Start a ChemStation Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $324K - $442K

Units as of 2020: 62 6.9% over 3 years

Quality over quantity is what ChemStations strives for!

ChemStation is a cleaning franchise that manufactures environmentally friendly high-quality industrial products. Its key markets include floor care, parts washing, concrete and asphalt, odor control, the food/beverage industry, and vehicle cleaning. The franchise has a unique delivery process with refillable containers at customers' facilities.

Founded in 1965 and franchising since 1983, ChemStation takes part in various industry events relevant to its market. These events include holding exhibits at trade shows such as the International Production and Processing Expo, World of Asphalt, Con-Expo, Craft Brewers Conference, and Process Expo. The company is also a member of the International Sanitary Supply Association, the Craft Brewers Association, the North-American Meat Institute, the Refrigerated Foods Association, and the Food Processing Suppliers Association.

Why You May Want to Start a ChemStation Franchise

Regardless of seasons or business shifts, regular cleaning may be essential for every household to maintain its value. This creates a potential market for cleaning companies. With over 50 franchised units spread across the United States, ChemStation has grown to make its mark. ChemStation can offer franchisees initial facility opening support, site selection, continuous training, and technical support.

Operating with exclusive territories, ChemStation franchisees may be set up to grow their locations. The company operates on business-to-business principles whereby the franchisor sources production materials to the franchisee. Business-to-business occurs when a commercial transaction is made between two businesses. This may allow the franchisee room for space, freedom, and growth.

What Might Make a ChemStation Franchise a Good Choice?

To formulate the ChemStation products, chemical concentrates are provided to franchisees to mix at their locations as needed. Acting as an individual manufacturing center may ensure local delivery, sales, and services for every customer. With this localized manufacturing technique, ChemStation has put in an effort to place itself a step ahead of its competitors.

To be part of the ChemStation team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How To Open a ChemStation Franchise

To get started with the process of opening your very own ChemStation franchise, first submit an inquiry form. If ChemStation views you as a qualified franchisee, you may receive an introductory call to schedule your discovery day and learn more about the franchising opportunity.

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask the ChemStation team questions. Suppose your net worth and available liquid capital match the brand's requirements. In that case, you may qualify to open a ChemStation franchise, and you can get started with an initial investment and relevant training.

It may be a good idea to speak with an attorney or financial advisor in order to ensure that you have the necessary financial resources to own and operate a ChemStation franchise.

Company Overview

About ChemStation

Industry	Maintenance
Related Categories	Miscellaneous Maintenance Businesses, Miscellaneous Retail Businesses, Cleaning/Restoration
Founded	1965
Leadership	Jeff Purks, President & CEO
Corporate Address	3400 Encrete Ln. Dayton, OH 45439
Social	Facebook, Twitter, Instagram

Business Overview

Franchising Since	1983 (41 years)
# of employees at HQ	50
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions:
# of Units	62 (as of 2020)

Information for Franchisees

Here's what you need to know if you're interested in opening a ChemStation franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$50,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$324,000 - $441,500
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$300,000 - $500,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	4%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	to 2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	ChemStation offers in-house financing to cover the following: equipment
Third Party Financing	ChemStation has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

Classroom Training	17 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Social Media Website Development

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	6
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes