Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Proprietary Products and Licensed Products may be purchased only from either Culligan or those suppliers Culligan designates.
From the filings
Culligan
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Live signals
Total units
550
438 franchised
Franchised outlet growth
-4.367%
Item 20, last two year-ends
AUV
—
Item 19
Royalty
0.5%–2% component; full terms unconfirmed
percentage component
Ad fund
1%
percentage component
Initial fee
$41K
per unit
Investment range
$130K–$816K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing
Ordinary royalty terms
Complete royalty terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2026)
15% reference
Franchisor behaviours
What the franchisor requires
14 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 16 questions the text does not settle, which is not a no.
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesItem 11
The B.O.B. consists of 10 persons: 4 senior Culligan executives and 6 franchisees that hold leadership positions with DAC, Culligan Dealers’ Association of North America, and other franchisees who actively participate in the operation of their dealership.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
Culligan has the right to add, delete or change any operating policy or the Operating Manual, using its reasonable business judgment as to the needs of the Culligan system.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
240092812Item 8
Approximately $240,092,812_ or 90% of those revenues came from sales of products or services to Culligan’s U.S. Franchised Dealers.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
The aggregate amount of any rebates or other similar consideration collected from any third party suppliers of Authorized Products that are sold to you bearing any of the Proprietary Marks will not in any year exceed 5% of the costs you paid for those products, unless (a) the DAC has previously approved Culligan’s…
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
80Item 8
Culligan estimates that 80% of all purchases and leases of goods and services made by the franchisee in establishing and operating the franchised businesses will be purchases and leases from Culligan, its designees, its approved suppliers, or under Culligan’s specifications.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
Culligan maintains a procedure for seeking approval (and allowing Culligan to exercise its right of disapproval when appropriate) for Products with Required Specifications.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 9
Inspections and audits Sections 5.3, 8.2, 9.10, 9.11 Items 6, 11 t.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
Culligan has the right to add, delete or change any operating policy or the Operating Manual, using its reasonable business judgment as to the needs of the Culligan system.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
The location of your dealership must be within your Territory, and be approved by Culligan.
Marketing
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
See Section 5.3. In 2017 the co-op fee was reduced from 1.5% to 0.5%, but you must instead spend at least 1% of your annual Gross Revenues, except for Gross Revenues derived from Industrial Products and Services and Ancillary Products and Services on local advertising and promotions.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
Culligan has established and maintains local and regional advertising cooperatives for geographic areas (each an “Advertising Cooperative”), in which you must participate.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must designate in writing a Business Manager for your dealership, and your Business Manager will have full time, day-to- day management responsibility for your dealership, exercise on-premises supervision and personally participate in the operation of your dealership.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Refresher training courses for you and/or your employees may be mandatory in relation to the introduction of new products or services, as part of an agreed upon plan to remedy any default under this Agreement or if mandatory training is approved by the DAC for any other purpose, and Culligan may charge a reasonable…
The filing answers no to 4 questions
- Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?Item 11
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 12
- Does the franchisor have independent access to the data in the franchisee's POS or computer system?Item 11
- Is attendance at an annual convention or conference mandatory for the franchisee?Item 11
Ordinary royalty terms
Complete royalty terms are not confirmed.
Source
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Ownership
The portfolio behind Culligan
Ownership: osmosis holdings.
Related Home services brands
Primary franchise filings. Read the original filing for definitions, conditions, and qualifications.