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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

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $50,000 $50,000
Vehicle (Finance Option) $1,500 $2,040
Vehicle (Purchase) $38,800 $38,800
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
Insurance Premium $1,000 $3,000
Office Furniture $0 $2,200
Office Supplies $100 $300
Telephone & Utility Deposits and Fees $350 $500
High-Speed Internet Access $150 $225
VOIP Telephone Equipment and Service Fee $455 $455
Professional Fees $0 $500
Uniforms >$200 $500
Opening Advertising and Marketing Materials $0 $2,200
Training Expenses $3,100 $3,100
Continuing Education Courses $0 $2,000
Facility Rent $0 $2,500
Business Licenses $0 $550
Laser Printer $150 $350
PuroMetrix System $975 $975
Insurance Industry Claims Estimating Software $375 $375
Security Deposit $0 $3,000
Camera $100 $250
Additional Funds (3 Month Period) $9,000 $15,000
Estimated Total (finance option) $71,205 $94,820
Estimated Total (purchase) $160,755 $182,780
Other Fees
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.
Renewal Fee $5,000
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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