Source: FranopolisCULLIGAN
The Business
SourcesCulligan has been in the business of manufacturing, selling and licensing water-related products and services since 1936 when Emmett J. Culligan founded the business.
2026 FDD · PDF Page 10 · Item 1 · View Source
Read More About The Business
The franchise offered is the right to supply certain authorized water-related products and services and air filtration equipment under Culligan’s proprietary marks and to conduct business under an authorized trade name that uses the “Culligan” name.
2026 FDD · PDF Page 1 · Item 1 · View Source
Culligan International Company is directly owned by AI Aqua Merger Sub, Inc., which in turn is an indirect subsidiary of the ultimate parent, Osmosis Holdings, LP.
2026 FDD · PDF Page 9 · Item 1 · View Source
Read Source Excerpts
Culligan has been in the business of manufacturing, selling and licensing water-related products and services since 1936 when Emmett J. Culligan founded the business.
The franchise offered is the right to supply certain authorized water-related products and services and air filtration equipment under Culligan’s proprietary marks and to conduct business under an authorized trade name that uses the “Culligan” name.
Source NotesCulligan International Company is directly owned by AI Aqua Merger Sub, Inc., which in turn is an indirect subsidiary of the ultimate parent, Osmosis Holdings, LP.
What It Costs
SourcesWhere Your Startup Money Goes
| Cost | Disclosed Amount | Source |
|---|---|---|
| Computer Equipment | $3,500 to $25,000 | 2026 FDD · PDF Page 21 Computer Equipment 12 $3,500 to $25,000 |
| Advertising | $2,500 to $25,000 | 2026 FDD · PDF Page 21 Advertising 11 $2,500 to $25,000 |
| Signs | $1,000 to $10,000 | 2026 FDD · PDF Page 21 Signs $1,000 to $10,000 |
| Initial Training | $3,000 to $30,000 | 2026 FDD · PDF Page 21 Initial Training 9 $3,000 to $30,000 |
| Additional Funds | $55,000 to $150,000 | 2026 FDD · PDF Page 21 Additional Funds 13 $55,000 to $150,000 |
| Bottled Water Production Plant Add-on | $200,000 to $350,000 | 2026 FDD · PDF Page 21 Bottled Water Production Plant Add-on (if authorized) (not including facility modifications) 15 $200,000 to $350,000 |
| Deionization Plant Add-on | $35,000 to $150,000 | 2026 FDD · PDF Page 21 Deionization Plant Add-on (if authorized) (not including facility modifications) 16 $35,000 to $150,000 |
| Bottled Water Distribution | $0 to $250,000 | 2026 FDD · PDF Page 21 Bottled Water Distribution (if authorized) 8 $0 to $250,000 |
| Culligan Lease and Deposit | $5,000 to $10,000 | 2026 FDD · PDF Page 20 Culligan Lease and Deposit 5 $5,000 to $10,000 |
| Opening Inventory | $15,000 to $75,000 | 2026 FDD · PDF Page 20 Opening Inventory 6 $15,000 to $75,000 |
| Initial Franchise Fee | $0 to $40,601 | 2026 FDD · PDF Page 20 Initial Franchise Fee 3, 4 $0 to $40,601.18 |
| Office Equipment | $10,000 to $50,000 | 2026 FDD · PDF Page 21 Office Equipment 10 $10,000 to $50,000 |
| Totals | $130,000 to $815,601 | 2026 FDD · PDF Page 21 Totals 14 $130,000 to $815,601.18 |
| Basic Equipment | $35,000 to $150,000 | 2026 FDD · PDF Page 21 Basic Equipment 7 $35,000 to $150,000 |
Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.
SourcesKey Franchise Fees
- Initial Franchise Fee
View Disclosed Terms
Except as provided below, if you are a new Franchised Dealer, you must pay Culligan a non-refundable initial franchise fee of $40,601.18 (“Initial Franchise Fee”), less the amount of any non-refundable fee you paid Culligan when you gave Culligan your application.
2026 FDD · PDF Page 15 · Item 5
Review Fee Sources
Fees And Payment Terms
| Fee | Disclosed Terms | Source |
|---|---|---|
| Refresher/Additional Training | Refresher/Additional Training A fee to cover our expenses of providing the training, plus you pay your travel, lodging and daily living expenses. Currently the fee is between $150 and $750. | 2026 FDD · PDF Page 17 |
| Inventory of Culligan Products | Inventory of Culligan ® Products Varies, depending on your need, but between $15,000 and $75,000. | 2026 FDD · PDF Page 16 |
| Water Tests | Water Tests * If from Culligan, ranges from $10 to $2,000 depending on the type of analyses requested. | 2026 FDD · PDF Page 17 |
| IBWA Membership | IBWA Membership (including NSF inspection) —Bottled Water Production Currently $7,448.15 annually for all Culligan Bottled Water Producers. | 2026 FDD · PDF Page 18 |
| Restocking Fee | Restocking Fee Varies, but usually 15% of the purchase price of the goods returned. | 2026 FDD · PDF Page 18 |
| Opening Inventory | Culligan estimates that most Dealers who are establishing a dealership (instead of purchasing an existing dealership) will have an opening inventory ranging between $15,000 and $75,000, although this is not considered a cap on the maximum you could spend. | 2026 FDD · PDF Page 16 |
| Non-Culligan Industrial Continuing Royalty | Non-Culligan Industrial Continuing Royalty 0.5% of your prior month’s Gross Revenues 1 on Non-Culligan Industrial Products and Services 2 . | 2026 FDD · PDF Page 17 |
| Non-Culligan Small Pack Continuing Royalty | Non-Culligan Small Pack Continuing Royalty 0.5% of your prior month’s Gross Revenues 2 on Small Pack Water. | 2026 FDD · PDF Page 17 |
| Brand Oversight Board Special Initiatives Assessment | Brand Oversight Board (“B.O.B.”) Special Initiatives Assessment* Up to 1% of prior month’s Gross Revenues 1 , except Gross Revenues from Industrial Products and Services 2 and from Ancillary Products and Services 3 . | 2026 FDD · PDF Page 17 |
| Administrative Transfer Fee | Administrative Transfer Fee 1% of gross selling price of the dealership (excluding accounts receivable, inventory and real estate), with a minimum of $1,624.05 and a maximum of $8,120.24. | 2026 FDD · PDF Page 17 |
| Additional Assistance | Additional Assistance $0 to $1,000 per Culligan’s employee per day plus travel and daily living expenses. | 2026 FDD · PDF Page 17 |
| Local and Regional Advertising Co-ops | Local and Regional Advertising Co-ops 0.5% of prior month’s Gross Revenues 1 , except Gross Revenues from Industrial Products and Services 2 and from Ancillary Products and Services 3 . | 2026 FDD · PDF Page 16 |
| Initial Franchise Fee | Except as provided below, if you are a new Franchised Dealer, you must pay Culligan a non-refundable initial franchise fee of $40,601.18 (“Initial Franchise Fee”), less the amount of any non-refundable fee you paid Culligan when you gave Culligan your application. | 2026 FDD · PDF Page 15 |
| Culligan System Advertising Contributions | Culligan System Advertising Contributions 1% of prior month’s Gross Revenues 1 , except Gross Revenues from Industrial Products and Services 2 and from Ancillary Products and Services 3 . | 2026 FDD · PDF Page 16 |
| Continuing Royalty | Continuing Royalty 2% of prior month’s Gross Revenues 1 on Authorized Products and Services, except you will pay Culligan 0.5% of Gross Revenues on Industrial Products and Services 2 and on Ancillary Products and Services 3 . | 2026 FDD · PDF Page 16 |
Some fees apply only to a specific event or service. These are not all monthly expenses.
SourcesTraining & Support
SourcesIf you are a start-up business, you must fulfill all of your pre-opening obligations and open your dealership and start operations at an approved location within 180 days after you sign the Franchise Agreement.
2026 FDD · PDF Page 32 · Item 11 · View Source
Read The Disclosed Requirements
You must install and maintain at least 1 computer at the dealership running Microsoft Windows 7 or higher compatible operating system.
2026 FDD · PDF Page 27 · Item 11 · View Source
You may use any Internet service provider that permits you to transmit and receive electronic files and e-mail with an upload file rate of at least.5 megabytes per second.
2026 FDD · PDF Page 27 · Item 11 · View Source
Read Source Excerpts
If you are a start-up business, you must fulfill all of your pre-opening obligations and open your dealership and start operations at an approved location within 180 days after you sign the Franchise Agreement.
You must install and maintain at least 1 computer at the dealership running Microsoft Windows 7 or higher compatible operating system.
Source NotesYou may use any Internet service provider that permits you to transmit and receive electronic files and e-mail with an upload file rate of at least .5 megabytes per second.
Franchisor Financing
SourcesThe franchisor does not offer direct or indirect financing. The franchisor does not guarantee your note, lease or obligation.
2026 FDD · PDF Page 30 · Item 10 · View Source
Read Source Excerpts
Source NotesWe do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.
The Franchise Network
SourcesReported At Year-End 2024
| Year | Franchised At Year-End | Company-Owned At Year-End | Total At Year-End | Source |
|---|---|---|---|---|
| 2023 | 475 | 79 | 554 | 2026 FDD · PDF Page 64 · Item 20 |
| 2024 | 458 | — | — | 2026 FDD · PDF Page 64 · Item 20 |
These are reported outlet counts, not available territories or a measure of profitability. A dash means a count is not available in this record.
Review The Source Figures
2023 Year-End Counts
Franchised 2023 510 475 -35
Company-Owned 2023 46 79 +33
Total Outlets 2023 556 554 -2
2024 Year-End Counts
SourcesFranchised 2024 475 458 - 17
Inside The FDD
SourcesPlain-language summaries of the available FDD information. Each summary links to its source, with original excerpts available to review.
Sources
The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.
01The Business And Its Ownership
Culligan has been in the business of manufacturing, selling and licensing water-related products and services since 1936 when Emmett J. Culligan founded the business.
2026 FDD · PDF Page 10 · Item 1 · View Source
The franchise offered is the right to supply certain authorized water-related products and services and air filtration equipment under Culligan’s proprietary marks and to conduct business under an authorized trade name that uses the “Culligan” name.
2026 FDD · PDF Page 1 · Item 1 · View Source
Culligan International Company is directly owned by AI Aqua Merger Sub, Inc., which in turn is an indirect subsidiary of the ultimate parent, Osmosis Holdings, LP.
2026 FDD · PDF Page 9 · Item 1 · View Source
Read Source Excerpts
Culligan has been in the business of manufacturing, selling and licensing water-related products and services since 1936 when Emmett J. Culligan founded the business.
The franchise offered is the right to supply certain authorized water-related products and services and air filtration equipment under Culligan’s proprietary marks and to conduct business under an authorized trade name that uses the “Culligan” name.
Source NotesCulligan International Company is directly owned by AI Aqua Merger Sub, Inc., which in turn is an indirect subsidiary of the ultimate parent, Osmosis Holdings, LP.
03Disclosed Legal Proceedings
This FDD reports no litigation that requires disclosure under Item 3.
2026 FDD · PDF Page 15 · Item 3 · View Source
Read Source Excerpts
Source NotesNo litigation is required to be disclosed in this Item.
10Financing Offered By The Franchisor
The franchisor does not offer direct or indirect financing. The franchisor does not guarantee your note, lease or obligation.
2026 FDD · PDF Page 30 · Item 10 · View Source
Read Source Excerpts
Source NotesWe do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.
11Support, Training And Advertising
If you are a start-up business, you must fulfill all of your pre-opening obligations and open your dealership and start operations at an approved location within 180 days after you sign the Franchise Agreement.
2026 FDD · PDF Page 32 · Item 11 · View Source
You must install and maintain at least 1 computer at the dealership running Microsoft Windows 7 or higher compatible operating system.
2026 FDD · PDF Page 27 · Item 11 · View Source
You may use any Internet service provider that permits you to transmit and receive electronic files and e-mail with an upload file rate of at least.5 megabytes per second.
2026 FDD · PDF Page 27 · Item 11 · View Source
Read Source Excerpts
If you are a start-up business, you must fulfill all of your pre-opening obligations and open your dealership and start operations at an approved location within 180 days after you sign the Franchise Agreement.
You must install and maintain at least 1 computer at the dealership running Microsoft Windows 7 or higher compatible operating system.
Source NotesYou may use any Internet service provider that permits you to transmit and receive electronic files and e-mail with an upload file rate of at least .5 megabytes per second.
14Patents, Copyrights And Proprietary Information
The Culligan System, as an entire business operating format, is confidential and proprietary to Culligan.
2026 FDD · PDF Page 50 · Item 14 · View Source
Read Source Excerpts
Source NotesThe Culligan System, as an entire business operating format, is confidential and proprietary to Culligan.
16Products And Services You Can Sell
New Franchised Dealers will not be allowed to operate businesses that offer Non-Culligan Industrial Products and Services.
2026 FDD · PDF Page 26 · Item 16 · View Source
If Culligan has authorized you to distribute bottled water, you must purchase it only from licensed or franchised Culligan bottled water producers.
2026 FDD · PDF Page 54 · Item 16 · View Source
Read Source Excerpts
New Franchised Dealers will not be allowed to operate businesses that offer Non-Culligan Industrial Products and Services.
Source NotesIf Culligan has authorized you to distribute bottled water, you must purchase it only from licensed or franchised Culligan bottled water producers.
17Renewal, Transfer And Ending The Agreement
If there is arbitration under the JAMS Rules, the seat of the arbitration will be the JAMS office closest to the primary place of business to the defendant/respondent, or, if the subject of the dispute is a territory, the JAMS office nearest that territory.
2026 FDD · PDF Page 61 · Item 17 · View Source
Read Source Excerpts
Source NotesIf there is arbitration under the JAMS Rules, the seat of the arbitration will be the JAMS office closest to the primary place of business to the defendant/respondent, or, if the subject of the dispute is a territory, the JAMS office nearest that territory.
20Franchise Locations
At the end of 2024, the FDD reports 458 franchised locations. These are reported locations, not a count of territories available to buy.
2026 FDD · PDF Page 64 · Item 20 · View Source
Read Source Excerpts
Source NotesFranchised 2024 475 458 - 17
Find The Right Business For The Life You Want.
You don’t have to compare every brand on your own. A franchise consultant can help narrow your options and work through what ownership would ask of you.
Bring your questions about this brand, your priorities and the kind of business you want to run.
Your Role
Understand the hours, sales and people responsibilities behind the ownership model.
Your Shortlist
Spend less time sorting through brands and more time on options worth exploring.
Your Market
Check territory options with franchisors and identify the next questions to ask.
Keep Exploring
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