- |
| KSKansas | 1 | 0 | -- |
| MDMaryland | 1 | 0 | 0.0% |
| NMNew Mexico | 1 | 0 | -- |
| NYNew York | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young (member firm)
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: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 64 / 100 verdict
- 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
- 03MEDLong commitment term: 20.6-year franchise agreement locks franchisees into declining system with limited exit flexibility
- 04MINORModest 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
What are you signing up for?
Ongoing fees run about 3.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Termination groundsℹ | 13 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | JAMS office closest to the primary place of business of the defendant/respondent (or nearest the disputed territory), under JAMS Streamlined Arbitration Rules; must first go through FRC mediation |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 169 hrs
- On-the-job training
- 0 hrs
- Training location
- Culligan headquarters in Rosemont, Illinois, plus regional hotel/meeting-room locations and Culligan dealerships throughout the United States
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisor_assists
- Franchisor financing
- Not offered
- Item 10
- 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
459 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 Culligan franchise?
The total investment to open a Culligan franchise ranges from $130K – $816K, with an initial franchise fee of $41K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Culligan franchise owners earn?
Culligan makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Culligan?
Culligan is franchised by Culligan International Company. Its parent company is AI Aqua Merger Sub, Inc.. The ultimate parent named in the FDD is Osmosis Holdings, LP. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Culligan 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 Culligan FDD and qualifies whose outlets they describe.
What is Culligan's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Culligan (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Culligan franchise locations are there?
As of their most recent FDD filing, Culligan has 550 total units in the United States, including 438 franchised units and 112 company-owned units. 1 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 verdict score of 64 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
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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.