This post was updated on December 29, 2016 to reflect information from Oxi Fresh’s 2016 FDD (Item 7).
Detailed Estimates of Oxi Fresh Carpet Cleaning Franchise Costs Based on Item 7 (Estimated Initial Investment) of Oxi Fresh Carpet Cleaning’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $33,900
- The Initial Franchise Fee for your first franchise is $33,900 for a Protected Territory of 110,000 households. The Initial Franchise Fee for a second franchise is 75 percent of the then current Initial Franchise Fee for a Protected Territory of 110,000 households. The Initial Franchise Fee for a third and each subsequent franchise is 65 percent of the then current Initial Franchise Fee for a Protected Territory of 110,000 households.
- In certain circumstances, the franchisor may allow you to acquire the right to reserve a Protected Territory for a 90-day period in exchange for a $5,000 deposit. If you acquire the Oxi Fresh business franchise for the reserved territory within the reservation period, the deposit will be applied against the Initial Franchise Fee for that franchise.
2. Cleaning Agents: $0 to $1,000
3. Tile and Grout Cleaning Package: $0 to $500
4. Upholstery Cleaning Package: $0 to $950
5. Hardwood Floor Cleaning Package: $0 to $2,625
- Your primary business will be cleaning of carpets, rugs, and upholstery. You are also permitted, but not required, to offer tile and grout cleaning services and hardwood floor cleaning services as part of your Oxi Fresh business.
- For each Oxi Fresh business that you acquire, when you sign your Franchise Agreement and pay the franchisor the Initial Franchise Fee, you will receive an Initial Equipment and Supplies Package.
- The Initial Equipment and Supplies Package includes one carpet cleaning machine with sprayers and brushes, one upholstery cleaning machine, one vacuum cleaner, and a startup kit of cleaning agents.
- You will need to purchase additional cleaning agents as and when you use up the initial supply of cleaning agents the franchisor provides to you.
- The carpet cleaning machines may be used independently or connected together for faster carpet and rug cleaning services.
- If you elect to offer tile and grout cleaning services, you will need to buy tile and grout brushes that attach to the carpet cleaning machine the franchisor provides to you, and a supply of tile and grout cleaning agents. You will need to purchase one set of tile and grout brushes for each carpet cleaning machine that you operate.
- If you elect to offer hardwood floor cleaning as an additional optional service in your Oxi Fresh business, you will need to purchase a hardwood floor cleaning machine and hardwood floor cleaning agents from the franchisor or its designated supplier.
- You are permitted to purchase additional or replacement carpet cleaning machines, upholstery cleaning machines, vacuum cleaners, tile and grout brushes, and cleaning agents from the franchisor at any time.
- The amount on the high end in the entries on the table represent your cost if you purchase additional items. There is no limit to the number of machines, vacuum cleaners, or other equipment you may use in your Oxi Fresh business.
6. Commercial/Pull System Training Fee: $0 to $700
- At your option, you may choose to participate in the franchisor’s Commercial/Pull System Training Program in addition to the initial training program. The Commercial/Pull System Training Fee is payable at the time that you elect to participate in the Commercial/Pull System Training Program.
7. Initial Training Expenses: $700 to $4,400
- The franchisor does not charge for its initial training program for up to two persons. There is a fee for participation in the Commercial/Pull System Training Program as described above.
- For each training program, you are required to pay the transportation to and from the franchisor’s training site and pay for the living arrangements, food, and other miscellaneous expenses during the time of training for each person attending your training.
- The franchisor estimates that your travel expenses for each training program will be $500 to $2,000.
- The franchisor estimates costs of $100 per day, per person for lodging, food, and other miscellaneous expenses, plus travel expenses to and from your location.
8. Insurance Deposit: $240 to $310
- The franchisor estimates that your initial insurance premium deposit will be approximately $240 to $310 and will include payments for workers’ compensation, general liability, errors and omissions, commercial auto, equipment, and personal property coverage.
- The total insurance premium is estimated at $1,000 to $1,250 per year.
9. Legal and Accounting Fees: $700 to $1,000
- The franchisor estimates that your legal and accounting fees will be $700 to $1,000. These legal fees will be paid by you, if appropriate, in order to obtain an attorney to help form a business entity and review any other contracts or agreements that may be needed by you in order to begin operating your Oxi Fresh business.
- You will also need to retain an accounting or bookkeeping service to assist in the set up and preparation of a financial reporting system.
10. Computer Hardware and Software: $0 to $1,300
11. Office Equipment and Supplies: $100 to $500
- You will need a cell telephone, calculator, executive planner, pens, refrigerator magnets (used as your business cards), work orders, paper, pencils, paper clips, stapler, binder clips, and other miscellaneous items.
12. Uniform Costs: $60 to $120
- The franchise’s uniform is a logoed shirt. You will need to acquire any shirts through the franchisor’s designated supplier as needed.
13. Royalty Fee (1st 3 months): $885
- These fees become payable to the franchisor after you sign your Franchise Agreement and your business opens. The estimate of the Royalty Fee in this table is based on the current flat rate for a single Oxi Fresh business over three months.
14. Advertising and Technology Fee (1st 3 months): $399
- The estimate of the Advertising and Technology Fee in this table is based on the current minimum rate for a single Oxi Fresh business over three months.
15. Job Fee: $920 to $2,350
- The estimate of the Job Fee in this table assumes that you will have only one Co-Op Line, and one Oxi Fresh business. If you acquire one or more optional Market Expansion Lines, or more than one Oxi Fresh business, your estimated initial investment will increase.
16. Marketing Expenses (1st 3 months): $0 to $8,000
- You are not required to undertake any local market advertising, although you are strongly encouraged to do so.
17. Additional Funds (working capital – 3 months): $1,000 to $8,000
- The estimate of additional funds is based on an owner-operated business and does not include any allowance for an owner’s draw or salary. The estimate of $1,000 to $8,000 is for approximately three months.
- The franchisor cannot estimate or promise when or whether you will achieve a positive cash flow or profits.
18. Totals: $38,904 to $66,939
- The franchisor has relied on its and its affiliated companies’ seven years of experience in this industry and the more than ten years of experience in this industry by its president and founder, Jonathan Barnett, in compiling these estimates.