Toll Free: (844)39KLEEN (55336)

Franchise Initial Costs and Fees

Becoming a ChemKleen franchisee is an investment in your financial future, with the opportunity for significant profit potential. The numbers associated with becoming a ChemKleen franchisee are particular important to your decision-making process, such that we have set out some of the key numbers below.

Initial Investment

Our initial franchise fee is $35,000, with an the estimated initial investment range of $49,150 to $94,400, provided that you are approved by our equipment financier for a 10 year financing arrangement for the Primary Equipment. Also, if you have a pre-owned vehicle for hauling the Primary Equipment that is in acceptable condition, this is another avoidable initial cost, which should enable you to better focus your time and money on the development of your franchised territory. Finally, with a solid business partner who is actively engaged with you in the operation of the franchised business, you may well be able to defer the cost associated with immediately bringing on employees and/or contractors to carry out the business.

DOWNLOAD a more detailed estimate of potential Initial Franchise Costs.

Royalty Fees

ChemKleen’s royalty fee structure was designed to strengthen the pursuit of new business and produce collaboration between ourselves, our master franchisors and our individual franchisees. As such, we utilize a base royalty fee of 6% of gross sales of our franchisees. However, we have also introduced incentives that rewards business development, such that upon a franchisee’s annual gross sales exceeding $750,000 (subject to inflation) your royalty fee on the excess is reduced to 5.5% of gross sales and should your annual gross sales exceed $1,500,000 (subject to inflation) your royalty fee on the excess is reduced to 5% of gross sales. As such, when you are generating more, we are modifying our royalty fee arrangement to enable you to retain more of your franchise’s revenue.

We also have a supplemental national and regional accounts advanced royalty fee which represents a further 2% of gross sales (plus 0.5% of gross sales for major client account maintenance), which is in addition to our standard royalty fee (and advertising fund), and operates much like a finder’s fee, in that it rewards those parties that acquire new work for other franchisees. So where we, a master franchisor or a franchisee is responsible for procuring a national or regional customer, they become entitled to share in the supplemental national and regional accounts advanced royalty fee as compensation for their procurement of the work that they acquire across multiple franchise territories. Meanwhile, the franchisee paying this supplemental royalty fee has received the benefit of this other party procuring new work from them and our (or the master franchisor’s) ongoing efforts to maintain and expand the relationship with top people of these national and regional customers. As such, this incentive arrangement acts as a win-win for everyone involved on national and regional accounts.

DOWNLOAD a more detailed estimate of potential Franchise Fees.

Net Worth

Given the financing requirements of our equipment financier, a minimum net worth of $500,000 is typically required to effectively support the required leasing and financing of the Primary Equipment. Further securitization and guarantees will be required from our equipment financier, in addition to the possible payment of an initial down payment, dependent upon your net worth and financial history.

Territory / Specialized Elements

Our standard franchise territory is intended to support a population of approximately 800,000 people.

The standard franchise territory however excludes certain specialized polish, cleaning and inspection work, including gas station underground storage tanks and sea ports (and the vessels that dock at those ports).  This specialized work requires specialized equipment and is intended to be separately franchised, although proven franchisees will be given the opportunity to secure these specialized franchises at a marked discount on the applicable franchise fee.

Real Estate / Rental

Franchisees are designed to be operated as home offices, though secure storage of the franchisee’s equipment, vehicle and inventory may require limited real estate rental. As your business operations grow you may well expand your franchise into office space and commercial facilities, however that is a step that can be taken in the feature.

Employees / Contractors

Every team requires a minimum of two people, such that you will either need a dependable business partner, employee or contractor to work with yourself. Even when you assume a greater management role, you should nevertheless maintain your availability to work in the field, or have other people available on short notice, as you will want to keep your team active and maintain customer satisfaction.

Your Role as Franchisee

Not only should you be personally engaged in the polish and cleaning operations at the outset, you will also need to be actively involved in business development and general management activities.


Current Franchise Opportunities

ChemKleen International is presently seeking individual franchisees in Canada, the Tri-State Area (New York – New Jersey – Connecticut) and Nevada, with other locations in the United States and internationally being undertaken in collaboration with our Master Franchisors, such that those individual franchisees get the added attention and commitment associated with a more focused and regionalized upper management that is realizable through a master franchise system.

Please note that we will be in Toronto on May 30, 2018 to conduct interviews with prospective franchisees in Ontario (and upstate New York) and in New York City on June 2 and 3, 2018 for the Tri-State Area of New York, New Jersey and Connecticut, so if you are looking to secure a premium franchise territory and meet the criteria for a ChemKleen franchisee, compete and forward your application form such that we might review it and hopefully book an interview, as meeting times are filling up.

DOWNLOAD Franchisee Application Form – submit completed application by email to franchising@chemkleenint.com or by fax to 888-371-4032.

ChemKleen Canada [Canadian Franchising]
Calgary, Alberta, Canada
Toll free: (844)39 KLEEN (55336)
Phone: 403-267-0038
Fax: 888-371-4032
Email: franchising@chemkleenint.com

ChemKleen International [Global Franchising]
New York, New York, USA
Phone: 646-681-4491
Fax: 888-371-4032
Email: franchising@chemkleenint.com


Disclaimer

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. An offer is made only by a Franchise Disclosure Document (FDD) and other relevant legal documents that we will provide to the prospective franchisees and master franchisors. In the United States of America, the following states currently regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Similarly, in Canada, select provinces regulate the offer and sale of franchises. If you are a resident of or wish to acquire a ChemKleen franchise to be located in a state, province or country whose laws regulate the offer and sale of franchises, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction or we are exempt. Registration or exemption does not constitute approval, recommendation or endorsement of the information in the FDD or our website by any country, province, state or the United States Federal Trade Commission.