OpenWorks Franchise Costs, Fees & FDD

Year Business Began: 1983

Franchising Since: 1983

Headquarters: Phoenix, Arizona

Estimated Number of Units: 445

Franchise Description: The franchisor is O.P.E.N. America, Inc. The franchisee will offer commercial janitorial services under the name “OpenWorks”. The franchisor enters into janitorial service contracts with commercial clients. These contracts may then be packaged with other similar contracts to cumulate at one of four levels of a gross monthly dollar amount and assigned to OpenWorks franchisees, who receive the rights to service the contracts under the franchisor’s trademarks and system.
Training Overview: The franchisor will conduct an initial training program for franchisees, their designated manager, the principal owners involved in the business and any of their employees who wish to attend at the same time at no charge to the franchisee. Training consists of several sessions, including virtual classroom lectures, video training, homework assignments, open discussions, and hands-on training. Training facilities include remote classroom settings and at determined on-site locations. The franchisor also may offer continuing education classes, on an optional or mandatory basis, and may charge franchisees for such classes or the platform they are conducted through.

Territory Granted: Unless otherwise allowed in writing by the franchisor, the territory is usually the area encompassing a 60-mile radius from the business address the franchisee lists in their Franchise Agreement. Franchisees will not receive an exclusive territory. Franchisees may seek new business within the territory but are not allowed to solicit business from existing OpenWorks customers or prospects where an active OpenWorks bid (within the last six months) exists. Franchisees are restricted as to the area within which they may solicit business, which must be within the territory.

Obligations and Restrictions: Franchisees must give the franchisor notice of the name and contact information for the designated manager. This is the person who is responsible for the day-to-day management of the franchised business. Franchisees or their designated manager must use their best efforts in the daily operation of the franchised business and devote all their productive time and effort to the management and operation of the franchised business on a full-time basis. Each owner that has a 5% or greater interest in the franchise as well as any officer, manager, or managing member and the spouses of such persons must personally guarantee the obligations under the Franchise Agreement and all other agreements executed, and also must be personally bound by, and personally liable for, breach of every term of the Franchise Agreement. Franchisees are obligated to offer and sell all the services and only the services that the franchisor authorizes them to provide. Franchisees must operate their business in complete compliance with the standards and specifications set out in the manual.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the pre-conditions to obtaining a successor franchise, the franchisor will offer them the right to obtain two additional terms of 10 years each.

Financial Assistance: Franchisees may finance a portion of any marketing fee, subject to the franchisor’s discretion and approval. The franchisor also has an equipment purchase program to finance purchases of equipment for use in its franchisees’ businesses. The franchisor does not guarantee any loan, lease or other obligation franchisees may enter into with a third party. The franchisor does recommend certain independent third party lenders for franchisees to contact. For veterans, OpenWorks will offer a 10% discount off the initial franchise fee, which is deducted from the amount financed.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$2,500	$72,000
Background Check Fee	Up to $80 per individual
Expenses During Training	$0	$500
Uniforms	$0	$400
Computer	$0	$1,500
Additional Supplies	$0	$500
Additional Equipment	$0	$5,000
Organizational Costs	$500	$3,000
Insurance	$1,000	$3,000
Lease	$250	$1,000
Construction and Remodeling	$0	$5,000
Furnishings	$0	$7,500
Additional Operating Funds for 6 to 12 Months	$0	$35,000
ESTIMATED TOTAL	$4,250	$134,480

 
Other Fees

Type of Fee	Amount
Royalties	15% of gross revenue.
Advertising Fund Fee	Up to 3% of gross revenue (currently 2.5% is collected).
Marketing Fees	Three times one month’s billing on a new account or on the increase in an existing account.
Technology and Innovation Fee	Up to 2% of gross revenue (currently 0.5% is collected).
Background Check Fee	Currently up to $80 per background check.
Special Project Fee	0% or 15% or 30% of gross revenue from job.
Initial Training Fee	$250 per group.
Continuing Training Classes	$0 to $150 per class or platform.
Cancellation Charge	$50
Renewal Fee	$2,500
Account Transfer Fee	$50 per account.
Franchise Transfer Fee	$1,000 to $2,500
Document Preparation Fee	$250
Unauthorized Marketing Fee	$200
Trouble Call Fee	$50 per occurrence, plus reimbursement if replacement services are required.
Insurance	Currently 3.6% of gross revenue (subject to change upon notice).
Workers’ Compensation Insurance	Varies based on state of operation.
Supplier Evaluation	The franchisor’s expenses (estimated to range from $100 to $5,000).
Customer Charges	Amount customer charges plus $500/day.
Indemnification	Amount of the franchisor’s liabilities.
Audit Costs	The franchisor’s expenses ($100 to $5,000).
Attorneys’ Fees	Amount incurred by the franchisor.
Interest on Unreimbursed Advances	12% per year.
Interest on Late Payments	Lesser of 21% per year or highest rate allowed by law.
Lost Document Fee	$25 per replacement copy.

The above information has been compiled from the FDD of OpenWorks. Year of FDD: 2025.
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