DRYMedic Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$65,870 - $318,860
Franchise Fee
$5,000
Min Cash Required
$32,000
Total US Locations
89
Business Summary
DRYMEDIC businesses offer comprehensive residential and commercial restoration services. This includes cleaning, deodorizing, and reconstructing buildings and contents that have been damaged by fire, smoke, water, mold, normal wear, or other causes. Services are categorized into Mitigation Services, Content Services, and Reconstruction Services, providing a full suite of solutions for property damage.
Corporate History
DRYMEDIC was organized as STOP Franchising SPE LLC in Delaware on March 24, 2021. The company initially operated under the name Service Team of Professionals (STOP) until November 15, 2022, when it rebranded to DRYMEDIC. This rebrand followed the acquisition of two Michigan-based restoration companies, DRYMEDIC Restoration Services, LLC and DRYMEDIC Restoration Novi, LLC, by an affiliate on November 4, 2022, after which their intellectual property was transferred to the franchisor. DRYMEDIC became the franchisor of the STOP system on May 14, 2021, as part of a securitization transaction, and began offering STOP franchises on May 17, 2021. Before this, STOP franchises were offered by STOP Franchising, Inc. from April 2017 to May 2021, and by Service Team of Professionals, Inc. (STOP-NV) from November 1996 to November 2017.
Financial Overview
Investment Range
$65,870 - $318,860
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$66,217
Minimum Cash Required
$32,000
Royalty %
7%
Marketing %
1.5%
Equipment Costs (Low)
$80,000
Equipment Costs (High)
$90,000
Working Capital
$44,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
AB Assetco LLC, the parent company of DRYMEDIC (STOP Franchising SPE LLC), received an unqualified audit opinion for its consolidated financial statements as of December 31, 2024 and 2023. This indicates that the financial statements present fairly, in all material respects, the financial position and results of operations. However, the company reported a net loss of $14,362 thousand in 2024 and had a very low cash and cash equivalents balance of $51 thousand at the end of 2024. The notes also mention significant distributions to its Guarantor, amounting to $73,049 thousand in 2024. While the audit opinion is clean, the low cash balance and net loss in the most recent fiscal year are notable.
Financing Details
DRYMEDIC offers direct financing for a portion of the initial franchise fee. Franchisees may finance up to 75% of the standard Franchise Fee, plus any Additional Population Fee, repayable in up to 36 monthly installments at a 12% annual interest rate. Payments begin the first full month after signing the Franchise Agreement. For franchisees participating in the Conversion Incentive Program or Pioneer Incentive Program, DRYMEDIC allows financing of 100% of the Franchise Fee (less a $5,000 down payment). These loans are repaid in 48 monthly installments, but payments do not start until five years after the agreement date. Furthermore, these conversion/pioneer program loans may be eligible for up to 100% forgiveness based on the franchised business's performance in its fifth year of operation. All financed amounts require the franchisee to sign a Promissory Note and Guaranty, and DRYMEDIC will secure a security interest in the assets of the franchised business. Aside from these specific programs, DRYMEDIC does not offer other direct or indirect financing and will not guarantee third-party loans or leases.
Performance Metrics
Total US Locations
89
Franchised Units
67
Corporate Units
22
Avg Square Footage
1,750
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
DRYMEDIC has no litigation cases that are required to be disclosed. The FDD explicitly states that there is no litigation information to report in Item 3, meaning DRYMEDIC has a clean legal record for the reporting period.
Bankruptcy History
DRYMEDIC has no bankruptcy history to report. The FDD explicitly states that no bankruptcy information is required to be disclosed in Item 4, indicating that neither the franchisor nor its key personnel have a history of bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, DRYMEDIC franchisees must provide written notice of their desire to renew between six to twelve months before the current agreement expires. They must be in good standing, meaning no defaults, a good record of customer service, and compliance with Brand Standards, including no litigation with DRYMEDIC. Franchisees will need to sign DRYMEDIC's then-current franchise agreement, pay a renewal fee, and sign a general release of claims. Additionally, the Key Person must complete any required training, franchisees must demonstrate their right to remain at the approved location, and they must remodel or renovate their vehicles and premises to meet current brand standards, as well as update their computer systems.
Training & Support Program
Franchisor Assistance
DRYMEDIC provides various forms of support to its franchisees. Before opening, the franchisor offers an initial training program, assists with ordering initial equipment and technology, provides access to the Operations Manual, helps set up a franchisee portal and a designated call center, and arranges for DASH software installation. DRYMEDIC also provides specifications for fixtures, furnishings, equipment, and signage, and offers opening support. On an ongoing basis, DRYMEDIC makes additional training programs available, maintains Brand Standards, manages the franchisee portal, communicates vendor specifications, and runs a Brand Standards assessment program. The franchisor also manages a Brand Fund to support general brand development, reviews franchisee advertising plans, manages social media accounts, and oversees customer warranty/satisfaction guarantee programs and Key Account relationships. Franchisees are also required to attend an annual convention.
Initial Training Hours
104
Training Location
Online/virtual and Bloomfield, MI
Ongoing Support
After opening, DRYMEDIC franchisees receive ongoing support including access to additional required and optional training programs, continuous development and maintenance of Brand Standards, and management of the franchisee portal. DRYMEDIC notifies franchisees of approved vendors and product specifications, and conducts a Brand Standards assessment program. The franchisor also manages the Brand Fund, which provides creative materials for advertising, and reviews franchisee-proposed advertising plans. Social media accounts are managed by DRYMEDIC, and the franchisor monitors and manages compliance with any customer warranty programs and Key Account relationships. Franchisees are also required to attend an annual convention.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
hands-on
Territory Type
Protected
Staff Count
2
Territory Size Requirements
DRYMEDIC defines a typical territory as having a population of up to 250,000 individuals, determined by postal zip codes. The geographic area of a territory will not exceed 400 square miles and will not extend more than 50 miles between its two farthest points. Franchisees may be permitted to add population to their existing territory at DRYMEDIC's discretion, which may require additional commitments like increased marketing efforts.
Staffing Notes
DRYMEDIC requires franchisees to employ at least one full-time employee dedicated to sales and marketing activities for the franchised business, starting no later than six months after the original opening date. Franchisees are solely responsible for all employment decisions and functions, including recruiting, hiring, and scheduling, and must ensure initial and periodic drug testing and background checks are conducted for employees. DRYMEDIC emphasizes that franchisees are independent contractors and are responsible for their own employees.