The Cleaning Authority Franchise Costs, Fees & FDD

Year Business Began: 1978

Franchising Since: 1996

Headquarters: Columbia, Maryland

Estimated Number of Units: 240

Franchise Description: The franchisor is The Cleaning Authority Franchising SPE LLC. The franchisor’s parent company is AB Assetco. Authority Brands, Inc. is the indirect parent company. The Cleaning Authority franchise is a cleaning service business for residential homes similar to a maid service, but may also include carpet cleaning, window cleaning, furniture cleaning, the cleaning of light commercial properties and businesses, and any other type of cleaning service to any customer. The franchisor has two programs that it currently offers – franchises for territories with at least 30,000 designated households (an “enterprise market”) and franchises for territories that have 29,999 or fewer designated households (a “hometown market”). “Designated household” is currently defined by the franchisor as a residence with an estimated annual gross income of at least $70,000, except in California, where the estimated annual gross income for a designated household is $85,000.
Training Overview: Before the franchised business opens, the key person and any owners the franchisor designates must attend and successfully complete an initial training program. The franchisor conducts the training program at the franchisor’s headquarters and schedule sessions as needed. The training program usually lasts 10 business days. After the franchised business opens, the franchisor will make available, at the time(s) and location(s) it designates, such other required and optional training programs as it deems necessary and appropriate.

Territory Granted: The franchise is granted for the approved location only. Franchisees will have a protected territory during the term of the Franchise Agreement, provided they are in full compliance with the terms of the Franchise Agreement and their obligation not to service customers outside of the territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate franchised businesses within the territory, except as described in the FDD. This does not prohibit the franchisor from advertising or soliciting employees or independent contractors in the territory. The territory will be identified by zip codes or as otherwise defined in the Data Sheet of the Franchise Agreement. “Territory” refers to both an enterprise market and hometown market, as applicable.

Obligations and Restrictions: Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the Franchised Business (the “key person”). The key person is required to own at least 10% of the franchised business. The key person must complete the initial training program and must work on premises at the business office. Franchisees are required to offer and sell all products and services that we designate as required items for The Cleaning Authority businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business. Franchisees may not offer products or services through any channel other than those the franchisor has expressly approved.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. Franchisees can renew the franchise for one additional term of 10 years if they meet certain conditions.

Financial Assistance: In its discretion, the franchisor may permit franchisees to finance up to 75% of the combined franchise fee and territory fee rather than paying the entire amount in a lump sum when they sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers or any other third-party referral sources. Except as described above, the franchisor does not offer direct or indirect financing to franchisees. The franchisor will not guarantee a franchisee’s promissory note, lease, or other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Territory Fee	$11,250	$45,000
Franchise Fee	$15,000	$20,000
Computer, including Training Software Access Fee	$1,750	$2,750
Washer, Dryer & Furniture	$1,850	$3,350
Cleaning Equipment and Supplies	$2,500	$3,500
Travel and Living Expenses While Training	$3,250	$4,250
Insurance and Insurance Deposits for 3 Months	$5,500	$7,500
Opening Inventory	$2,500	$3,000
Office Rent for 3 Months Plus 1 Month Security Deposit	$6,000	$12,000
Vehicle Lease or Purchase	$0	$2,000
Full Time Manager	$0	$13,750
Additional Funds for 3 months	$27,000	$30,000
ESTIMATED TOTAL	$76,600	$147,100

 
Other Fees

Type of Fee	Amount
Royalty Fee	The standard royalty is 6%. Reduced rates apply in certain circumstances.
Brand Fund Contribution	For both enterprise markets and hometown markets, 1% of gross revenue or $200 per week, whichever is less.
Local Marketing Fee	Currently $0.374 multiplied by a percentage of the designated households in the territory (9% to 13% depending on the franchisee’s number of customers, with lower thresholds for hometown markets).
Key Account Programs	Will vary under circumstances and may be determined based on number of participating franchisees or other factors.
Call Center Fee	Currently $2.58 per call with a new prospective customer and $3.05 per call for any other calls.
Technology Fees	Currently, the software access fee is $36.58. Beginning July 1, 2025, the software access fee will increase to $40.24.
Brand Fund Materials	The franchisor’s costs.
Additional Opening Support Fee	A reasonable fee, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel.
Training Fees – Pre-Opening	None, unless franchisees request and the franchisor agrees to accept extra trainees. $1,000 per day per extra trainee plus the trainers’ reasonable costs and expenses, when applicable.
Training Fees – Remedial and Optional Training	None currently.
Annual Conference	Determined by us based on the franchisor’s anticipated costs of the conference. The attendance fee may vary based on the location of the conference, the number of attendees under the franchisee’s registration, the timing of the registration relative to the conference date, and other factors.
Non-Attendance Fee	$500 for the first missed conference and then $2,000 for any conference missed consecutively thereafter.
Service Deficiency Fee	The franchisor’s costs.
Transfer Fee	Generally, $10,000.
Change of Ownership Fee	Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) applicable training fees for the individuals the franchisor requires to attend training.
Procurement of Insurance	Cost of insurance plus reasonable fee of up to 25% of total insurance premium cost.
Vendor Review	The franchisor’s reasonable costs, plus the reasonable travel, meal and lodging expenses of the franchisor’s vendor review personnel.
Management Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Step In Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Interest	12% per annum or the maximum rate permitted by applicable law, whichever is less.
Late Fee	$100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence.
Insufficient Funds Fee	$50 or the amount the bank charges the franchisor due to the insufficient funds, whichever is greater.
Indemnity for Tax Withholding	Amount of any penalties, interest, and expenses the franchisor incurs.
Audit Costs	The franchisor’s costs and expenses of conducting audit, including travel and lodging.
Non-Compliance Fee	1% of gross revenue.
Enforcement Costs	The franchisor’s actual costs and expenses.
Defense Costs	The franchisor’s actual costs and expenses.
Indemnification	The franchisor’s actual costs and expenses.
Liquidated Damages	The greater of: (i) two years of royalty fees (calculated as the average royalty fees per payment period in the year preceding the termination of the Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $100,000.
De-Identification Fee	The franchisor’s costs.

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