Risk Score
Pending analysis
Investment Range
$130,000 - $813,515.37
Min Cash Required
$55,000
Total US Locations
553
Business Summary
Culligan International Company provides water-related products and services, including water treatment, filtration, conditioning, and bottled water, as well as air filtration equipment. Culligan Franchised Dealers operate businesses selling and distributing these products and services to both residential and commercial customers under the Culligan brand name. This involves purchasing products from Culligan or its approved suppliers and reselling them, along with offering related services to the general public.
Corporate History
Culligan International Company, a Delaware corporation, was originally founded in 1936 by Emmett J. Culligan, initially operating as Culligan Zeolite Company, which was incorporated on May 5, 1945. Culligan International Company itself was formed on March 19, 1986, as a successor by merger. Culligan began a dealer program offering water-related products and services over 70 years ago, expanding into household and commercial water conditioning products and services approximately 60 years ago, and distributing drinking water products through its dealers for over 50 years. From 2011 to 2012, Culligan initiated an effort to franchise its company-owned dealerships (CODs). However, it reacquired 31 CODs in August 2018 and has since reacquired an additional 13. Culligan is currently an indirect subsidiary of Osmosis Holdings, LP, with investment funds affiliated with BDT Capital Partners, LLC owning Osmosis Holdings, LP.
Financial Overview
Investment Range
$130,000 - $813,515.37
Franchise Fee (High)
$39,583.38
Minimum Cash Required
$55,000
Minimum Net Worth
$1,000,000
Royalty %
2%
Marketing %
1%
Equipment Costs (Low)
$35,000
Equipment Costs (High)
$650,000
Working Capital
$102,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Culligan Franchise Company's financial statements received an unqualified opinion from independent auditors, indicating that they present fairly its financial position and results of operations. The company reported no tax expense in 2024 and 2023, resulting in a 0% effective rate, and had no deferred tax assets or liabilities. It is noted that administrative service costs are absorbed by its parent company, Culligan International Company, and are not reflected in these financial statements. These allocations are not necessarily indicative of arm's-length transactions, suggesting the financial picture might differ if Culligan Franchise Company operated as a fully independent entity.
Financing Details
Culligan International Company does not offer any direct or indirect financing to its franchisees and does not guarantee any loans or obligations. While Culligan has a program with Aqua Finance, Inc. (AFI) for customer financing, AFI independently offers financing to franchisees without Culligan's involvement in negotiating terms. Culligan does not recommend AFI or any other party for franchisee financing and receives no fees from AFI for loans to franchisees, although it does receive a 1% license fee for AFI's right to use the Culligan name in connection with providing financing to Culligan's customers.
Performance Metrics
Total US Locations
553
Franchised Units
460
Corporate Units
93
Avg Square Footage
3,500
Franchising Since
1954
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Culligan International Company has no litigation history that is required to be disclosed in this document.
Bankruptcy History
Culligan International Company has no bankruptcy history that is required to be disclosed in this document.
Agreement Terms
Initial Term
21 years
Renewal Conditions
To renew their franchise agreement, Culligan International Company franchisees must have fulfilled all material obligations throughout their current term and not be in default at the time of renewal. Additionally, they must not have incurred more than three defaults (either curable or non-curable) within the final two years of the term. Franchisees are also required to sign a Termination and General Release Agreement. The renewal agreement will contain standard provisions for new dealers at that time, which may differ from the original contract. Franchisees have 60 days to sign and return the renewal agreement upon receipt, otherwise, their original agreement will expire.
Training & Support Program
Franchisor Assistance
Culligan International Company provides various forms of assistance to its franchisees. Before opening, Culligan may help with site selection and approves the location, designates authorized products and services, sells initial inventory of Culligan products, defines the territory, and provides an Initial Training Program for the franchisee and their Business Manager. After opening, Culligan sells authorized products to franchisees, replaces/introduces new products with specific pricing terms, manages authorized suppliers, and monitors image and operating standards. It offers ongoing sales and service training classes (optional, with fees), field support, and consultation services (fee-based for additional assistance), and makes qualified laboratories available for water testing. Culligan also maintains a website with linked pages for dealers and provides promotional plans and materials. It helps with compliance for product performance regulations, offers guidance on managing the dealership, and will not unreasonably withhold consent for facility location changes or transfers. Culligan also administers national account, alternative distribution, and multi-dealer programs, including reverse royalties for franchisees under certain conditions.
Training Location
Culligan International Company's training programs are primarily held at its headquarters in Illinois. Some programs may also take place at hotel/meeting room locations or other Culligan dealerships across the United States. Advanced service training courses are exclusively conducted at the headquarters.
Ongoing Support
After opening, Culligan International Company provides ongoing support to its franchisees through periodic sales and service training classes, field support, and consultation services which may involve on-site visits or telephonic/electronic communication (additional fees may apply for certain services). Culligan maintains an official website for the network, including linked web pages for each dealership. It also offers operations guides, information bulletins, and individual consultation on managing the business under the Culligan System. Franchisees are invited to non-mandatory Dealer conventions, typically lasting 3 to 5 days, and 1-day district meetings held at various locations, where current topics, new products, and operational issues are discussed. An optional sales licensing program, with an application fee, is also available for franchisees and their sales personnel.
Franchise Requirements
Ideal Candidate Profile
Culligan International Company seeks franchisees with an entrepreneurial spirit, a genuine interest in water quality, strong financial and cash management abilities, and a commitment to excellent customer service. Ideal candidates are dedicated individuals who possess a strong work ethic and are capable of hard work.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Limited
Staff Count
1
Territory Size Requirements
Culligan International Company defines its franchise territories by estimating the relevant market and establishing an area using indicators such as roads, county lines, or similar boundaries. The franchisor also considers existing territories assigned to other Culligan Dealers. Territory size, along with factors like the number of single-family households and water hardness characteristics, are used to set minimum performance requirements and royalty baselines.
Staffing Notes
Culligan International Company franchisees are required to employ a sufficient number of trained sales and service personnel to meet the demand within their territory. Each dealership must designate a Business Manager who will assume full-time, day-to-day management responsibility, including on-premises supervision and personal participation in the dealership's operations. If a Business Manager's employment ends, the franchisee has 60 days to designate a new one, with an additional 90 days for the new manager to complete any necessary training. Culligan provides various training programs for sales and service personnel, including specialized classes and an optional sales licensing program aimed at consumer protection, water treatment technology, and Culligan products.