About Culligan Franchise
Culligan is one of the most iconic water treatment brands in the world, offering franchise opportunities since 1951.
Each location provides residential and commercial water treatment solutions including water softeners, filtration systems, reverse osmosis units, bottled water delivery, and water testing services.
The brand has been trusted by consumers for over seven decades to improve water quality in homes and businesses.
Culligan Franchise Cost & Fees
Minimum Investment
$130K
Average Investment
$469K
Maximum Investment
$808K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $32,541.11 | One-time payment upon signing |
| Royalty Fee | 2% of prior month’s Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of prior month’s Gross Revenues (Culligan System Advertising Contributions), 0.5% of prior month’s Gross Revenues (Local and Regional Advertising Co-ops), and up to 1% of prior month’s Gross Revenues (Brand Oversight Board Special Initiatives Assessment), all with exceptions for Industrial and Ancillary Products and Services. | National brand fund |
| Total Investment Range | $130,000 – $807,541.11 | Includes build-out, inventory, working capital |
The investment range of $130K–$808K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2% of prior month’s Gross Revenues) and marketing fee (1% of prior month’s Gross Revenues (Culligan System Advertising Contributions), 0.5% of prior month’s Gross Revenues (Local and Regional Advertising Co-ops), and up to 1% of prior month’s Gross Revenues (Brand Oversight Board Special Initiatives Assessment), all with exceptions for Industrial and Ancillary Products and Services.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $32,541.11 |
| Lease and Deposit | $5,000 | $10,000 |
| Opening Inventory | $15,000 | $75,000 |
| Basic Equipment | $35,000 | $150,000 |
| Bottled Water Distribution (if authorized) | $0 | $250,000 |
| Initial Training | $3,000 | $30,000 |
| Office Equipment | $10,000 | $50,000 |
| Advertising | $2,500 | $25,000 |
| Computer Equipment | $3,500 | $25,000 |
| Signs | $1,000 | $10,000 |
| Additional Funds | $55,000 | $150,000 |
| Bottled Water Production Plant Add-on (if authorized) (not including facility modifications) | $200,000 | $350,000 |
| Deionization Plant Add-on (if authorized) (not including facility modifications) | $35,000 | $150,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 1% of gross selling price of the dealership (excluding accounts receivable, inventory and real estate), with a minimum of $1,301.64 and a maximum of $6,508.22. |
| Renewal Fee | Varies, if any. |
| Audit Fee | Varies, if audit reveals understatement of Gross Revenues by more than 4% or other payment failures. |
| Inventory of Culligan® Products | Varies, depending on your need, but between $15,000 and $75,000. |
| Sales Taxes, Trademark License Taxes and Other Taxes | Amount varies, based on services or products furnished to you. |
| Multi-Dealer Reverse Royalty | The amount you may have to pay to another Dealer varies. |
| Refresher/Additional Training | Currently $150 to $750 per attendee, plus you pay your travel, lodging and daily living expenses. |
| Additional Assistance | $0 to $1,000 per Culligan’s employee per day plus travel and daily living expenses. |
| Non-Culligan Industrial Continuing Royalty | 0.5% of your prior month’s Gross Revenues on Non-Culligan Industrial Products and Services. |
| Non-Culligan Small Pack Continuing Royalty | 0.5% of your prior month’s Gross Revenues on Small Pack Water. |
| Water Tests | If from Culligan, ranges from $10 to $2,000 depending on the type of analyses requested. |
| Insurance | Minimum coverage of $2 million per occurrence. |
| Custom Order Cancellation Charge | Varies. |
| Restocking Fee | Varies, but usually 15% of the purchase price of the goods returned. |
| Costs and Attorneys’ Fees | Varies. |
| Indemnification | Varies. |
| IBWA Membership (including NSF inspection) —Bottled Water Production | Currently $5,826.35 annually for all Culligan Bottled Water Producers. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program: Varies, determined by Culligan. Ongoing training programs last from 1/2 day to 1 week. |
| Classroom Training | Varies by program (e.g., Commercial Softener/Filter School: 4 ½ days, Household Sales Boot Camp: 4 ½ days, Regional Sales Training: 4 hours). |
| On-the-Job Training | 0 |
| Training Location | Many programs are held at Culligan’s headquarters in Illinois. They may also be held at hotel/meeting room locations and Culligan dealerships throughout the United States. Advanced service training courses are only held at headquarters. |
| Additional Training | Culligan offers ongoing training, refresher courses (mandatory for new products/services, default remedy, or DAC-approved), and optional materials/services for a fee. Hemodialysis training is required for employees engaging in such activities. Sales licensing program (online self-study and exam) is strongly recommended. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Determined by relevant market, using roads, county lines, or similar indicators as boundaries. |
| Description | For Household Products and Services (including Portable Exchange and Drinking Water) and Bottled Water Distribution, franchisees receive territorial exclusivity within their designated Territory. However, this is subject to exceptions including sales of vended water, bottled water products under 2 gallons, sales to National Account Customers, sales through Alternative Distribution Channels, Multi-Dealer Sales, certain Dealer-to-Dealer sales, sales by non-compliant dealers, and sales to customers of acquired competitors. Commercial Products & Services, Industrial Products & Services, DI Regeneration, Bottled Water Production, and Hemodialysis are not subject to any territorial protections. Franchisees must operate from an approved location within their Territory and promote/sell Restricted Products and Services only within it. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Usually 20 years |
| Renewal Term | Varies, as per current renewal agreement. |
| Renewal Fee | Varies, if any. |
| Renewal Conditions | Franchisee can renew if: (a) all material obligations performed throughout the term, no default at renewal, and no more than 3 defaults (curable or non-curable) in the final 2 years; (b) execution of a Termination and General Release Agreement; and (c) no written notice from Culligan of failure to meet renewal conditions. Franchisee has 60 days to sign and return the new agreement. |
| Transfer Fee | 1% of gross selling price of the dealership (excluding accounts receivable, inventory and real estate), with a minimum of $1,301.64 and a maximum of $6,508.22. |
| Transfer Conditions | Transfers require franchisor's written consent. Conditions include: proposed transferee meeting reasonable qualifications (skills, financial, ethics, etc.), Business Manager completing training, Key Employee transfers not exceeding 40% interest, transferee signing Confidentiality/Non-Competition Agreement and Guarantee (if 25%+ equity), transferor curing defaults, transferor and equity holders executing Termination and General Release Agreement, and transferee executing an agreement to be bound by the Franchise Agreement. Franchisor has a right of first refusal for third-party transfers. |
| Termination for Cause | Culligan may terminate without opportunity to cure for: failure to commence operations within 180 days or abandonment; material misrepresentation; failure to meet Minimum Performance Requirements after cure period; felony conviction or crime adversely affecting the brand; failure to cure advertising breach within 10 days; unauthorized use of Proprietary Marks; failure to maintain required insurance after 10 days; threat to public health/safety; non-compliance with non-compete/confidentiality; failure to comply with transfer restrictions; concealing revenues/false reports; failure to timely pay amounts due (5-day cure) or 4+ payment failures in 5 years; failure to cure legal/regulatory non-compliance; failure to provide authorized services for National Accounts/Alternative Distribution Channels after 30-day notice. For other defaults, franchisee has 30 days to cure (extendable by 60 days if commercially impractical). |
| Non-Compete Period | During the term of the Franchise Agreement and for 2 years after termination. |
| Non-Compete Details | During the term, franchisee cannot directly or indirectly engage in any competitive business (selling substantially similar products/services) as proprietor, partner, investor, director, etc., without prior written agreement. Cannot divert business. Owners of 5% or less of publicly traded competitive businesses are exempt. Business Manager and other key personnel must sign Confidentiality/Non-Competition Agreements. After termination, for 2 years, franchisee cannot solicit Culligan or affiliate personnel. Violation results in irreparable harm, and injunctive relief is consented to. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must personally supervise the dealership and devote full time and best efforts. A Business Manager must be designated, having full-time, day-to-day management responsibility, on-premises supervision, and personal participation. If the Business Manager leaves, a new one must be designated within 60 days and complete training within an additional 90 days. Owners of 25% or more equity must sign a guarantee unless specific net worth and insurance criteria are met. |
| Required Suppliers | Proprietary Products and Licensed Products may be purchased only from either Culligan or those suppliers Culligan designates. Culligan is the only supplier for most household and commercial water treatment equipment. Authorized Culligan bottled water producers, including Culligan’s bottled water production facilities and those of Culligan’s Affiliates, are the only approved sources of supply for Culligan bottled water. |
| Supply Restrictions | You will offer and sell only those proprietary and trademarked products that Culligan designates as part of the Culligan System within your categories of Authorized Products and Services. You may not allow any third party to use the Proprietary Marks on any product. Any items identified with the Proprietary Marks must be purchased from approved suppliers. |
| Franchisor Revenue from Suppliers | For the period from January 1, 2020, to December 31, 2020, Culligan International Company had total revenues of $185,748,026. Approximately $156,446,818 or 84% of those revenues came from sales of products or services to Culligan’s U.S. Franchised Dealers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Culligan does not offer direct or indirect financing to franchisees. However, Culligan has a financing program with Aqua Finance, Inc. (AFI) for customer purchases, operating under 'Culligan Finance Company'. AFI also independently offers financing to dealers, but Culligan has no arrangement with AFI or any other party to offer dealer financing and does not recommend it. Culligan receives a 1% license fee from AFI for the right to use the Culligan name in connection with customer financing. |
Culligan Franchise Earnings — Item 19
Culligan does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Culligan does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Culligan Litigation & Risk Flags
Clean Litigation RecordCulligan has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Culligan System Growth
Total Units
552
Franchised
521
Company-Owned
31
Culligan currently operates 521 franchised locations and 31 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 6 | 31 | 529 |
| 2019 | 3 | 9 | 523 |
| 2020 | 4 | 6 | 521 |
Transfers: 35 | Closures: 46
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$185.7M
Culligan Franchise — FAQ
The total investment to open a Culligan franchise ranges from $130,000 to $807,541.11, per their Franchise Disclosure Document. This includes the initial franchise fee of $32,541.11. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Culligan charges a royalty fee of 2% of prior month’s Gross Revenues of gross sales, plus a 1% of prior month’s Gross Revenues (Culligan System Advertising Contributions), 0.5% of prior month’s Gross Revenues (Local and Regional Advertising Co-ops), and up to 1% of prior month’s Gross Revenues (Brand Oversight Board Special Initiatives Assessment), all with exceptions for Industrial and Ancillary Products and Services. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Culligan Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Culligan to ensure you have the most up-to-date version.
Culligan does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Culligan has been franchising since 1951. The FDD shows an investment range of $130,000-$807,541.11, a 2% of prior month’s Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $32,541.11 and the total investment ranges from $130,000 to $807,541.11 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Culligan and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Culligan or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com