FDD Talk: What You Need to Know About the Oxi Fresh Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

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 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Oxi Fresh franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Oxi Fresh’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• average annual total sales for all 2016 jobs, average annual number of 2016 jobs, average per job price for 2016 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 2016 operated 15 Oxi Fresh Businesses in 15 Protected Territories in the State of Colorado

Section I – Background Information

11 Things You Need to Know About the Oxi Fresh Carpet Cleaning Franchise

Donated Nearly $50,000 to Water.org Over Two-Year Partnership

1.  At the beginning of September 2017, Oxi Fresh Carpet Cleaning reported that it had donated $47,959 to support Water.org’s efforts to end the global water crisis. Since partnering with Water.org in 2015, Oxi Fresh has encouraged customers to book their carpet cleanings online, with a portion of each job being donated to Water.org. At the time of the press release, 31,126 jobs had been booked online and contributed to the donation efforts.

2.  According to Water.org’s website, $25 helps provide safe water to one person. With the total amount Oxi Fresh has donated, the carpet cleaning franchise has helped provide safe water for 1,918 people so far.

3.  Oxi Fresh Carpeting Cleaning CEO Jonathan Barnett said, “To be in business in this day and age, it is extremely important to be socially conscious and cause-oriented. We have to play our part in improving the lives of the billions of people we share a planet with. We couldn’t be prouder of our contribution to providing basic human necessities and enabling a life of health and dignity to the world’s most vulnerable.”

Opens First Rhode Island Location

4.  At the end of March, Oxi Fresh Carpet Cleaning announced that it had opened its first Rhode Island location in Warwick. Oxi Fresh of Rhode Island is owned and operated by John Green, who previously served 14 years in the United States Navy Submarine service as a Sonar Technician. After Green was injured and had to end his service with the Navy, he and his wife Naomi participated in a franchise management course at Georgetown University made possible by the United Services Organization.

5.  After extensive research on franchise opportunities, John and Naomi were inspired to open an Oxi Fresh franchise. Green said, “I have always wanted to be part of a company that is environmentally responsible, uses cutting-edge technology and believes that people should get paid a fair living wage. Owning my own business has always been a lifelong dream of mine. Naomi and I are excited to join the Oxi Fresh team.”

Received 100,000th Customer Review

6.  In March of 2017, Oxi Fresh Carpet Cleaning celebrated a company milestone with the 100,000th review of its services, which averages 4.6 out of 5 stars. According to Oxi Fresh, the reviews are based on direct feedback from its customers.

7.  Oxi Fresh founder and CEO Jonathan Barnett said, “We take tremendous pride in delivering the best cleaning experience to our customers, from the moment we first help you book your appointment to the cleaning itself. With 100,000 first-class reviews, there’s no doubt our customers are satisfied.”

8.  In the same press release, Barnett said that Oxi Fresh had plans to open 50 to 60 new territories by the end of 2017. Those new locations will offer Oxi Fresh’s services for rugs, upholstery, hardwood floors, and tile and grout.

Company History

9.  Oxi Fresh Carpet Cleaning was founded in 2006 by Jonathan Barnett in Lakewood, Colorado. It was started as a green carpet cleaning business that services both residential and commercial properties. Just a few months after opening the first Oxi Fresh location, Barnett started franchising the Oxi Fresh concept and there were a total of 17 territories in five states by the end of that year. The following year, Oxi Fresh trademarked the company’s name, its logo, and the phrase “The Way Mother Nature Cleans.”

10.  As Oxi Fresh continued to grow, the company added tile and grout cleaning to its service portfolio and acquired the toll free number 1-877-OXIFRESH. Since then, Oxi Fresh Carpet Cleaning has grown into a widely recognized brand and today, there are over 340 locations across the United States and Canada.

Entrepreneur’s Franchise 500

11.  Oxi Fresh Carpet Cleaning debuted on Entrepreneur’s annual Franchise 500 list in 2009 at No. 308, and has appeared on the list every year since. Its highest rank was No. 126 in 2011, while its lowest rank was No. 484 in 2014.

Section II – Estimated Costs

• Please click here for detailed estimates of Oxi Fresh franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Oxi Fresh’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

• The following chart provides information regarding those jobs completed by Oxi Fresh Business operators in the State of Colorado, U.S.A. (the “Colorado Operators”) during the calendar year 2016 (the “2016 Jobs”).

• Specifically, the chart shows (i) the annual total sales for all 2016 Jobs on average for each Colorado Operator; (ii) the annual number of 2016 Jobs on average for each Colorado Operator; (iii) the average sales for each of the individual 2016 Jobs for the Colorado Operators; and (iv) the percentage increase or decrease in annual total sales in 2016 over 2014 for the Colorado Operators.

Average Job and Sales Price Information for Colorado Oxi Fresh Business Operators During Calendar Year 2016

Top Third – Colorado Operators