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Below is an in-depth analysis and side-by-side comparison of Chemstation vs Proforma including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $324,000 - $441,500 | $44,030 - $59,695 |
Franchise Fee | $50,000 | $34,500 |
Royalty Fee | 4% | 5-8% |
Advertising Fee | to 1% | 0.25% -1% |
Year Founded | 1965 | 1978 |
Year Franchised | 1983 | 1986 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | Proforma is seeking individuals with good marketing, relationship building and sales skills. Industry knowledge or background is not necessary as product knowledge is taught during our training program. |
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Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | Yes/Yes | No/No |
Equipment | Yes/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | Yes/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 40 hours Classroom Training: 20 hours | Proforma Franchise Owners are provided with comprehensive training, proven marketing and sales techniques, and business development tools at Proforma's Success University, in an excellent week-long training program at the Worldwide Support Center in Cleveland, Ohio. Classroom Training: 25 hours Additional Training: At regional/annual convention |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Field Operations Site Selection Proprietary Software | Ongoing Support Newsletter Meetings/Conventions Toll-Free Line Online Support Proprietary Software Franchisee Intranet Platform |
Marketing | Social media Website development | - |
Operations |
2% 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) | Number of Employees Required to Run: 1 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
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.