About The Carpet Chemist Franchise
The Carpet Chemist is a cleaning services franchise providing residential and commercial cleaning, maintenance, and restoration services for carpets, rugs, and upholstery.
Franchising since 2021, the brand uses a proprietary system that includes designated programs, materials, equipment, and cleaning products to deliver consistent, high quality results.
The initial franchise fee is $30,000 for a base territory.
The Carpet Chemist Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | Greater of 8% of Gross Sales or Minimum Monthly Royalty Requirements of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Currently not charged, but reserved right to charge) | National brand fund |
| Total Investment Range | $82,300 – $120,700 | Includes build-out, inventory, working capital |
The investment range of $82K–$121K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of 8% of Gross Sales or Minimum Monthly Royalty Requirements) and marketing fee (2% of Gross Sales (Currently not charged, but reserved right to charge)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Construction and Leasehold Improvements | $0 | $4,000 |
| Lease Deposits – 3 Months | $0 | $3,500 |
| Portable Equipment | $4,500 | $5,500 |
| Equipped Service Vehicle | $11,300 | $16,200 |
| Initial Inventory | $1,000 | $1,500 |
| Computer, Software and Point of Sales System | $2,500 | $3,500 |
| Grand Opening Marketing | $6,000 | $12,000 |
| Insurance Deposits – 3 Months | $1,000 | $2,000 |
| Travel for Initial Training | $1,000 | $3,000 |
| Professional Fees | $1,500 | $2,500 |
| Licenses and Permits | $500 | $1,000 |
| Additional Funds – 3 months | $23,000 | $36,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $100 |
| Technology Fee | Up to $500 per month (Currently not charged, but reserved right to charge) |
| Audit Fee | Cost of audit |
| Franchisee Directed Local Marketing | 2% of Gross Sales per quarter, but not less than $2,000 per quarter plus $500 per month for each Additional Territory |
| Local and Regional Advertising Cooperatives | As established by cooperative members, but not exceeding 2% of Gross Sales |
| Contact Center | Up to 3% of monthly Gross Sales |
| Customer Service and Refunds | Varies under the circumstances |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $750 |
| Additional Employee Initial Training | Our then current training fee, currently $300 per person per day |
| Supplemental Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $300 per day. There is a 2-day minimum for assistance. |
| Non-Compliance: Customer Reviews | $250 to $750 per month |
| Reporting Non-Compliance | $150 per occurrence |
| Operational Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Insurance Review | $1,000 |
| Supplier Review | Our actual costs to review a supplier suggested by you |
| Ongoing Purchases | Varied amounts for required purchases from us or our affiliates |
| Interest | 18% per annum from due date |
| Quality Assurance Audit | Actual costs incurred by us |
| Collections | Actual fees, costs, and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 day period |
| Classroom Training | 48 |
| On-the-Job Training | 32 |
| Training Location | Shelbyville, Kentucky |
| Additional Training | Supplemental on-site training may be required if performance standards are not met, at a rate of $300 per trainer per day plus travel and accommodation expenses. Initial training for replacement operating managers also costs $300 per manager per day. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Approximately 300,000 people for a Base Territory |
| Description | Franchisor will designate a geographic area comprising your operating territory. The scope of your Operating Territory will vary based on local factors, market conditions, and whether additional population or territories are purchased. A Base Territory generally includes a population of up to 300,000 people. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by the franchisor. However, the franchisor will not open or grant another franchisee the right to operate a Carpet Chemist Business within your Operating Territory, provided you are not in default. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | up to 2 additional 10 year renewal terms, for a maximum total of 20 years |
| Renewal Fee | $100 |
| Renewal Conditions | To renew your franchise you must be in compliance with the terms of your Franchise Agreement, provide us with 180 days prior written notice of your request to renew, sign our then current form of franchise agreement and related agreements for the renewal term, sign a general release in our favor, pay a renewal fee, and meet all other renewal requirements contained in the Franchise Agreement. Your Owners must be in compliance with their agreements with us, including the Owner and Spouse Agreement and Guaranty, and they must personally guarantee the terms of your renewal franchise agreement which may contain terms materially different from your current Franchise Agreement. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transfers require our prior written consent, which may be granted or withheld in our discretion. Conditions include providing 30 days prior written notice, satisfying all monetary obligations, transferee agreeing to all terms, transferee's owners and spouses personally guaranteeing terms, executing a general release, transferee completing training, and paying a $10,000 transfer fee. Franchisor may also require the transferee to sign the then-current standard form franchise agreement. |
| Termination for Cause | We can terminate if you are in default of the terms of the Franchise Agreement. Good cause includes failure to pay fees/obligations, failure to pay suppliers, failure to timely lease/open business, failure to comply with operational standards, violation of laws, failure to maintain insurance, reporting non-compliance, operational non-compliance, intentional misrepresentation, abandonment, felony conviction, dishonest conduct, failure to complete training, unauthorized transfer, misuse of marks, or failure to comply with Anti-Terrorism Laws. Cure periods of 10 or 30 days may apply for certain defaults, while others result in automatic termination without cure. |
| Non-Compete Period | 24 months after the expiration or termination of the Franchise Agreement |
| Non-Compete Details | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Operating Territory; a 25-mile radius of your Operating Territory; the operating territory of any other Carpet Chemist Business; and you must comply with confidentiality, non-disclosure and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner must dedicate his or her full time efforts to the management and operation of the Franchised Business. If a manager is hired, they must meet minimum standards, complete initial training, and sign confidentiality and non-competition agreements. All employees with access to confidential information must sign confidentiality agreements. |
| Required Suppliers | We require that you purchase or lease certain source restricted goods and services for the development and operation of your Carpet Chemist Business. Source restricted goods and services are goods and services that must meet our specifications and/or must be purchased from an approved or designated supplier. We may designate a supplier (which may include us or our affiliates) as the exclusive supplier for the System. |
| Supply Restrictions | You may only offer and sell the Approved Services and Products that we designate and you may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing. |
| Franchisor Revenue from Suppliers | We and/or our affiliates may receive rebates, payments and other material benefits from suppliers based on franchisee purchases and we reserve the right to institute and expand rebate programs in the future. During the fiscal year ending December 31, 2021, we did not earn any revenue from approved suppliers based on our franchisees’ purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
The Carpet Chemist Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Carpet Chemist Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Carpet Chemist System Growth
The Carpet Chemist currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 22 states: California, Connecticut, Florida, Hawaii, Illinois, Indiana, Kentucky, Maine, Maryland, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
The Carpet Chemist Franchise — FAQ
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