Culligan Franchise FDD, Costs & Fees (2025)

Culligan provides water treatment solutions, including water softeners, filtration systems, and drinking water systems, to improve the quality and taste of water for residential and commercial customers.

Culligan International is a global water-treatment franchise founded in 1986 by Emmett J. Culligan in Northbrook, Illinois. The company is headquartered in Rosemont, Illinois, and operates in more than 90 countries through over 1,000 dealers.

It began franchising the same year, with its first dealership in Wheaton, Illinois.

Culligan sells water softeners, whole-house filters, reverse-osmosis systems, bottled and bottleless water coolers, along with commercial and industrial water solutions. It holds over 200 patents and emphasizes customized water solutions, supported by a certified testing laboratory and ongoing research and development.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee$0 – $38,515.37
Lease and Deposit$5,000 – $10,000
Opening Inventory$15,000 – $75,000
Bottled Water Production Plant Add-on (if authorized)$200,000 – $350,000
Deionization Plant Add-on (if authorized)$35,000 – $150,000
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
Totals$130,000 – $813,515.37

Franchise Disclosure Document

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Training

Culligan provides a structured training program designed to equip new franchisees with essential operational knowledge and support. Here are the key training components:

  1. Initial Training Program
    Before launching the dealership, new Culligan franchisees and two of their staff members must complete an initial training program. This training is included in the initial franchise fee and covers the Culligan System, operations, and product knowledge. If the dealership engages in specialized activities such as hemodialysis, additional training is required.
  2. Training for Additional Personnel
    If franchisees need to train more than the three included individuals or have staff changes, additional training is provided at a cost of $100 per person per day, adjusted for inflation. Franchisees are responsible for all related travel, lodging, meals, and living expenses for their trainees.
  3. Ongoing and Refresher Training
    Culligan may offer or require refresher courses for franchisees and their employees, especially when new products or services are introduced. These courses aim to keep franchisees updated with operational and technical changes and are detailed in the system’s manual.

Territory Protection

Culligan provides territory protection to its franchisees, but with several conditions and exceptions. Franchisees are granted a defined “Territory” where Culligan agrees not to open or authorize another dealership selling the same restricted products and services.

These restrictions are outlined in the Franchise Agreement and apply only to specific categories of products such as household services and bottled water distribution. However, this protection is not absolute.

Culligan reserves rights to continue operations or sales under previous agreements, sell certain small bottled products, and allow exceptions such as sales through national accounts or alternative distribution channels.

Number of units

2025
Franchised units

512

478

460

Company-owned units

46

80

93

Total units

558

558

553

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