Heaven's Best Carpet Cleaning Franchise Costs, Fees & FDD

Year Business Began: 1983

Franchising Since: 1998

Headquarters: Rexburg, Idaho

Estimated Number of Units: 420

Franchise Description: The franchisor is HB Franchises, LLC. The franchisor offers franchises to qualified individuals and entities to own and operate a franchise under its “Heaven’s Best” service marks, trade names, programs, and systems. Franchisees offer quality residential and commercial carpet, flooring, and upholstery cleaning and restoration products and services to the public.
Training Overview: The franchisor will provide an approximately four to five-day training and familiarization program before the start of the business. Training is held at the franchisor’s headquarters, currently in Rexburg, Idaho. Franchisees or their manager (if any) must complete the initial mandatory training program to the franchisor’s satisfaction within 180 days of the date of the Franchise Agreement. At the franchisee’s option and upon not less than 30 days’ prior written notice to the franchisor, franchisees may receive additional training at the franchisor’s headquarters or at other agreed upon locations. This additional training may include work experience and observation of the franchisor’s or other franchise operations. The franchisor may provide refresher training programs or seminars and may require that franchisees or their managers attend and complete them to the franchisor’s satisfaction.

Territory Granted: The franchisor will grant franchisees a specific territory within which they will operate their franchised business (the franchise territory). A typical franchise territory consists of approximately 150,000 to 200,000 “persons of population.” The exact location and definition of the franchise territory offered to franchisees will depend upon their and the franchisor’s market analysis, market penetration plans, and franchise placement strategies. So long as the Franchise Agreement is in force and franchisees are not in default in any material provision of the agreement, the franchisor will not establish or allow others to establish a Heaven’s Best business within the franchise territory without their permission.

Obligations and Restrictions: The franchisor recommends that franchisees or one of their owners if they are a corporation or partnership, participate fully in the actual day-to-day operation of the franchise business. However, franchisees are not required to participate in the day-to-day operations of the franchise by the Franchise Agreement or any other contractual obligation with the franchisor. Franchisees may designate a manager to assume responsibility for day-to-day operations. The franchisor requires that franchisees use, offer, and sell only those products and services that it approves in writing. Franchisees must offer all products and services that we designate as required by its franchisees. Franchisees may not offer or sell any other services to their customers except for those services that the franchisor expressly authorizes them to perform in connection with their operation of the Heaven’s Best franchise.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing, they may renew for periods of five years under the terms of the then current Franchise Agreement forms that may have materially different terms and conditions than the original contract.

Financial Assistance: The franchisor may offer financing of up to $16,000 of a franchisee’s first initial franchise fee ($20,000 or $25,900 down, depending on whether they purchase the Schedule A or Schedule B initial equipment and inventory package, the franchisor finances up to the remaining $16,000) at a 6% interest rate, compounded monthly, over 60 months. The franchisor may offer financing of up to 75% of a franchisee’s second and additional initial franchise fees for franchise territories purchased concurrently with the first franchise territory ($4,975 down, the franchisor finances the remaining $14,925 – per additional franchise territory). The same interest rate and 60-month term apply to financing of the initial franchisee fee(s) for the concurrently purchased additional franchise territory(ies). This financing may not be available in certain states in which the franchisor has a state-owner master franchisee or area sales and service representative.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$36,000	$41,900
Advertising	$500	$3,000
Contractor License; Permits; Bonds	$0	$1,500
Office and Computer Equipment; Hardware and Software	$500	$2,500
Vehicle/Decals	$12,000	$35,000
Inventory/Supplies	$300	$1,200
Travel and Living Expenses to Attend Training	$0	$5,000
Insurance ($100 to $250 per month for 6 months)	$600	$1,500
Office Rent and Set-up; Deposits	$0	$3,500
Miscellaneous Opening Costs	$1,000	$2,000
Additional Funds – 6 months	$5,000	$15,000
ESTIMATED TOTAL	$55,900	$112,100

 
Other Fees

Type of Fee	Amount
Royalty Fee	$300 per month per franchise territory up to 200,000 persons of population. If the franchise territory consists of more than 200,000 persons of population, the royalty fee increases by $1.50 per every 1,000 persons of population in excess of 200,000. The franchisor may increase the royalty fee from time to time, but no more than 10% per year.
Product Purchases	Franchisees purchase cleaning and other supplies according to the price list. Franchisees must maintain a minimum 30-day supply.
Advertising Fee	Up to $100 per month per territory. The franchisor may increase the advertising fee from time to time, but no more than 10% per year.
Website/Software Fee	Then-current rates, currently $200 to $700 per month.
Local Advertising Expenditures	Local advertising is encouraged, but done at the franchisee’s discretion.
Regional Advertising Fund Contribution	Up to $1,000 per year per territory, according to a vote of the franchisees in the region.
Grand Opening Advertising	The franchisor recommends that you spend $500 to $1,500 on grand opening advertising and promotion during the first month of operations.
Additional Training	$300 per day and franchisees must reimburse the franchisor for its reasonable out of pocket costs.
Refresher Training Programs and Seminars	$300 per day or then-current reasonable rates.
Annual Convention Fee	Up to $500.
Cost to Attend Annual Convention	$1,000 to $3,500
Step-In Rights Fee	All expense, debts, and liabilities the franchisor incurs during its operation of the franchise, including its reasonable administrative, personnel, and travel costs.
Transfer Fee	Then current fee, currently $500 plus a $1,000 administrative fee.
Renewal	No renewal fee.
Late Charge	1.5% per month, plus a $50 service fee.
Unsatisfied Payment Fee	$50 for each unsatisfied attempt.
Relocation	Franchisees will reimburse the franchisor for its reasonable out-of-pocket costs concerning the relocation.
Audit	The franchisor’s reasonable costs for the audit reveals that the franchisee has used unapproved products or equipment in the operation of the franchise.
Securities Offering	An amount equal to the franchisor’s reasonable costs and expenses (including legal and accounting fees) to evaluate the franchisee’s proposed offering.
Liquidated Damages	An amount equal to the average of the royalty fees payable by the franchisee for the previous 6 months that they conducted the franchise before termination for the balance of the term of the franchise agreement or until the franchisor establishes a new Heaven’s Best franchise in the territory and the new franchisee pays royalty fees for a month equal to or greater than the calculated royalty fees due from the previous franchisee.
Legal Fees and Indemnification	The franchisor’s reasonable costs and expenses.

The above information has been compiled from the FDD of Heaven's Best Carpet Cleaning. Year of FDD: 2024.

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