Franchising Since: 1991
Headquarters: Tamarac, Florida
Estimated Number of Units: 470
Franchise Description: PuroSystems, LLC is the franchisor. The franchisor offers PuroClean 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. Franchisees do not need any specific prior experience to operate a PuroClean business.
Training Overview: New Franchise Training (NFT) consists of 17 days of instruction. Approximately 14 days of instruction and hands-on training will be conducted at the franchisor’s PuroClean Academy located at its corporate facility in Tamarac, FL. Approximately three days of instruction will be offered online. The 17 days of instruction may not be consecutive. The franchisor may conduct some of the initial training through computer-based training or at other locations it designates. The franchisor may require franchisees to participate in a five-day mentoring program after signing the Franchise Agreement but before their initial field training. The franchisor may also provide field training for up to two days. The franchisor’s initial field trainers or its regional directors may provide the initial field training. Field training may be conducted virtually. Franchisees will also be required to complete the IICRC Applied Microbial Remediation Technician course within 90 days of completion of the PuroClean Academy initial training program. The franchisor has the right but not the obligation to hold an annual International Convention. If the franchisor does hold a convention, franchisees must attend and pay the franchisor a registration fee.
Territory Granted: Franchisees will be assigned a protected office location (POL) where the franchisee must establish and operate an office for the franchise business from a single location. The POL is a specific agreed upon area identified in the Franchise Agreement containing a population generally of up to 100,000. The franchisor must approve in advance the location of the franchisee’s office. During the term of the Franchise Agreement the franchisor will not establish or operate, or license any other party the right to establish or operate, a PuroClean business from an office or business address located inside the POL. Other PuroClean franchisees or company-owned businesses may market and service customers located inside and outside of the POL, with certain exceptions. In addition to the POL, franchisees may be assigned a “Halo” territory containing a population generally of up to 150,000. The franchisor will review the Halo program at the end of each calendar year, and may modify or discontinue the program, including any and all Halo territories, at that time.
Obligations and Restrictions: If franchisees are an individual, they must exclusively and directly supervise the franchise business for at least 40 hours of each business week and must devote a full-time effort to directing outside sales (or hire an experienced outside salesperson). If franchisees are a corporation or partnership, one of the equity owners or partners must exclusively and directly supervise the franchise business on its premises for at least 40 hours of each business week. If franchisees purchase an additional franchise, then they 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 franchisees from offering or selling any goods or services that the franchisor has not approved in writing. Franchisees must sell all goods and services that the franchisor authorizes.
Term of Agreement and Renewal: The term of the initial franchise agreement is 20 years. Renewal or extension of the term is for one consecutive term of 20 years, if requirements are met.
Financial Assistance: The franchisor does not offer any direct financing assistance. The franchisor offers indirect financing to its franchisees through AGS Fleet and Bush Business Enterprises. Franchisees must lease or purchase their vehicle from one of these designated vehicle suppliers. The franchisor reserves the right to change its designated vehicle supplier or identify additional designated vehicle suppliers. The franchisor does not guarantee a franchisee’s notes, leases or other obligations and it is unable to estimate whether franchisees will be able to obtain a lease through either supplier or any other third party for any or all of their investment. The franchisor participates in the International Franchise Association’s VetFran Program and offer qualified individuals honorably discharged from any branch of the U.S. Military and who request it at the time of signing a Franchise Agreement a 25% discount off the initial franchise fee.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $59,000 | $59,000 |
| Vehicle (finance option) | $3,000 | $3,500 |
| Vehicle (base purchase price) | $65,000 | $67,000 |
| Equipment and Supplies Package (financed) | $4,000 | $5,500 |
| Equipment and Supplies Package (purchased) | $67,000 | $67,000 |
| Insurance Premium (3 month range) | $1,750 | $2,500 |
| Office Furniture | $0 | $2,200 |
| Office Supplies | $100 | $300 |
| Telephone & Utility Deposits and Fees | $350 | $500 |
| High-Speed Internet Access | $200 | $400 |
| VOIP Telephone Equipment & Services Fee | $455 | $455 |
| Answering Service | $100 | $365 |
| Professional Fees | $0 | $500 |
| Uniforms | $200 | $500 |
| Opening Advertising and Marketing Materials | $0 | $2,200 |
| Training Expenses | $6,000 | $6,000 |
| Mentoring Program | $2,500 | $4,500 |
| Continuing Education Courses | $0 | $2,000 |
| Facility Rent | $0 | $4,000 |
| Business Licenses | $0 | $550 |
| Laser Printer | $150 | $500 |
| DASH Software | $3,000 | $3,000 |
| Insurance Industry Claims Estimating Software | $375 | $375 |
| Security Deposit | $0 | $3,000 |
| Camera | $100 | $300 |
| Additional Funds (three month period) | $20,000 | $35,000 |
| ESTIMATED TOTAL—Finance Option | $101,280 | $137,145 |
| ESTIMATED TOTAL—Purchase Option | $226,280 | $262,145 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | Royalties range from 10% to down to 3%, 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. |
| Transfer Fee | $25,000 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, although any rate will not exceed the maximum permitted by applicable law. |
| Taxes and Fees | Federal, state, or local taxes. |
| Local Advertising | 2% of gross receipts on local advertising and promotion. |
| Marketing Fee | 2% of gross receipts. |
| Annual National Convention Registration Fee | $695 per year. |
| Minimum Equipment and Supply Purchase Requirements | 2% of franchisee’s gross receipts. |
| DASH Software | $500 monthly. |
| IICRC AMRT Course | $595 |
| IICRC Examination Fees | $310 (two exams at $80 each and one exam at $150). |
| Optional Certified Priority Response Program Participation Fees | $79 per job lead, plus costs of additional insurance and credit and criminal background checks. |
| Compliance Tracking Software | $25 monthly. |
| Liquidated Damages | Greater of $100,000 the amount 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 five or the number of years remaining under the initial term. |
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