INDUSTRY BENCHMARK · 24 SYSTEMS · FISCAL 2018–2025
Are cleaning & restoration franchises a good investment?
Across 24 cleaning & restoration franchise systems (5,235 franchised units), franchisees exited at an annualized rate of 3.1% in their latest FDD Item 20 filings, while new outlets opened at 7.6%. The median buy-in: a $50K franchise fee, 7.0% royalty, and a total investment of $130K–$260K.
People search for a “cleaning & restoration franchise failure rate,” but no such official number exists. 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. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
3.1%
157 exits / 5,015 units at start
7.6%
381 outlets opened
24
verified FDD extractions
5,235
at latest fiscal year end
$50K
FDD Item 5
7.0%
FDD Item 6
$130K–$260K
FDD Item 7
19/24
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 24 SYSTEMS · 24 FILINGS · FISCAL 2018–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST | SERVPRO | Proven & strong |
| STRONGEST | Fleet Clean | Proven & strong |
| STRONGEST | Shine, SHINE WINDOW CARE AND HOLIDAY LIGHTING, SHINE WINDOW CARE, and SHINE HOLIDAY LIGHTING. | Proven & strong |
| WEAKEST | SHACK SHINE | Too new to judge |
| WEAKEST | BOR RESTORATION | Too new to judge |
| WEAKEST | eMaids | Too new to judge |
VERDICTS SOURCED FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Cleaning & Restoration franchise questions, answered from the filings
What percentage of cleaning & restoration franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 24 cleaning & restoration franchise systems, 157 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 5,015 open at the start of the year — an annualized exit rate of 3.1% in fiscal 2018–2025. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a cleaning & restoration franchise cost?
Across the latest FDD filings of 24 cleaning & restoration systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $130K–$260K (Item 7).
What royalty do cleaning & restoration franchises charge?
The median ongoing royalty across 24 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 the latest Item 20 filings, cleaning & restoration systems opened new franchised outlets at an annualized rate of 7.6% while franchisees exited at 3.1%. Openings currently outpace exits in this industry.
What is the healthiest cleaning & restoration franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified cleaning & restoration system tracked is SERVPRO.
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