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FDD Talk: The Oxi Fresh Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on April 7, 2016

in Carpet Cleaning Franchise, FDD Talk 2017: Service Franchises, Franchise Earnings

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Oxi Fresh Van

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Oxi Fresh franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for an Oxi Fresh franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Oxi Fresh’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • average annual total sales for all 2014 jobs, average annual number of 2014 jobs, and average per job price for 2014 jobs for the top third, middle third, lower third, and all six Colorado Operators (five franchisees and one affiliate) that as of the end of 2014 operated 14 Oxi Fresh Businesses in 14 Protected Territories in the State of Colorado

Section I – Background Information

Jonathan Barnett started the Oxi Fresh carpet cleaning company in 2006 with the opening of the first location in Denver and started franchising the concept that same year, expanding to 17 locations in five states in less than six months.

The company uses its oxygenated cleaning products to clean both residential and commercial carpets. Utilizing the power of oxygen makes for a greener clean, and the cleaned carpets dry quickly as well.

The number of locations has grown fairly steadily since it started, with domestic franchised locations having reached 284 along with 6 that are company-owned. In the last two years, the company has started expanding internationally and now has 6 locations outside the U.S., for a grand total of 296 locations.

Here’s how Oxi Fresh powers out the dirt in the carpet cleaning industry:

A Greener Clean

Oxi Fresh claims to be the greenest carpet cleaner on the planet, although it’s not the only franchise to make that claim. Compared to traditional steam cleaners, the company claims its methods are environmentally friendly and saves 58 gallons of water per home.

Effective Cleaning

One of the traditional sore spots with consumers when it comes to carpet cleaning is how long it takes cleaned carpets to dry. With traditional steam cleaning, it feels as if carpets remain so wet for so long that it must become a mildew and mold hazard. Oxi Fresh claims a one-hour dry time with no sticky residue. And customers seem to agree that dirt and stains seem to disappear with an Oxi Friesh cleaning.

The appeal here is huge as the company notes how Mother Nature has always used oxygen to naturally purify the planet. The company has even received registered marks for the phrases The Way Mother Nature Cleans and The World’s Greenest Carpet Cleaner.

Besides oxygen, the company’s machines also lift the carpet pile for deep cleaning rather than compressing it, as some technologies do.

Appeal to Franchisees

While customer satisfaction is important, franchisees are also an essential part of the equation. Oxi Fresh ranks consistently high on franchisee satisfaction rankings, has surprisingly low startup costs plus a powerful brand name to help franchisees create successful carpet cleaning businesses.

The company even offers a Scheduling Center that takes toll-free calls for franchisees at 1-877-OXIFRESH. Scheduling can also happen online through the Oxi Fresh website.

More Than Carpets

Many customers have more than just carpets to be cleaned, and Oxi Fresh meets their needs by also offering tile and grout, upholstery, hardwood floor, and rug cleaning services.

How Green is Green?

Oxi Fresh has done its homework when it comes to backing up its claims to be the greenest carpet cleaner in the world. In 2011, one of its core cleaning products achieved the EPA’s Design for the Environment certification.

The company practices water conservation, uses energy-efficient machines, recycles in the field and at the office, and uses cleaning products safe for children and pets.

The company also donates $2 for every online booking to water.org, a non-profit started by Matt Damon and Gary White to end the global water crisis.

Appealing Core Values

Turning FRESH into an acronym, the company’s stated core values include Friendly, Respectful, Ethical, superior Service, and Have a good attitude to enjoy all that life has to offer.

Section II – Estimated Costs

  • Please click here for detailed estimates of Oxi Fresh franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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