Oxi Fresh Carpet Cleaning Franchise Costs & Fees
Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: Lakewood, Colorado
Business Description: Oxi Fresh Franchising, Co., Inc., the franchisor, is offering a franchise program known as Oxi Fresh Carpet Cleaning specializing in the cleaning of commercial and residential carpet, rugs, and upholstery. Oxi Fresh Businesses also offer tile and grout cleaning services, hardwood floor cleaning services, and other ancillary services.
Franchise Offer: Under the Franchise Agreement, the franchisor offers qualified purchasers the right to establish and operate an Oxi Fresh Business within a specified Territory.
Financial Assistance: Neither the franchisor nor any agent or affiliate of its offer direct or indirect financing to its franchisees. The franchisor does not guarantee any notes, leases or other obligations of its franchisees.
Training and Assistance: The franchisor provides an initial training program at no additional charge for franchisees, or if they are an entity, a person designated to assume primary responsibility for the management of the Oxi Fresh Business (the Operations Manager), and up to one additional employee, provided the training of the additional employee is done at the same time as the franchisee or the Operations Manager’s training. The franchisor will also provide at no additional charge an advanced training program for franchisees or their Operations Manager and up to one additional employee at a later date than the initial training. In addition to the initial training program and Advanced Training Program, the franchisor provides the Commercial/Pull System Training Program to franchisees who choose at their option to participate and pay the Commercial/Pull System Training Fee of $700. All of these training programs are conducted at the franchisor’s headquarters in Lakewood, Colorado, U.S.A. The initial franchise training program, the Advanced Training Program, and the Commercial/Pull System Training Program each last two business days. The franchisor may present seminars, international, national or regional conventions, continuing development programs or other meetings. Most of these are voluntary and the franchisee’s attendance is not required. However, franchisees or their Operations Manager must attend any mandatory seminars, programs or meetings the franchisor conducts, not to exceed two of these programs per year.
Territory: Franchisees will receive a designated territory as the Protected Territory that will be delineated by county, city, zip codes, street boundaries, or other designated geographical boundaries as determined by Census Bureau statistics. The Protected Territory will contain approximately 110,000 households. As long as franchisees remain in compliance with the Franchise Agreement, the franchisor will not operate locations or grant franchises for an Oxi Fresh Business within the Protected Territory.
Term of Agreement and Renewal: The length of the initial franchise term is 7 years. Successive terms of 7 years each are available, subject to certain terms.
Obligations and Restrictions: Franchisees are not required to personally participate in the direct operation of your Oxi Fresh Business. If franchisees do not personally participate in the direct operation of the Oxi Fresh Business on a daily basis, they must appoint an Operations Manager, who must participate in the direct operation of the Oxi Fresh Business on a daily basis. If the franchisee is a business entity, the designated Operations Manager does not need to have an ownership interest in the franchise. Franchisees must operate your Oxi Fresh Business in strict conformity with all prescribed methods, procedures, policies, standards, and specifications in the Licensed Methods, as described in the Operations Manual and in other writings provided to franchisees by the franchisor. Franchisees must use the Oxi Fresh Location only for the operation of the Oxi Fresh Business (except if it is also the franchisee’s personal residence) and they may not operate any other business at or from the Oxi Fresh Location without the franchisor’s express prior written consent, which may be withheld for any purpose.
Estimated Number of Units: 300
|Name of Fee||Low||High|
|Initial Franchise Fee||$33,900||$33,900|
|Tile and Grout Cleaning Package||$0||$500|
|Upholstery Cleaning Package||$0||$950|
|Hardwood Floor Cleaning Package||$0||$2,625|
|Commercial/Pull System Training Fee||$0||$700|
|Initial Training Expenses||$700||$4,400|
|Legal and Accounting Fees||$700||$1,000|
|Computer Hardware and Software||$0||$1,300|
|Office Equipment and Supplies||$100||$500|
|Royalty Fee (1st 3 months)||$885||$885|
|Advertising and Technology Fee (1st 3 months)||$399||$399|
|Marketing Expenses (1st 3 months)||$0||$8,000|
|Additional Funds (working capital – 3 months)||$1,000||$8,000|
|Type of Fee||Amount|
|Royalty||$295 per month throughout the term.|
|Job Fee||(i) $11 per completed job; (ii) $40 per month for each Co-Op Line that the franchisor provides franchisees; (iii) $40 per month for each Market Expansion Line that the franchisor provides franchisees, if any; and (iv) $10 per month for each Oxi Fresh Business franchisees own to cover their share of the national Toll-Free Number.|
|Advertising and Technology Fee||Currently, 2% of Gross Revenues or a minimum of $133, per month, which may be increased.|
|National and International Account Program Fees||Varies.|
|Cleaning Machines and Packages||Will vary, based on the current price list.|
|Commercial/Pull System Training Fee||$700|
|Shipping Costs and Taxes||Will vary.|
|Annual Convention and Other Meeting Fee||Varies. The amount charged for the most recent annual convention was $450 per franchisee attending.|
|Additional Training, Assistance & Refresher Training||Then current published rate (currently $700 per day, not including travel and lodging expenses).|
|Successor Franchise Fee||$4,000|
|Resale Assistance Fee||The lesser of $20,000 or 30% of the total consideration franchisees receive for the sale of the Oxi Fresh Business.|
|Transferee Training Fee||$1,000|
|Supplier Approval||Actual costs of supplier approval.|
|Noncompliance Service Charge||$500 or $1,000 per event of noncompliance, depending on the type of noncompliance.|
|Fee for Soliciting Customers Outside of Protected Territory||All revenues derived from applicable customers.|
|Late Fees and Interest||$50 late fee per incident plus 1.5% interest per month, or maximum allowed by law.|
|Insufficient Funds Fee||3% of the amount due.|
|Audit Fee||Actual costs of audit plus interest on amount of overdue monies.
If franchisees commit an Act of Deception (as defined in the Franchise Agreement), $15,000
|Unreported or Inaccurately Reported Sales or Underpayments||Will vary under circumstances.|
|Attorney Fees and Costs||Actual fees and costs.|
|Indemnification||Actual costs of indemnifications.|
The above information has been taken from the FDD of Oxi Fresh Carpet Cleaning. Year of FDD: 2016
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