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Below is an in-depth analysis and side-by-side comparison of Chemstation vs Elephant House 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 | $28,000 - $44,500 |
Franchise Fee | $50,000 | $10,200 |
Royalty Fee | 4% | 0 |
Advertising Fee | to 1% | - |
Year Founded | 1965 | 1991 |
Year Franchised | 1983 | 1991 |
Term Of Agreement | 10 years | 7 years |
Term Of Agreement | 10 years | 7 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | Yes/Yes | No/No |
Equipment | Yes/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 40 hours Classroom Training: 20 hours | As needed |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Field Operations Site Selection Proprietary Software | Newsletter, Toll-free phone line |
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) |
Franchise can be run from home. 5% of all franchisees own more than one unit
100% of current franchisees are owner/operators |
Expansion Plans |
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US Expansion | 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.
Greeting card publisher and distributor Elephant House provides greeting cards to customers worldwide. Franchisees for the company set up racks in a range of retail locations, selling cards from Elephant House's three lines on consignment.