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As customers look to upgrade their homes, they will probably need help removing old carpeting or repairing broken tile grout. With almost 14 billion square feet of carpet installation happening every year, the market for carpet cleaning services is enormous! Although the $5 billion industry still attracts big players like Chem-Dry, COIT, The Brandon Agency & Arslanian Brothers, smaller players are also more than happy to play in this game.
As the safety and security of homes and workplaces remain a top priority amid the pandemic, demand for property cleaning and restoration continues to surge. Entrepreneur Magazine recently named Chem-Dry-Carpet Cleaning Franchise the industry one of the hottest franchise categories.
As a Chem-Dry franchisee, your main goal is to serve customers and rent equipment. To successfully do that, you have to set up a strong team of technicians who will deliver top-notch carpet cleaning results daily. If you do not have the time or the skills to train new technicians, you probably should not get a Chem-Dry franchise.
They over-saturated the franchise areas. Chem-Dry opened franchises in markets that already had other franchises, sometimes even competing head-to-head with other franchisees. They left no room for growth and made it impossible for the existing franchise owners to increase their profit margin or sales. They created price wars among franchisees.
Hi, this is Dan Rowe from Fransmart. Our website helps you with all the information you need to start a successful franchise business. Whether you want to buy a healthy menu Greek franchise, a fast-developing profitable sandwich franchise, franchise opportunity as a Cashpoint, or an award-winning franchise with low risk and capital, we have information on everything. We can also assist you in finding the perfect fit for your skills and experience and how to finance your new franchise.
Our comprehensive analysis of existing franchisee complaints, competitors’ proposals, and company research shows that Chem-Dry-Carpet Cleaning Franchise is not the best Investment in the franchise industry.
Chem-Dry Carpet Cleaning: An Overview
The company has been in business for over 40 years. The company is known for its high-quality cleaning services. Chem-Dry has over 3580 franchises in operation in 55 countries and 800 in the U.S. itself. These franchises have helped Chem-Dry become one of the leading carpet cleaning companies.
Professional franchise owners and managers at Chem-Dry International, the largest carpet cleaning franchise in the U.S., use innovative and proprietary green cleaning and deodorizing formulas to provide top-notch carpet and upholstery cleaning services to residential and commercial customers. Chem-Dry is a more affordable business franchise that works on a home-based business model.
According to Chem-Dry’s official Franchise Disclosure Document (FDD), the investment required to launch a carpet cleaning service is $70,000 — and that does not even include travel and marketing.
How Much Chem-Dry Franchise Cost?–Financial requirements of this franchise:
- Liquid capital: $50,000
- Net Worth: $70,000
- Total Investment: $68,145 – $191,200
- Licence Fee: $23,500
- Royalty Fee: $414.32/mo
Reasons To Not Invest In Chem-Dry Franchise:
Chem-Dry is the biggest and one of the oldest carpet cleaning franchises in the world. However, in 2012, they were fast losing their business — plagued with colossal debt and a struggling workforce — they were ready to call it quits when Dan Tarantin, new CEO, stepped in and changed everything. Since then, Chem-Dry has been expanding and doing incredibly well and growing by 18% this year alone and grossing $1.5 billion in sales.
In the present day, there are many aspects of working with the most significant carpet cleaning brand that has to be considered before investing in its franchise. We have researched through various portals and taken feedback from industry insiders to bring to your notice the reasons why your investment in this brand could not be profitable.
#1 Offer more Services for a Lesser Cost
In a shrinking economy, more and more people are looking at saving costs rather than spending them. Carpet cleaning is a discretionary expense rather than a necessity, so it is one that people will cut from their budget if they have to. Also, with the increasing competition in the carpet cleaning industry, clean home services companies are forced to cut their prices and offer more cleaning for a lesser cost. Low profits for this service mean low wages and low investment in training, which will affect the quality of service provided to customers.
#2 Labour Training and Retention:
The cleaning business is labor-intensive work. Here the cleaning agent is an extension of the company as he represents the company in its work. However, it may seem that this work requires unskilled labor, which is not the case. A cleaning company spends a lot of time, money, and effort effectively training its employees. The problem is that the industry also has a high attrition rate, and the franchise has to spend substantial time and money finding and training its employees, which becomes a central pain point of this business.
#3 Multiple fee payments at various points:
When it comes to licensing and startup, Chem-Dry has many costs involved in its franchise. While the company’s initial license fee is $23,500, there are entirely additional fees to consider:
- Initial license fee: $23,500
- Equipment Package Fee: $4,400
- Product, Marketing and Operations Package Fee: $3,500
- Total Costs: $31,400
Fransmart offers a franchise profit calculator that will help you estimate franchise earnings based on the number of employees and how many territories you occupy. Watch the video to determine how much profit you will earn as a Chem-Dry Cleaning Franchise owner.
In all, the franchise of Chem-Dry has to consider any costs paid by the company, which is quite substantial.
#4 Investment in the Best Cleaning Equipment:
The cleaning companies have to meet the growing expectations of their customers in terms of cleanliness delivered. For that, a high cost that has to be incurred is in the latest equipment and supplies. With the technology change, the companies have to keep updating themselves regularly, leading to a high cost.
Conclusion
Getting into a cleaning business is not all blue skies and roses — the industry has its challenges. A big one is attracting and hiring qualified staff, which can be costly and time-consuming. Customers also expect their house to be cleaned through the latest technology, which means you need to invest in new equipment continually. Also, the growing customer demand puts increasing pressure on the franchises to deliver the best quality at reduced rates.
Sources:
https://www.franchisegator.com/franchises/chem-dry-carpet-cleaning/
https://www.franchisedirect.com/cleaningfranchises/chem-dry-carpet-cleaning-franchise-07022/ufoc/
https://www.entrepreneur.com/franchises/chemdrycarpetupholsterycleaning/282193
https://whatisfullformof.com/is-there-a-future-in-carpet-cleaning/