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AdvantaClean Franchise Cost & Fees

Date of Incorporation: 2000
Franchising Since: 2006
Headquarters: Huntersville, North Carolina

Business Description: The franchise involves a method for the operation, marketing, promotion, advertising and managing of an AdvantaClean Environmental franchised business that offers and sells certain environmental services, which franchisor approves and may modify from time to time, to residential and commercial properties utilizing Franchisor's proprietary marks and operating system. As of the most current disclosure document, the Approved Products and Services include “Light Environmental Services” that make homes and buildings clean, safe, healthy and energy efficient and including: (i) cleaning and maintenance of air ducts, dryer vents and ventilation systems; (ii) mold remediation, microbial sampling, testing and indoor air quality assessments; and (iii) performance of 24-hour emergency mitigation, cleaning and restoration services for residential and commercial properties damaged by water; (iv) a variety of solutions that improve the condition and performance of basements, crawlspaces and attics; and (v) other products, services and events that the franchisor may approve and modify from time to time and other approved property damage events.

Franchise Offer: The Franchised Business offers the franchisor’s Approved Products and Services, which we may modify/supplement/discontinue from time to time, from a single location that it must approve prior to the franchisee commencing operations.

Financial Assistance: The franchisor does not offer direct or indirect financing nor will it guarantee a franchisee’s note, lease or other obligations.

Training and Assistance: The franchisee (or the operating principal if the franchisee is an entity) must attend and successfully complete the Initial Training Program to the franchisor’s satisfaction prior to commencing operations of the Franchised Business. The franchisor will provide the franchisor and up to one additional representative designated with the Initial Training Program tuition-free. The Initial Training Program consists of three phases: the Executive Phase, the Technical Phase and the Sales Training Phase. The franchisor may also offer additional or refresher training and continuing education from time to time. Some of the additional/refresher training and/or continuing education may be mandatory and some may be optional.

Territory: The franchisee must operate the Franchised Business from a location that the franchisor approves, which it expects will be a home office location or other personal residence. The Franchise Agreement grants the franchisee the right to operate the Franchised Business only in the Territory. A typical AdvantaClean Territory generally consists of a population of a minimum of 100,000 people depending upon geography, demographics, and other factors. The demographics, geography, and other factors we use in defining the Territory are based upon information provided to the franchisor by third-party sources that it selects in its sole discretion.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal of the term is for one term of 10 years, subject to certain terms.

Obligations and Restrictions: The AdvantaClean franchise owner must personally participate in the direct operation of the AdvantaClean franchise. The agreement requires that the franchisee be directly involved in the day to day operations and work in the business for at least 40 hours per week during the first two years of business. The franchisee must operate the Franchised Business in strict conformity with all prescribed methods, procedures, policies, standards, and specifications of the System, as specified by the franchisor.

Estimated Number of Units: 225

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $49,000 $49,000
Supplies, Equipment & Inventory Package Lease $3,500 $44,023
Vehicle Purchase & Upfront Package Lease $7,000 $57,000
Technology Systems Package $1,700 $2,700
Local Advertising $2,500 $5,000
Sandler Training (per attendee) $3,000 $3,000
Travel for Initial Training $1,200 $3,000
Insurance Deposits $4,500 $7,000
Licenses and Certifications $4,000 $5,000
Legal and Accounting Fees $500 $2,000
Office Equipment, Furniture & Supplies $400 $1,000
Opening Assistance Fee $7,500 $7,500
Additional Funds - 3 months $40,000 $40,000
Estimated Total $124,800 $226,223
Other Fees
Type of Fee Amount
Royalty Greater of:
(i)10% of the Gross Revenue derived from Primary, Other and Subcontracted Services or
(ii) a minimum royalty fee of (a) $1,000 per month for the first 12 months of operation, and (b) $2,000 per month after that 12-month period.
Technology Fee Not currently charged. Up to $300 per territory per month if and when the franchisor decides to charge a Technology Fee.
Late Payment $100 per incident plus 1.5% interest per month, or maximum allowed by law.
Training, Assistance or Refresher Training The then-current training tuition fee, which is currently between $500 and $2,000 per day.
Renewal Fee 10% of the then-current Initial Franchise Fee.
Transfer Fee $5,000 for any transfer of the franchisee’s Franchise Agreement or Franchised Business (plus any broker fees incurred).
Administrative Fee $250 fee for various modifications to certain legal documents.
Attorney Fees and Costs Reimbursement of our actual fees and costs.
Supplier and/or Non-Approved Product Approval Reimbursement of actual costs incurred in reviewing any alternate supplier or non-approved product the franchisee proposes.
Software Updates Actual costs of updated software programs and training (if applicable).
Audit Costs Actual costs of audit.
Indemnification Any costs of indemnification.
National Advertising Fund Not currently charged. Up to 2% of monthly Gross Revenue, if and when the franchisor establishes this type of Fund.
Sandler Training Then-current training fee charged by Sandler Training facility.
Local Advertising Requirement Not currently charged. Up to 3% of the monthly Gross Revenue, if the franchisor establishes a minimum amount the franchisee must spend on advertising in his/her Territory.
Insurance Cost to obtain and maintain required insurance under the Franchise Agreement, plus a service fee (if the franchisor is forced to obtain the required insurance for the franchisee on his/her behalf).
Annual Conference The then-current fee to attend the System-wide Annual Conference, in the event the franchisor holds this type of conference.
Termination/Expiration Expenses The costs and expenses the franchisee incurs in complying with his/her post-termination/expiration obligations under the Franchise Agreement.

The above information has been taken from the FDD of AdvantaClean. Year of FDD: 2016

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