DUCTZ Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2003

Headquarters: Ann Arbor, Michigan

Estimated Number of Units: 70

Franchise Description: The franchisor is DUCTZ International, LLC. The parent company is BELFOR Franchise Group, LLC. The franchisor is DUCTZ International, LLC. The parent company is BELFOR Franchise Group, LLC. The franchise offered is for the establishment and operation of a business offering HVAC cleaning and restoration services for residential and commercial dwellings and buildings, utilizing the DUCTZ business system.
Training Overview: Franchisees must successfully complete the franchisor’s JumpStart training program within one month of signing the Franchise Agreement, before attending Business Management and Technical Operations Training and before the opening of the DUCTZ business. During the Jumpstart Initial Training program, with guidance from the franchisor’s training team, along with training manuals and online modules, franchisees must prepare a comprehensive financial plan, review the manuals, complete a territory review, coordinate their initial advertising program, acquire proper insurance, select and lease office space, and acquire all permits, licenses, and approved vehicles. The Business Manager and Technical Operations Training will last up to seven days in duration at the franchisor’s headquarters, the BFG training center or another location designated by the franchisor. The managing owner or, if applicable, the designated manager, must attend the DUCTZ annual convention at least once every two years. The managing owner or, if applicable, designated manager also must attend periodic refresher training courses and conferences, at the times and locations the franchisor determines, and for which it may charge fees.

Territory Granted: Each DUCTZ business will be awarded a geographic territory which includes a designated office territory (DOT), where franchisees may advertise, market and solicit business, and a regional service area (RSA), where franchisees may also perform services to customers but where they may not advertise or market their DUCTZ business. A DOT will generally include up to 200,000 households. It will include a minimum of 100 potential “protected partners” located within the DOT. The franchisor will not allow another DUCTZ business or company store to perform work within the DOT unless: (i) the franchisee is not in full compliance of the Franchisee Agreement or (ii) the other DUCTZ business is following their protected partner into the DOT.

Obligations and Restrictions: Franchisees must designate at least one managing owner who will be the franchisor’s primary individual contact with the DUCTZ business and who the franchisor will approve of in its sole discretion. A managing owner may, in the franchisor’s sole discretion, serve as the managing owner of more than one DUCTZ businesses that are owned by franchisees; provided, however, that it may, in its sole discretion, require franchisees to designate a person who will serve as the primary individual contact for this DUCTZ business. The franchisor must approve of the designated manager in writing, which it may grant in its sole discretion. Franchisees must offer and provide all of the services that the franchisor periodically requires for DUCTZ franchisees in the manner it prescribes. Franchisees may not market or perform any duct or HVAC cleaning services that the franchisor has not authorized, including those listed on the then-current exception list, or other insurance restoration services, without the franchisor’s expressed, prior written approval. Following the first full year of operation, DUCTZ businesses must maintain minimum levels of monthly gross sales.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional term of 10 years is available, if requirements are met.

Financial Assistance: The franchisor may offer franchisees financing for a portion of the initial franchise fee if they meet qualifications. The franchisor assists in providing certain information and guidance for the processing of 7(a) and 504 Small Business Association loans. Other than described, the franchisor will not guarantee any notes, leases or obligation. The franchisor offers initial franchise fee discounts to veterans of U.S. Armed Forces who have been honorably discharged or otherwise meet the requirements of the VetFran program or to first responders who meet the franchisor’s requirements.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,900	$74,900
Initial Package Fee	$26,710	$26,710
Hand Tools, Miscellaneous Supplies	$0	$700
Food and Lodging While Training, Not Including the Cost of Transportation	$1,200	$3,000
Vehicle with Up-Fitting	$77,000	$82,000
Full Time Technician for 3 Months	$0	$7,200
Computer System	$0	$1,500
QuickBooks Online	$84	$225
Fiber-Optic Internet, Cable or Satellite High Speed Internet, Anti-Virus Software and Electronic Mail	$270	$475
Insurance for the First 3 Months	$1,200	$3,500
Business Telephone	$0	$144
ASCS Training and Certification	$0	$1,620
Real Estate or Storage for the First 3 Months	$0	$4,500
Marketing	$1,500	$1,500
Additional Funds for the First 3 Months	$9,000	$20,000
ESTIMATED TOTAL	$166,864	$227,974

Other Fees

Type of Fee	Amount
Royalty	10% of gross sales generated; if franchisees fail to achieve the minimum gross sales that the franchisor designates it may collect a minimum royalty.
Brand Marketing Fee	Up to 1% of gross sales, if established.
Additional Training or Assistance Hosting Fee	$50 - $500 per person depending upon the type of training, conducted at the corporate training facility, or the then current fee.
Technology Fee	The then current fee, which is presently $45 per week.
Convention, Regional Meetings and/or Additional Training	The then current fee, which is currently (a) $1,000 max per person to attend the annual convention, and (b) $0 - $200 per person per event for regional meetings and/or additional training.
Transfer Fee	The then current fee, per territory; presently this is $9,900 if transferred to a new DUCTZ franchise owner, or $3,000 if transferred to a current DUCTZ franchisee.
Transfer of Corporation Fee	$500
Broker Fee - Resale	If franchisees authorize the franchisor to enlist a third party broker to locate the transferee, there will also be a broker fee, which currently is approximately 10% of the sale price, or $30,000, whichever is higher.
Outstanding Royalties, Support Fees, and Other Fees of Transferor	Actual costs. Will vary under circumstances.
Renewal Fee	20% of the then current initial franchise fee.
Late Report Fee	$20 per week that a report is late.
Late Payment Fee	5% of amount due or $50 per week, whichever is greater.
Administrative Fee	The then current fee, which is presently $500 per transaction.
Collection Fee	The then current fee, which is presently up to 10% of gross amounts collected on the franchisee’s behalf.
Non-Sufficient Funds (NSF) Fee	The then current fee, which is presently $50 per NSF.
Convention Non-Attendance Fee	The then current fee, which is presently $1,000.
Audit	Due only if an inspection is necessary. Cost of inspection or audit estimated at $2,500-$3,500, plus 100% of understated royalty and interest, at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater, and all late fees, from the date originally due until the date of payment; if an understatement of royalty is greater than 3%, franchisees also must pay the franchisor an additional penalty fee equal to 10% of the total amount of the understated gross sales.
Non-Compliance Fees	The then-current fee, which is presently up to $10,000 for each incident of out-of-territory conduct, or $5,000 per instance for other non-compliant acts or omissions.
Insurance	Cost of insurance; If franchisees fail to maintain the required insurance, the franchisor has the right to procure insurance on their behalf and they must pay the franchisor, on demand, for the costs and premiums it incurs.
Interest Fee	18% per annum or the maximum permitted by law.
Indemnification	Actual costs. Will vary under circumstances.
Costs and Attorneys’ Fees	Actual Costs. Will vary under circumstances.
NORA Fee	None currently assessed; if the franchisor manages accounts through a national or regional accounts program franchisees will pay up to 5% of gross sales.

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