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Entrepreneur: Start & Grow Your Business

Chemstation

Industrial cleanser manufacturing & distribution

Background

Founded: 1965 Franchising since: 1983
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.

3400 Encrete Ln.
Dayton, Ohio 45439
Phone:
(937)294-8265


Franchisor is a privately-held company with 46 employee(s); 2 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 49 0 0 5
2008 49 1 0 5
2007 49 1 0 5
2006 49 1 0 5
2005 47 0 0 5

Where Seeking Franchisees
In the U.S. Midwest, Northeast, West
Outside the U.S.: Canada

Exclusive territories available.

Special Programs
Each territory in the Chemstation network determines which charities they will support. In Dayton, the president participates in fund-raising activities for AIDS charities and serves Thanksgiving dinner to the homeless.

Costs and Fees

Total investment: $500K-700K
Franchise fee: $45K
Ongoing royalty fee: 4%
Term of agreement: 10 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No No
Startup Costs No No
Equipment No No
Inventory No No
Accounts Receivable No No
Payroll No No

Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $300K-500K
Business Experience:
  • Marketing skills

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)

Training and Support

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

Rankings

Franchise 500® rank:
#493 (2006); #305 (2005);

America's Top Global Franchises:
#191 (2005);