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

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

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

Section III – Number of franchised and company-owned Voda Cleaning & Restoration 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 Voda Cleaning & Restoration franchise opportunity

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

• 2023, 2022, and 2021 total gross revenue, cost of goods sold (direct labor/subcontractors, and tools and materials), gross profit, operating expenses, EBITDA, imputed franchise fees, and adjusted EBITDA for the flagship Voda Cleaning & Restoration outlet, which served as the base from which the franchisor created the franchise model offered under the disclosure document

• 2023 total leads generated; contracted customers; gross revenue per service type; and average, median, highest, and lowest gross revenue per service type per contracted customer for restoration services, floor cleaning services, air duct/dryer vent cleaning services, and subcontracted services for the flagship Voda Cleaning & Restoration outlet

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

Section I – Voda Cleaning & Restoration Franchise Costs

• Voda Cleaning & Restoration franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Travel and Living Expenses While Training:  $1,000 to $3,500
• Rent:  $0 to $7,500
• Utilities and Security Deposits:  $0 to $1,500
• Technology Equipment Package:  $0 to $3,500
• Office Supplies and Furniture:  $0 to $5,000
• Quickbooks Online (3 months):  $180
• Playbook-keeping Fees (Upfront Fee + 3 months):  $1,300
• Inbound Call Center Fee (3 months):  $1,050
• Tech Stack (3 months):  $2,055
• Industry-Related Technology:  $3,750
• Initial Inventory of Branded Items:  $2,500
• Grand Opening Advertising:  $12,000
• Local Advertising (3 months):  $7,500
• Initial Brand Fund Contribution:  $5,000
• Upfitted Van:  $19,800 to $35,400
• Tools, Equipment, and Supplies:  $25,000 to $30,000
• Business Licenses, Certificates, and Permits:  $300 to $2,000
• Industry-Related Certifications:  $0 to $6,000
• Insurance (3 months):  $3,000 to $4,000
• Professional Fees:  $500 to $3,000
• HR and Payroll Services (3 months):  $234 to $617
• Networking Expenses:  $250 to $1,000
• Additional Funds (3 months):  $31,250 to $60,000
• Total Estimated Voda Cleaning & Restoration Franchise Costs:  $176,169 to $257,852

Section II – Voda Cleaning & Restoration’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Voda Cleaning & Restoration’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500

• Royalty Fee:  the greater of: (i) 7% of Gross Revenue or (ii) the Minimum Royalty Fee of between $0 and $1,500 per month

• Brand Fund Contribution:  during the first 12 months of operations, 1% of Gross Revenue. Thereafter, 2% of Gross Revenue.

• Local Advertising:  the greater of: (i) 5% of Gross Revenue or (ii) 2,500 per month

• Advertising Cooperative:  up to 0.5% of Gross Revenue

Section III – Number of Franchised and Company-Owned Voda Cleaning & Restoration Outlets

Franchised

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:  2
• Net Change:  +2

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Voda Cleaning & Restoration Franchise

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

• Through a transaction completed February 17, 2023, Voda acquired certain assets of its predecessor DNA Pro Cleaning Franchising LLC, an entity owned by Voda’s Brand Founder and Advisor, Dragan Krstic (the “Transaction”).

• Through an affiliated entity, DNA Fresh Carpet Care LLC operated a cleaning and restoration business in Lorton, Virginia (the “Predecessor Outlet”) under the principal trademarks “DNA Pro” and “DNA Pro Cleaning & Restoration” (the “Predecessor Marks”) since 2009. The Predecessor Outlet offers substantially similar products and services as the business you will operate under the Voda Cleaning & Restoration brand.

• As part of the Transaction, the Predecessor Outlet executed a license agreement with Voda and began the process of rebranding the Predecessor Outlet from the Predecessor Marks to the Voda Cleaning & Restoration trademarks.

• The Predecessor Outlet serves as Voda’s flagship outlet and served as the base from which Voda created the franchise model offered under the disclosure document.

• The Predecessor Outlet provided Voda with unaudited financial information for this period and Voda based the historical financial performance information presented in this Item 19 on such unaudited financial information. Voda did not audit or otherwise independently verify this information.

• During the entirety of the time period disclosed below, the Predecessor Outlet operated under the Predecessor Marks. Since the Predecessor Outlet did not operate under the parameters of a specific territory, it services a very broad ranging area. However, 70% of the Predecessor Outlet’s Gross Sales represented below was consummated in approximately the equivalent of three Franchise Territories. The Predecessor Outlet operated six full time Vans during the below reporting periods.

• Voda discloses below certain historic data concerning the Predecessor Outlet including: (i) Gross Revenue, Cost of Labor, Tools and Materials, Gross Profit, Operating Expenses, EBITDA, and Adjusted EBITDA during the 2023, 2022, and 2021 calendar years; and (ii) the Number of Total Leads, Contracted Jobs, Total Gross Revenue, and Average Per Job Sale during the 2023 calendar year.

• As of the 2023 calendar year end, Voda only had 2 operational franchisees, neither of which were operational for a full 12-month period. As such, data for these 2 franchisees has been excluded from this financial performance representation.

Part 1 – Total Gross Revenue, COGS – Direct Labor, COGS – Tools and Materials, Gross Profit, Operating Expenses, EBITDA, and Adjusted EBITDA During the 2023, 2022, and 2021 Calendar Years

2023

Total Gross Revenue:  $2,400,036.06 (100.00%)

Cost of Goods Sold

• Direct Labor/Subcontractors:  $849,939.29 (35.41%)
• Tools and Materials:  $107,752.73 (4.49%)

Gross Profit:  $1,442,344.04 (60.10%)

Operating Expenses

• Accounting:  $8,700.00 (0.36%)
• Advertising/Marketing/Promotion:  $98,982.76 (4.12%)
• Fuel/Automobile Expenses:  $79,824.95 (3.33%)
• Equipment Repairs, Maintenance, Lease:  $3,807.40 (0.16%)
• Permits, Licenses, and Legal:  $5,126.17 (0.21%)
• Bank Service Charges:  $128.19 (0.01%)
• Cable and Internet:  $1,058.06 (0.04%)
• Computer and Internet Expenses:  $502.90 (0.02%)
• Dues and Subscriptions:  $8,674.20 (0.36%)
• Auto Insurance:  $18,781.08 (0.78%)
• General Liability:  $7,673.72 (0.32%)
• Interest Expense:  $0 (0.00%)
• Linen and Laundry:  $105.80 (0.00%)
• Office Supplies and Needs:  $10,725.66 (0.45%)
• Parking and Tolls:  $697.31 (0.03%)
• Office Payroll, Taxes, Benefits, and Fees:  $144,980.76 (6.04%)
• Director of Operations Salary:  $94,450.00 (3.94%)
• Rent:  $87,426.31 (3.64%)
• Utilities:  $9,539.39 (0.40%)
• Total Operating Expenses:  $581,184.66 (24.22%)

EBITDA:  $861,159.38 (35.88%)

Imputed Franchise Fees

• Imputed Royalty Fee:  $168,002.52 (7.00%)
• Imputed Brand Fund Contribution:  $48,000.72 (2.00%)

Adjusted EBITDA:  $645,156.13 (26.88%)

2022

Total Gross Revenue:  $1,748,877.09 (100.00%)

Cost of Goods Sold

• Direct Labor/Subcontractors:  $578,779.09 (33.09%)
• Tools and Materials:  $95,975.60 (5.49%)

Gross Profit:  $1,074,122.40 (61.42%)

Operating Expenses

• Accounting:  $7,920.00 (0.45%)
• Advertising/Marketing/Promotion:  $94,913.99 (5.43%)
• Fuel/Automobile Expenses:  $58,633.06 (3.35%)
• Equipment Repairs, Maintenance, Lease:  $13,833.01 (0.79%)
• Permits, Licenses, and Legal:  $5,359.37 (0.31%)
• Bank Service Charges:  $23.68 (0.00%)
• Cable and Internet:  $1,093.24 (0.06%)
• Computer and Internet Expenses:  $480.91 (0.03%)
• Dues and Subscriptions:  $8,661.75 (0.50%)
• Auto Insurance:  $12,166.07 (0.70%)
• General Liability:  $5,915.36 (0.34%)
• Interest Expense:  $5,803.49 (0.33%)
• Linen and Laundry:  $103.65 (0.01%)
• Office Supplies and Needs:  $20,923.69 (1.20%)
• Parking and Tolls:  $451.56 (0.03%)
• Office Payroll, Taxes, Benefits, and Fees:  $121,724.38 (6.96%)
• Director of Operations Salary:  $81,075.00 (4.64%)
• Rent:  $75,264.29 (4.30%)
• Utilities:  $7,093.58 (0.41%)
• Total Operating Expenses:  $514,346.50 (29.41%)

EBITDA:  $559,775.90 (32.01%)

Imputed Franchise Fees

• Imputed Royalty Fee:  $122,421.40 (7.00%)
• Imputed Brand Fund Contribution:  $34,977.54 (2.00%)

Adjusted EBITDA:  $402,376.96 (23.01%)

2021

Total Gross Revenue:  $1,473,877.16 (100.00%)

Cost of Goods Sold

• Direct Labor/Subcontractors:  $541,585.08 (36.75%)
• Tools and Materials:  $78,809.99 (5.35%)

Gross Profit:  $853,482.09 (57.91%)

Operating Expenses

• Accounting:  $7,585.00 (0.51%)
• Advertising/Marketing/Promotion:  $81,607.09 (5.54%)
• Fuel/Automobile Expenses:  $45,893.33 (3.11%)
• Equipment Repairs, Maintenance, Lease:  $17,668.55 (1.20%)
• Permits, Licenses, and Legal:  $2,857.02 (0.19%)
• Bank Service Charges:  $91.06 (0.01%)
• Cable and Internet:  $978.97 (0.07%)
• Computer and Internet Expenses:  $671.75 (0.05%)
• Dues and Subscriptions:  $5,130.02 (0.35%)
• Auto Insurance:  $10,342.29 (0.70%)
• General Liability:  $5,394.89 (0.37%)
• Interest Expense:  $5,685.25 (0.39%)
• Linen and Laundry:  $109.25 (0.01%)
• Office Supplies and Needs:  $16,273.25 (1.10%)
• Parking and Tolls:  $426.61 (0.03%)
• Office Payroll, Taxes, Benefits, and Fees:  $93,339.99 (6.33%)
• Director of Operations Salary:  $78,400 (5.32%)
• Rent:  $59,428.49 (4.03%)
• Utilities:  $6,672.58 (0.45%)
• Total Operating Expenses:  $431,882.81 (29.30%)

EBITDA:  $421,599.28 (28.60%)

Imputed Franchise Fees

• Imputed Royalty Fee:  $103,171.40 (7.00%)
• Imputed Brand Fund Contribution:  $29,477.54 (2.00%)

Adjusted EBITDA:  $288,950.34 (19.60%)

• “Gross Revenue” means all revenues and income from any source that you directly or indirectly derive or receive from, through, by or on account of the operation of the business, whether received in cash, in services, in kind, from barter and/or exchange (valued at the full retail value of the goods or services received), on credit (whether or not payment on credit transactions is ultimately received), or otherwise, and specifically includes, without limitation, revenues and income received from the proceeds of any business interruption insurance policies and/or the sale of any promotional or premium items.

• “COGS – Direct Labor/Subcontractors” means the total amount the Predecessor Outlet expended on labor directly attributed to contracted work. This excludes the salaries of owners, managers, and office administration.

• “COGS – Tools and Materials” means the total amount the Predecessor Outlet expended on direct materials used on jobsites or in conjunction with contracted jobs.

• “Gross Profit” is calculated by taking the Total Gross Revenue and subtracting the COGS – Direct Labor and the COGS – Tools and Materials.

• “Operating Expenses” is calculated by adding up all of the line items set forth under the “Operating Expenses” category.

• “EBITDA” is calculated by taking the Gross Profit and subtracting the Operating Expenses.

• “Imputed Royalty Fee” means the estimated Royalty Fee that the Predecessor Outlet would have had to pay Voda during the Measurement Period if it was a System franchisee and governed by Voda’s current form of Franchise Agreement. Voda calculated Imputed Royalty Fees by multiplying the Total Gross Revenue by 7% to account for the full Royalty Fee set forth and required under Voda’s current form of Franchise Agreement (i.e., Voda assumed the maximum Royalty Fee imposed for all services, instead of the potential Reconstruction Reduction).

• “Imputed Brand Fund Contribution” means the estimated Brand Fund Contribution that the Predecessor Outlet would have had to pay Voda during the Measurement Period if it was a System franchisee and governed by Voda’s current form of Franchise Agreement. Voda calculated Imputed Brand Fund Contribution by multiplying the Total Gross Revenue by 2% to account for the full Brand Fund Contribution set forth and required under Voda’s current form of Franchise Agreement (i.e., Voda assumed the maximum Brand Fund Contribution imposed for all services, instead of the potential Reconstruction Reduction) after the Franchised Business has been in business for 12 months (prior to such period, only 1% is required).

• “Adjusted EBITDA” is calculated by taking the EBITDA and subtracting the Imputed Royalty Fee and Imputed Brand Fund Contribution.

• The information in this Part 1 is calculated based on the Predecessor Outlet’s cash based accounting derived from the Predecessor Outlet’s QuickBooks account.

Part 2 – Number of Leads, Contracted Customers, Total Gross Revenue, and Average Per Customer Sale, by Service Type, During the 2023 Calendar Year

Restoration Services

• Total Leads Generated:  2,528 (for all service lines)
• Contracted Customers:  258
• Gross Revenue Per Service Type:  $996,151.54
• Average Gross Revenue Per Service Type Per Contracted Customer:  $3,861.05
• Median Gross Revenue of All Contracted Jobs:  $2,273.35
• Highest Contracted Job Per Service Type:  $32,199.89
• Lowest Contracted Job Per Service Type:  $135.96

• For Restoration Services, 73 Contracted Jobs (or 28%) met or exceed the average.

Floor Cleaning Services

• Total Leads Generated:  2,528 (for all service lines)
• Contracted Customers:  1,601
• Gross Revenue Per Service Type:  $935,321.08
• Average Gross Revenue Per Service Type Per Contracted Customer:  $584.21
• Median Gross Revenue of All Contracted Jobs:  $400.00
• Highest Contracted Job Per Service Type:  $15,705.31
• Lowest Contracted Job Per Service Type:  $50.00

• For Floor Cleaning Services, 469 Contracted Jobs (or 29%) met or exceed the average.

Air Duct/Dryer Vent Cleaning Services

• Total Leads Generated:  2,528 (for all service lines)
• Contracted Customers:  104
• Gross Revenue Per Service Type:  $71,918.01
• Average Gross Revenue Per Service Type Per Contracted Customer:  $705.08
• Median Gross Revenue of All Contracted Jobs:  $526.26
• Highest Contracted Job Per Service Type:  $3,386.00
• Lowest Contracted Job Per Service Type:  $195.00

• For Air Duct/Dryer Vent Cleaning Services, 43 Contracted Jobs (or 43%) met or exceed the average.

Subcontracted Services

• Total Leads Generated:  2,528 (for all service lines)
• Contracted Customers:  98
• Gross Revenue Per Service Type:  $426,163.53
• Average Gross Revenue Per Service Type Per Contracted Customer:  $2,487.74
• Median Gross Revenue of All Contracted Jobs:  $2,487.71
• Highest Contracted Job Per Service Type:  $31,691.88
• Lowest Contracted Job Per Service Type:  $175.00

• For Subcontracted Services, 49 Contracted Jobs (or 50%) met or exceed the average.

• “Leads” means the number of inquiring people who called or submitted their information to the Predecessor Outlet in order to get information, pricing, or to schedule an appointment.

• “Contracted Customers” means the number of customers who signed one or more contracts with the Predecessor Outlet and received business services in exchange for payment.

• “Average Gross Revenue Per Service Type Per Contracted Job” is calculated by taking the Total Gross Revenue per Service Type and dividing it by the number of Contracted Jobs.

• The information in this Part 2 is based on the contract information as of the contract signing date as derived from the Predecessor Outlet’s customer relationship management system.

• Voda has not audited this information, nor independently verified this information.

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

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

Section VI – Voda Cleaning & Restoration Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️