INDUSTRY BENCHMARK · 44 SYSTEMS · FISCAL 2023–2025
Are cleaning & restoration franchises a good investment?
Across 42 cleaning & restoration franchise systems, the median system's exit rate in its latest fiscal year was 4.5%, and its opening rate 8.5%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 6.3%. JANI-KING alone is 30% of the sector's franchised base. Median franchise fee: $50K; median royalty: 7.0%; median total investment: $131K–$286K.
There is no official “cleaning & restoration franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
4.5%
42 systems · latest fiscal year each
6.3%
JANI-KING alone is 30% of the sector's franchised base.
8.5%
1,318 outlets opened in total
44
FDD filed within 24 months
16,325
at latest fiscal year end
$50K
FDD Item 5
7.0%
FDD Item 6
$131K–$286K
FDD Item 7
38/44
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 44 SYSTEMS · 44 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | SERVPRO | Strong |
| STRONGEST RECORD | ENVIRO-MASTER | Strong |
| STRONGEST RECORD | Fleet Clean | Strong |
| WEAKEST FILED RECORD | All Dry | Weaker |
| WEAKEST FILED RECORD | JANI-KING | Weaker |
| WEAKEST FILED RECORD | Bin Blasters | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Cleaning & Restoration franchise questions, answered from the filings
How many cleaning & restoration franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 42 cleaning & restoration systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 4.5%; pooled across systems, with no system counting for more than 20% of the weight, it was 6.3%. JANI-KING alone is 30% of the sector's franchised base. Not every exit is a failure: some are retirements or sales.
How much does a cleaning & restoration franchise cost?
Across the latest FDD filings of 44 cleaning & restoration systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $131K–$286K (Item 7).
What royalty do cleaning & restoration franchises charge?
The median ongoing royalty across 44 cleaning & restoration franchise systems is 7.0% of gross sales, per Item 6 of their latest FDD filings.
Are cleaning & restoration franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median cleaning & restoration system opened new franchised outlets at 8.5% of its starting base and lost 4.5% to exits. For the median system, openings outpaced exits.
What is the healthiest cleaning & restoration franchise?
Of the cleaning & restoration systems rated from their FDD Item 20 tables, SERVPRO has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
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