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

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

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

Section III – Number of franchised and company-owned The Cleaning Authority 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 Cleaning Authority franchise opportunity

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

• 2023 total actual gross revenue; average gross revenue; total customers; average price per clean; total number of cleans; average cost of goods sold; average weekly customer loss; total recurring leads; total recurring estimate leads; total one-time only leads; one-time-only revenue as percentage of total gross revenue; percentage of recurring leads resulting in appointments; total recurring sales; and estimated total number of employees for the period December 31, 2022 through December 31, 2023, the franchisor’s 2023 fiscal year, for the top third, middle third, and bottom third of the 200 Enterprise Market Franchised Territories that were operating for the entire 2023 fiscal year

Section VI – Key ratios, comparables, computations, and analyses for The Cleaning Authority franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Cleaning Authority Franchise Costs

• Territory Fee:  $22,500 to $45,000
• Franchise Fee:  $20,000
• Computer, Including Training Software Access Fee:  $1,750 to $2,750
• Washer, Dryer, and Furniture:  $1,650 to $3,150
• Cleaning Equipment and Supplies:  $2,500 to $3,500
• Travel and Living Expenses While Training:  $3,000 to $4,000
• Insurance and Insurance Deposits:  $5,500 to $7,500
• Opening Inventory:  $2,250 to $2,750
• Office Rent and Security Deposit:  $6,000 to $12,000
• Local Marketing Fee Deposit – 50% of First 13 Weeks:  $6,564 to $13,127
• Local Marketing Fees – Remaining 50% of First 13 Weeks:  $6,564 to $13,127
• Vehicle Lease or Purchase:  $0 to $2,000
• Full-Time Manager:  $0 to $13,750
• Additional Funds (3 months):  $27,000 to $30,000
• Total Estimated The Cleaning Authority Franchise Costs:  $105,278 to $172,654

Section II – The Cleaning Authority’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Franchise Fee:  $20,000 for an Enterprise Market and $15,000 for a Hometown Market

• Royalty Fee:  for Enterprise Markets, 6% of first $600,000 Gross Revenue during the calendar year; 5% of Gross Revenue from $600,000.01 to $1,300,000; 4% of Gross Revenue above $1,300,000.01. For Hometown Markets, 6% of first $300,000 Gross Revenue during the calendar year; 5% of Gross Revenue from $300,000.01 to $550,000; and 4% of Gross Revenue above $550,000.01. The rate reverts to 6% at the start of the next calendar year.

• Brand Fund Contribution:  for both Enterprise Markets and Hometown Markets, 1% of Gross Revenue or $200 per week, whichever is less

• Local Marketing Fee:  currently $0.374 multiplied by a percentage of the Designated Households (“DHH”) in your Territory (9% to 13% depending on your number of customers, with lower thresholds for Hometown Markets)

Section III – Number of Franchised and Company-Owned The Cleaning Authority Outlets

Franchised

2021

• Outlets at the Start of the Year:  208
• Outlets at the End of the Year:  209
• Net Change:  +1

2022

• Outlets at the Start of the Year:  209
• Outlets at the End of the Year:  218
• Net Change:  +9

2023

• Outlets at the Start of the Year:  218
• Outlets at the End of the Year:  221
• Net Change:  +3

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – News Updates on The Cleaning Authority Franchise

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

Part 1 – Territories Operating From December 31, 2022 to December 31, 2023

• As of the end of fiscal year 2023, there were 221 Territories operating.

• Part 1 1 provides information for the 200 Enterprise Market Territories (the “Reporting Territories”) that were operating for the entire 2023 fiscal year. The Cleaning Authority excluded 8 Hometown Market Territories, 13 Territories that opened during the fiscal year, and 10 Territories that closed during the fiscal year.

• Part 1 presents information based upon the top, middle, and lower performing Reporting Territories. The top, middle, and lower performing Reporting Territories were determined by comparing the actual Gross Revenue achieved by each Reporting Territory during 2023.

Top Third Reporting Territories by Gross Revenue

• Total Number of Reporting Territories:  67
• Total Actual Gross Revenue:  $162,869,306
• Average Gross Revenue:  $2,430,885
• Number Above Average:  27
• Percentage Above Average:  40%
• Median Gross Revenue:  $2,231,674
• Highest Gross Revenue:  $4,671,476
• Lowest Gross Revenue:  $1,604,342
• Total Customers:  48,334
• Average Price Per Clean:  $165
• Total Number of Cleans:  984,519
• Average Cost of Goods Sold (“COGS”):  62%
• Average Weekly Customer Loss:  0.86%
• Total Recurring Leads:  79,059
• Total Recurring Estimate Leads:  27,188
• Total One-Time-Only Leads:  56,188
• One-Time-Only Revenue as Percentage of Total Gross Revenue:  1%
• Percentage of Recurring Leads Resulting in Appointments:  34%
• Total Recurring Sales:  24,606
• Estimated Total Number of Employees:  3,123

Middle Third Reporting Territories by Gross Revenue

• Total Number of Reporting Territories:  66
• Total Actual Gross Revenue:  $84,429,073
• Average Gross Revenue:  $1,279,228
• Number Above Average:  31
• Percentage Above Average:  47%
• Median Gross Revenue:  $1,257,449
• Highest Gross Revenue:  $1,604,342
• Lowest Gross Revenue:  $970,268
• Total Customers:  26,375
• Average Price Per Clean:  $160
• Total Number of Cleans:  529,660
• Average Cost of Goods Sold (“COGS”):  61%
• Average Weekly Customer Loss:  0.99%
• Total Recurring Leads:  51,570
• Total Recurring Estimate Leads:  18,674
• Total One-Time-Only Leads:  41,059
• One-Time-Only Revenue as Percentage of Total Gross Revenue:  3%
• Percentage of Recurring Leads Resulting in Appointments:  36%
• Total Recurring Sales:  15,821
• Estimated Total Number of Employees:  1,777

Bottom Third Reporting Territories by Gross Revenue

• Total Number of Reporting Territories:  67
• Total Actual Gross Revenue:  $43,815,905
• Average Gross Revenue:  $653,969
• Number Above Average:  42
• Percentage Above Average:  63%
• Median Gross Revenue:  $723,043
• Highest Gross Revenue:  $970,268
• Lowest Gross Revenue:  $153,768
• Total Customers:  13,861
• Average Price Per Clean:  $161
• Total Number of Cleans:  272,582
• Average Cost of Goods Sold (“COGS”):  63%
• Average Weekly Customer Loss:  1.18%
• Total Recurring Leads:  37,611
• Total Recurring Estimate Leads:  14,103
• Total One-Time-Only Leads:  29,340
• One-Time-Only Revenue as Percentage of Total Gross Revenue:  4%
• Percentage of Recurring Leads Resulting in Appointments:  37%
• Total Recurring Sales:  11,142
• Estimated Total Number of Employees:  1,004

• COGS generally includes expenses for direct labor (but not management salaries or owner draws because these amounts are part of overhead expenses), payroll taxes, workers’ compensation and general liability insurance, cleaning supplies, mileage, and royalties payable to the franchisor from the Reporting Businesses.

• COGS does not include overhead expenses such as advertising, rent expense (approximately $1,200 to $2,000 per month), telephone expenses including mobile phone and internet (approximately $250 to $350 per month), manager salaries or owner draws, employee advertising (approximately $300 to $500 per month), and the like.

• In addition to the costs disclosed in this Chart, you will incur costs for the weekly Local Marketing Fee.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

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