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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 January 19, 2017

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



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In this FDD Talk 2016 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 2016 FDD
  • Section III – Presentation and analysis of Oxi Fresh’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • average annual total sales for all 2015 jobs, average annual number of 2015 jobs, average per job price for 2015 jobs, and increase/decrease in annual total sales over 2014 for the top third, middle third, lower third, and all six Colorado Operators (five franchisees and one affiliate) that as of the end of 2015 operated 14 Oxi Fresh Businesses in 14 Protected Territories in the State of Colorado

Section I – Background Information

Oxi Fresh Turns 10 as Founder Seeks Lofty Goals

Oxi Fresh Carpet Cleaning, which bills itself as The World’s Greenest Carpet Cleaner, is celebrating its 10th anniversary in 2016. Founder and President Jonathan Barnett told Franchise Update magazine in November 2016 that his goal was to make Oxi Fresh the No. 1 carpet cleaning company in the world and to make Oxi Fresh a household name.

Barnett started the company in 2006 with one location in Denver, Colorado. By the end of its first year, Oxi Fresh had 17 franchises in five states. It reached the 100-location mark in its third year in business.

Oxi Fresh currently has more than 300 locations in the United States and Canada. The company serves both residential and business customers.



Oxygen-Based Process Saves Water

The company, which provides carpet, upholstery and tile and grout cleaning services, says its oxygen-based carpet cleaning process uses much less water (2 gallons) than traditional methods (as much as 40 to 60 gallons).

This cuts drying time to just an hour, compared to 12 to 24 hours with traditional methods.

Streamlined for Franchisees

The process is streamlined for franchisees through turnkey marketing and a scheduling center that books appointments, handles calls and tracks marketing. Oxi Fresh says initial investment is under $50,000, including equipment.

Large, protected territories are available within the United States and Canada, with discounts offered for multiple territories. Franchisees also can make additional revenue through upholstery, tile and grout, and wood floor cleaning.

Big Jump on Franchise 500

Oxi Fresh was ranked 216th on Entrepreneur’s Franchise 500 list for 2016.

It debuted on the list at No. 308 in 2009 and reached a high of No. 126 in 2011 before plummeting to No. 452 in 2013 and nearly dropping off the list in 2014 with a ranking of No. 484. But the chain crept back up to No. 475 in 2015 and then advanced about 260 places in just one year to achieve its current ranking.

The company finished 2016 with 298 locations, with 292 in the U.S. (including six corporate locations) and six in Canada.

Company Helping Fight Global Water Crisis

Oxi Fresh estimates that it has conserved more than 25 million gallons of water through its carpet cleaning process, but that isn’t the chain’s only environmental focus on water.

In October 2015, Oxi Fresh started a program to benefit Water.org. The organization, founded by entrepreneur Gary White and Academy Award-winning actor and screenwriter Matt Damon, is a nonprofit organization that helps communities worldwide achieve access to clean drinking water and sanitation facilities.

The global water crisis affects one in 10 people worldwide. Millions of people don’t have access to safe drinking water or proper sanitation services in countries within Africa, Asia, Latin America and the Caribbean.



Water.org has already helped more than 4 million people. In 2016, Oxi Fresh began helping this process by donating $2 to Water.org whenever a customer books online through the Oxi Fresh website. By mid-August of 2016, Oxi Fresh announced that it had given $22,886 to the nonprofit, which it said was enough to provide access to safe water and sanitation for more than 900 people.

“Business philanthropy is a relatively simple thing, but it is a very powerful action,” Barnett told the Denver Post. “It sends a huge message that says, ‘We are more than just an earnings machine. We are a partner with you. We are in it with you. We care.’ And that makes a difference. We couldn’t be more proud of our contributions to such an important and worthwhile cause.”

Section II – Estimated Costs

  • Please click here for detailed estimates of Oxi Fresh franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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