Puroclean Franchise Cost & Fees
Date of Incorporation: 1990
Franchising Since: 1991
Headquarters: Tamarac, Florida
Business Description: Puroclean offers Franchise Businesses which provide: (a) drying remediation, mitigation and cleaning services along with structure repair on property casualty losses and related forms of property damage; and (b) purification remediation, mitigation and cleaning of HVAC systems, indoor air, structures, real property and personal property whether or not damaged by a casualty loss.
Franchise Offer: A Puroclean franchise will provide all services such as, restoration, remediation, mitigation, construction, purification and other related services and products to businesses and residential clients whether or not insurance covers them.
Financial Assistance: The franchisor does not offer direct financing to their franchisees. The franchisor does offer indirect financing to their franchisees through Sutton Leasing and Enterprise Fleet Management (its current designated vehicle suppliers) and Aztec Financial (its current designated equipment finance company). The franchisee must lease or purchase his or her vehicle from a designated van supplier.
Training and Assistance: The initial training program consists of 17 days of classroom training which may not be consecutive. The franchisor may conduct some of the initial training through computer-based training or at other locations it designates. Training materials will include the Manuals and use of equipment and supplies. Initial Field Trainers may conduct initial field marketing training. The field marketing training may last up to five days following initial classroom training. The initial field training will consist of industry standard office set-up and outside sales calls. At the franchisor’s option, any manager subsequently employed by the franchisee must also complete the training program. The franchisee and his or her manager and other employees also must attend such additional courses, seminars, and other training programs as the franchisor may reasonably require from time to time.
Territory: The franchisee will not receive an exclusive territory under the terms of the Franchise Agreement, although the franchisee will receive a protected office location. The franchisee will be assigned a protected office location where the franchisee must establish and operate an office for the Franchise Business. The protected office location is a specific agreed upon area identified in the Franchise Agreement containing a population generally of up to 100,000. The office may be located at the personal residence (where permitted) or a new or existing place of business; provided, personal residence or place of business is located in protected office location.
Term of Agreement and Renewal: The term of the franchise agreement is 20 years. Renewal or extension of the term is for one consecutive term of 20 years if requirements are met.
Obligations and Restrictions: The franchisee must exclusively and directly supervise the Franchise Business for at least forty hours of each business week and must devote a full-time effort to directing outside sales (or hire an experienced outside salesperson). If the franchisee has purchased an additional franchise then the franchisee may employ a fully trained manager for the management and operation of the second Franchise Business. The manager must have attended the initial classroom-training program prior to employment. The Franchise Agreement prohibits the franchisee from offering or selling any goods or services that the franchisor has not approved in writing. The franchisee must sell all goods and services that the franchisor authorizes.
Estimated Number of Units: 230
|Name of Fee||Low||High|
|Initial Franchise Fee||$50,000||$50,000|
|Vehicle (Finance Option)||$1,500||$2,040|
|Equipment and Supplies Package (finance option)||$3,450||$4,500|
|Equipment and Supplies Package (purchase)||$52,500||$52,500|
|Computer System (finance option)||$300||$300|
|Computer System (purchase)||$3,500||$3,500|
|Telephone & Utility Deposits and Fees||$350||$500|
|High-Speed Internet Access||$150||$225|
|VOIP Telephone Equipment and Service Fee||$455||$455|
|Opening Advertising and Marketing Materials||$0||$2,200|
|Continuing Education Courses||$0||$2,000|
|Insurance Industry Claims Estimating Software||$375||$375|
|Additional Funds (3 Month Period)||$9,000||$15,000|
|Estimated Total (finance option)||$71,205||$94,820|
|Estimated Total (purchase)||$160,755||$182,780|
|Type of Fee||Amount|
|Royalty Fee||Royalties range from 3% to 10%, dependent on cumulative gross receipts for the current calendar year.|
|Optional Training Program Fee||The franchisor may charge each individual a fee for attending any optional or additional training seminars. There is no fee for attending the initial training program.|
|Transfer Fee||$20,000 or the then-current Transfer Fee at the time of the transfer.|
|Accounting Fee||Cost of Accountant.|
|Administrative & Bank Fees||Actual Bank Fees plus $25|
|Audit by Franchisor||Cost of Audit.|
|Indemnification||Will vary under circumstances.|
|Late Fee (Royalty Fees)||Greater of $10 or 5% per day of Royalty Fee due.|
|Late Fee (Products and Equipment)||Greater of $10 or 5% per day after payment for products and/or equipment is due.|
|Taxes and Fees||Federal, State, or local taxes.|
|Local Advertising||2% of Gross Receipts on local advertising and promotions.|
|Marketing Fee||2% of Gross Receipts.|
|Annual National Convention Registration Fee||$500 to $1,000 per year.|
|Minimum Purchase Requirements||2% of Franchisee’s Gross Receipts.|
|PuroMetrix System||$325 per user per year.|
|Insurance Industry Claims Estimating Software||$125 per month.|
|Interference with Relations Fee||$25,000, plus any broker/referral fee (interference with prospective franchisee) or lost employee's first year salary.|
|IICRC Examination Fees||$130 (2 exams at $65 each)|
|Optional National Call Center Participation Fees||$39 to $59 per job lead and $9 turn down declined work fee, plus costs of additional insurance and credit and criminal background checks.|
|Liquidated Damages||Greater of $100,000 or the product of the monthly average of the sum of the Royalty and Marketing Fees accrued under the Franchise Agreement during the 12 full calendar months of the operation of the Franchise Business preceding termination multiplied by the lesser of 60 or the number of months remaining under the Initial Term.|
The above information has been taken from the FDD of Puroclean. Year of FDD: 2016
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