Chemstation

#472

At a Glance

Products & Services: Industrial cleanser manufacturing & distribution

Number of Locations: 55

Total Investment: $270.45K - 368.45K

Founded: 1965

Began Franchising: 1983

About Chemstation

In the early '80s, George Homan's Dayton, Ohio, distribution company was suffering from the impact of the recession. To combat this, the company began manufacturing its own detergent formulas, delivering the detergent to industrial customers in refillable containers.

Chemstation customers receive free containers that franchisees refill. Franchisees handle all receiving, storing, disposing and rendering of the detergent for their customers.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	47	0	1	7
2011	46	0	0	7
2010	46	0	0	6
2009	49	0	0	5

Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Midwest, Northeast, West.
Franchisor is seeking new units in Canada, Mexico.

Startup Costs, Ongoing Fees and Financing

Total Investment: $270,450 - $368,450
Franchise Fee: $45,000
Ongoing Royalty Fee: 4%
Term of Franchise Agreement: 10 years, renewable

Financial Requirements

Net Worth: $1,000,000
Liquid Cash Available: $300,000 - $500,000

Operations

20% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 6. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: As needed. At franchisee's location: As needed.

Ongoing Support: Newsletter, Meetings, Toll-free phone line, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives

Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,