In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a PuroClean franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a PuroClean franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned PuroClean outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the PuroClean franchise opportunity

Section V – Presentation and analysis of PuroClean’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross sales for the 334 PuroClean franchisees in operation for the full 2023 Measurement Period (January 1, 2023 to December 31, 2023) that had been opened for one or more full years and reported their sales data for every month of the 2023 Measurement Period, grouped by years in operation (less than 2, 3 to 6, 7 and greater, and all franchisees)

• 2023 average, median, highest, and lowest gross sales for the 334 PuroClean franchisees in operation for the full 2023 Measurement Period (January 1, 2023 to December 31, 2023) that had been opened for one or more full years and reported their sales data for every month of the 2023 Measurement Period, grouped by tertile (top third, middle third, and bottom third)

Section VI – Key ratios, comparables, computations, and analyses for the PuroClean franchise opportunity (exclusive content for Platinum subscribers)

Section I – PuroClean Franchise Costs

• Initial Franchise Fee:  $59,000
• Vehicle:  $3,000 to $3,500 (finance option); $65,000 (base purchase price)
• Equipment and Supplies Package:  $3,500 to $5,000 (financed); $65,000 (purchase)
• Insurance Premium:  $1,500 to $1,875
• Office Furniture:  $0 to $2,200
• Office Supplies:  $100 to $300
• Telephone and Utility Deposits and Fees:  $350 to $500
• High-Speed Internet Access:  $200 to $300
• VOIP Telephone Equipment and Services Fee:  $455
• Answering Service:  $100 to $365
• Professional Fees:  $0 to $500
• Uniforms:  $200 to $500
• Opening Advertising and Marketing Materials:  $0 to $2,200
• Training Expenses:  $6,000
• Mentoring Program:  $2,500 to $4,500
• Continuing Education Courses:  $0 to $2,000
• Facility Rent:  $0 to $2,500
• Business Licenses:  $0 to $550
• Laser Printer:  $150 to $500
• DASH Software:  $3,000
• Insurance Industry Claims Estimating Software:  $375
• Security Deposit:  $0 to $3,000
• Camera:  $100 to $300
• Additional Funds (3-Month Period):  $15,000 to $25,000
• Total Estimated PuroClean Franchise Costs (With Finance Options):  $95,530 to $124,420; Total Estimated PuroClean Franchise Costs (With Purchase of Vehicle and Equipment and Supplies Package):  $219,030 to $245,920

Section II – PuroClean’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $59,000
• Royalty Fee:  3% to 10% of Gross Receipts for Mitigation Services; 3% of Gross Receipts for Reconstruction Services; subject to a minimum monthly royalty fee ($400 per month in year 1 to $2,500 per month in year 5; prior year plus CPI for years 6-20)
• Marketing Fee:  2% of Gross Receipts
• Local Advertising:  2% of Gross Receipts on local advertising and promotion

Section III – Number of Franchised and Company-Owned PuroClean Outlets

Franchised

2021

• Outlets at the Start of the Year:  277
• Outlets at the End of the Year:  311
• Net Change:  +34

2022

• Outlets at the Start of the Year:  311
• Outlets at the End of the Year:  350
• Net Change:  +39

2023

• Outlets at the Start of the Year:  350
• Outlets at the End of the Year:  402
• Net Change:  +52

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the PuroClean Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the PuroClean Franchise (Item 19, 2024 FDD)

• This Item 19 contains certain historical data submitted to PuroClean by its franchisees for the period January 1, 2023 to December 31, 2023 (the “2023 Measurement Period”).

• The information contained in this Item 19 includes data that was submitted to PuroClean by its franchisees through the royalty reporting tool PuroFAB Financial Analysis & Benchmarking. PuroClean has not audited this information, nor independently verified this information.

• The franchisees included in this Item 19 operate businesses substantially similar to the business being offered in the Disclosure Document.

Average and Median Annual Gross Sales (2022)

• There were 334 PuroClean Franchisees in operation for the full 2023 Measurement Period that had been opened for one or more full years.

• This does not include the 65 Franchisees who opened during 2023 and were not open the full 2023 Measurement Period or the 17 franchisees that closed in 2023 (with one of those opening and closing during the 2023 Measurement Period).

• Of the 334 Franchisees opened during the 2023 Measurement Period, 334 Franchisees reported their sales data for every month of the 2023 Measurement Period and are included as part of a sub-set in this Item 19 (the “Reporting Franchisees”).

• Included in this Item 19 is information regarding the Average and Median Annual Gross Sales for the Reporting Franchisees, based on the number of years of operation.

• The following tables present the Average and Median Annual Gross Sales for the Reporting Franchisees, broken down by the number of years of operation.

Years in Operation: Less Than 2

• 2023 Average Annual Gross Sales:  $551,195
• Number of Reporting Franchisees:  76 (21 or 28% exceeded average)
• 2023 Median Annual Gross Sales:  $307,842
• 2023 Lowest Annual Gross Sales:  $500
• 2023 Highest Annual Gross Sales:  $4,213,171

Years in Operation: 3 to 6

• 2023 Average Annual Gross Sales:  $885,917
• Number of Reporting Franchisees:  127 (42 or 33% exceeded average)
• 2023 Median Annual Gross Sales:  $529,874
• 2023 Lowest Annual Gross Sales:  $3,166
• 2023 Highest Annual Gross Sales:  $5,759,443

Years in Operation: 7 and Greater

• 2023 Average Annual Gross Sales:  $1,568,551
• Number of Reporting Franchisees:  131 (38 or 29% exceeded average)
• 2023 Median Annual Gross Sales:  $1,008,816
• 2023 Lowest Annual Gross Sales:  $0
• 2023 Highest Annual Gross Sales:  $21,692,164

All Franchisees

• 2023 Average Annual Gross Sales:  $1,077,492
• Number of Reporting Franchisees:  334 (165 or 49% exceeded average)
• 2023 Median Annual Gross Sales:  $590,653
• 2023 Lowest Annual Gross Sales:  $0
• 2023 Highest Annual Gross Sales:  $21,692,164

Top Third

• 2023 Average Annual Gross Sales:  $2,381,158
• Number of Reporting Franchisees:  112 (32 or 29% exceeded average)
• 2023 Median Annual Gross Sales:  $1,698,865
• 2023 Lowest Annual Gross Sales:  $1,058,603
• 2023 Highest Annual Gross Sales:  $21,692,164
• Average Number of Years in Operation:  9.1 years

Middle Third

• 2023 Average Annual Gross Sales:  $641,848
• Number of Reporting Franchisees:  112 (45 or 40% exceeded average)
• 2023 Median Annual Gross Sales:  $583,697
• 2023 Lowest Annual Gross Sales:  $365,394
• 2023 Highest Annual Gross Sales:  $1,058,561
• Average Number of Years in Operation:  6.7 years

Bottom Third

• 2023 Average Annual Gross Sales:  $193,689
• Number of Reporting Franchisees:  110 (58 or 53% exceeded average)
• 2023 Median Annual Gross Sales:  $204,057
• 2023 Lowest Annual Gross Sales:  $0
• 2023 Highest Annual Gross Sales:  $362,736
• Average Number of Years in Operation:  4.8 years

• “Average Annual Gross Sales” is defined as the total of all paid and/or collected sales invoices or other items or services billed to the customer for all “completed sales” less any discounts. Sales of products and services are considered “completed sales” when the franchisee collects payment from the customer. The average is determined by dividing the sum of the Reporting Franchisees’ Annual Gross Sales by the number of Reporting Franchisees.

• “Median Annual Gross Sales” is defined as the middle value, above and below which an equal number of Reporting Franchisees lie. In other words, half of the Reporting Franchisees for each subset exceeded this value and half of them did not.

• Some outlets have sold this amount. Your individual results will differ. There is no assurance that you’ll sell as much.

• This analysis does not contain information concerning the specific operating costs and expenses that you will incur in operating your business. Operating costs and expenses may vary substantially from business to business.

Section VI – PuroClean Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️