In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an All Dry Services franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an All Dry Services franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned All Dry Services outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the All Dry Services franchise opportunity

Section V – Presentation and analysis of All Dry Services’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 gross revenue, disclosed expenses (advertising/marketing/referrals, materials/equipment rental, payroll and fees, education – tuition and seminars, equipment repairs and maintenance, vehicle repairs and maintenance, fuel – vehicles, insurance – vehicle and general liability, permits and licenses, communications, accounting and audit fees, bank fees, imputed royalty fees, imputed brand fund fees), gross revenue less disclosed expenses, utilities, facility rent, and gross revenue less disclosed expenses, utilities, and rent for the franchisor’s affiliate, All Dry Services, LLC, based in Jupiter, Florida

• 2023 average, median, high, and low gross revenue for the top third, middle third, bottom third, and all 83 All Dry Services outlets (one corporate outlet and 82 franchised outlets) that operated continuously for the entire 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the All Dry Services franchise opportunity (exclusive content for Platinum subscribers)

Section I – All Dry Services Franchise Costs

• Initial Franchise Fee:  $49,500
• Rent and Lease Security Deposit:  $0 to $3,750
• Utilities:  $0 to $500
• Leasehold Improvements:  $0 to $2,000
• Employee Uniforms and Marketing Materials:  $2,000 to $3,500
• Furniture and Fixtures:  $5,000 to $20,000
• Computer Systems:  $299 to $2,000
• Insurance:  $4,000 to $8,000
• Vehicle:  $1,000 to $85,000
• Signage:  $0 to $1,000
• Office Expenses:  $0 to $1,000
• Equipment and Consumables:  $30,000 to $50,000
• Licenses and Permits:  $300 to $2,000
• Dues and Subscriptions:  $100 to $1,000
• Technology Fee (for first 3 months):  $1,200
• Professional Fees (lawyer, accountant, etc.):  $1,500
• Travel, Lodging, and Meals for Initial Training:  $1,000 to $5,000
• Additional Funds (for first 3 months):  $10,000 to $75,000
• Total Estimated All Dry Services Franchise Costs:  $105,899 to $311,950

Section II – All Dry Services’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,500
• Royalty:  7% of Gross Sales, subject to a minimum weekly Royalty Fee of $125 per Territory beginning in your 13th month of operation
• Brand Fund Contribution:  1% of Gross Sales
• Local Advertising:  4% of Gross Sales
• Market Cooperative Contribution:  as determined by co-op; currently, none

Section III – Number of Franchised and Company-Owned All Dry Services Outlets

Franchised

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  46
• Net Change:  +44

2022

• Outlets at the Start of the Year:  46
• Outlets at the End of the Year:  116
• Net Change:  +70

2023

• Outlets at the Start of the Year:  116
• Outlets at the End of the Year:  116
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the All Dry Services Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the All Dry Services Franchise (Item 19, 2024 FDD)

Part 1 – Corporate Outlet

• The franchisor’s affiliate, All Dry Services, LLC, has operated a business of the type offered in the Disclosure Document in Jupiter, Florida since April of 2014 (the “Corporate Outlet”). The Corporate Outlet operated continuously from January 1, 2023 to December 31, 2023 (the “2023 Calendar Year”) and provided services within an area consisting of an estimated 370,000 people, which is approximately equal to one and a half territories under the Disclosure Document.

• The Corporate Outlet did not pay the franchisor an initial franchise fee and has not paid the franchisor royalty fees or brand marketing fund fees.

• The Corporate Outlet also maintains a physical location for its business and incurs applicable expenses for rent (“Facility Rent”) and utilities (“Utilities”). All Dry franchisees are not required to obtain a physical location and are expected to operate their franchises from their homes.

• The Corporate Outlet’s Insurance expense in the chart below includes approximately $15,572.78 related to the owner’s personal insurance policies.

• Other than these differences, there are no material differences between the Corporate Outlet and the franchise concept offered under the Disclosure Document.

• The chart below includes the Corporate Outlet’s actual, historical Gross Revenue earned and certain Disclosed Expenses incurred during the 2023 Calendar Year. The Imputed Royalty Fees and Imputed Brand Fund Fees are not historical data but have been calculated as 7% and 1% of the Corporate Outlet’s Gross Revenue and imputed into the chart.

Corporate Outlet Profit and Loss Statement (2023 Calendar Year)

Gross Revenue:  $2,523,775 (100%)

Expenses

• Advertising/Marketing/Referrals:  $48,685 (1.93%)
• Materials/Equipment Rental:  $90,947 (3.60%)
• Payroll and Fees:  $833,612 (33.03%)
• Education – Tuition and Seminars:  $2,500 (0.10%)
• Equipment Repairs and Maintenance:  $3,395 (0.13%)
• Vehicle Repairs and Maintenance:  $4,678 (0.19%)
• Fuel – Vehicles:  $38,113 (1.51%)
• Insurance – Vehicle and General Liability:  $49,808 (1.97%)
• Permits and Licenses:  $454 (0.02%)
• Communications:  $7,202 (0.29%)
• Accounting and Audit Fees:  $21,508 (0.85%)
• Bank Fees:  $2,191 (0.09%)
• Imputed Royalty Fees:  $176,664 (7.00%)
• Imputed Brand Fund Fees:  $25,238 (1.00%)
• Total Disclosed Expenses:  $1,304,994 (51.71%)

Gross Revenue Less Disclosed Expenses:  $1,218,781 (48.29%)

Utilities:  $16,507 (0.65%)

Facility Rent:  $13,292 (0.53%)

Gross Revenue Less Disclosed Expenses, Utilities, and Facility Rent:  $1,188,983 (47.11%)

Part 2 – Corporate Outlet and 2023 Disclosed Franchises Gross Revenue

• As of December 31, 2022, there were 116 All Dry franchised businesses open and operating (the “2022 Franchises”) in addition to the one Corporate Outlet.

• Fourteen of the 2022 Franchises closed during the 2023 Calendar Year and are excluded from the chart below because they did not operate for the entire year.

• Eight of the 2022 Franchises underwent transfers during the 2023 Calendar Year and have been excluded from the chart below due to the changes in ownership they went through.

• Twelve of the 2022 Franchises were non-compliant in that they did not report Gross Revenue to All Dry through QuickBooks, and All Dry has excluded these 12 businesses from the chart below because the Gross Revenue figures All Dry obtained from their CRM software are not reliable.

• The remaining 82 2022 Franchises operated continuously for the entire 2023 Calendar Year (the “2023 Disclosed Franchises”). The 2023 Disclosed Franchises ranged in size from one to 26 Territories with an average of four Territories.

• There were 21 new All Dry franchised businesses that opened during the 2023 Calendar Year, but All Dry has excluded them from the chart below because they did not operate for the entire year.

• The chart below discloses the Gross Revenue from the 82 2023 Disclosed Franchises and the one Corporate Outlet over the 2023 Calendar Year.

• This data was reported to All Dry from the 2023 Disclosed Franchises’ and Corporate Outlet’s QuickBooks and has not been independently audited.

Corporate Outlet and Franchised Outlets Gross Revenue (2023 Calendar Year)

All (83 Outlets)

• Average Gross Revenue:  $479,065.89
• Median Gross Revenue:  $362,050.60
• High Gross Revenue:  $2,523,775.00
• Low Gross Revenue:  $85,184.16
• Number and Percentage of Outlets That Met or Exceeded the Average Gross Revenue:  26 (31.33%)

Top Third (27 Outlets)

• Average Gross Revenue:  $898,559.60
• Median Gross Revenue:  $746,631.60
• High Gross Revenue:  $2,523,775.00
• Low Gross Revenue:  $474,540.50
• Number and Percentage of Outlets That Met or Exceeded the Average Gross Revenue:  9 (33.33%)

Middle Third (28 Outlets)

• Average Gross Revenue:  $372,636.73
• Median Gross Revenue:  $364,883.75
• High Gross Revenue:  $472,517.30
• Low Gross Revenue:  $300,364.40
• Number and Percentage of Outlets That Met or Exceeded the Average Gross Revenue:  12 (42.86%)

Bottom Third (28 Outlets)

• Average Gross Revenue:  $180,983.25
• Median Gross Revenue:  $183,282.00
• High Gross Revenue:  $283,991.50
• Low Gross Revenue:  $85,184.16
• Number and Percentage of Outlets That Met or Exceeded the Average Gross Revenue:  14 (50%)

• “Gross Revenue,” as used in this Item 19, has the same meaning as “Gross Sales,” as used in the Disclosure Document and the Franchise Agreement, which means the total dollar amount of all sales generated through the business for a given period, including, but not limited to, payment for any services or products sold by the business, whether for cash or credit, but excluding (i) bona fide refunds to customers, (ii) sales taxes collected by the business, and (iii) sales of used equipment not in the ordinary course of business.

Section VI – All Dry Services Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️