In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Oxi Fresh Carpet Cleaning franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Oxi Fresh Carpet Cleaning franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Oxi Fresh Carpet Cleaning franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Oxi Fresh Carpet Cleaning outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Oxi Fresh Carpet Cleaning’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- average, median, highest, and lowest annual total sales for all 2019 jobs; average and median annual total number of 2019 jobs; and average and median per job price for 2019 jobs for the top fifth, second fifth, middle fifth, fourth fifth, lower fifth, and all 57 Active Operators as of the end of 2019 that operated 171 Oxi Fresh Businesses in Protected Territories throughout the United States
Section I – Background Information
24 Things You Need to Know About the Oxi Fresh Carpet Cleaning Franchise
Feeds Frontline Healthcare Workers
1. In late April 2020, Oxi Fresh Carpet Cleaning donated hundreds of meals to healthcare workers at St. Anthony’s Hospital, which is near the Oxi Fresh headquarters in Lakewood, Colorado. The company is planning on future donations to other hospitals as well.
2. Jonathan Barnett, founder and CEO of Oxi Fresh, said, “These are trying times for everyone, but the frontline healthcare workers are really the ones bearing the brunt of this pandemic. Every single day, they go to work to help heal and comfort the sick. They are putting themselves at risk in order to protect our community. They really are heroes.”
3. Out of appreciation for these brave individuals, Oxi Fresh decided to provide meals for the hospital that’s just across the street from their Home Office – St. Anthony’s. On Thursday, April 23rd, Jonathan Barnett and local Firehouse Subs franchisee Brandon Gerstein delivered dozens of boxes of sub sandwiches.
4. According to Gerald Winston Tripp II, the chief medical officer at the hospital, “We are incredibly grateful for the outpouring of support we’ve received from across our communities and this generous donation from Firehouse Subs (and Oxi Fresh Carpet Cleaning) will directly support our front-line associates as they care for our patients.”
5. But providing meals to healthcare workers wasn’t the only way Oxi Fresh was able to help the community. They chose to purchase the meals from Firehouse Subs, a business that also uses the franchising model. “Giving back is important to us,” said Kris Antolak, vice president of Oxi Fresh, “and so is supporting the world of franchising, which employs millions and millions of people. Right now, a lot of those folks are going through a hard time, and so we’re glad that by giving to St. Anthony’s, we were also able to support a fellow franchising business and a neighbor.”
6. Oxi Fresh is also a proud supporter of Water.org. Throughout this pandemic, they’ve still been donating a portion of every online booking to this nonprofit that helps families in need get access to safe water and sanitation solutions.
7. Barnett added, “From its inception, Oxi Fresh was built to give back. And we couldn’t be happier to have found an amazing organization like Water.org to support. They’ve helped literally tens of millions of people through their innovative investment strategies and activism. They’ve made life better for so many, and we’re just happy we can help them with their mission.”
Ranked as Top Growth Franchise by Entrepreneur Magazine
8. In late September 2020, Oxi Fresh Carpet Cleaning announced that it continues to anchor itself as one of the fastest-growing carpet cleaning franchises in North America, having recently been ranked No. 99 by Entrepreneur magazine as one of the top 150 franchises with the most consistent growth over the last three years.
9. In order to qualify for the annual list, companies had to have positive growth of at least five units each year. They were then scored based on a formula that considers their total positive U.S. and Canadian franchise growth over three years, as well as factors that negatively affect growth, such as terminations, non-renewals, and other closures.
10. Jonathan Barnett, founder and CEO of Oxi Fresh, said, “Being recognized as a top growth franchise is a tremendous honor and speaks to the quality and sustainability of our unique franchise system. Of course, this wouldn’t be possible without the hard work and passion of our franchisees who are continuing to provide customers with the highest-quality carpet cleaning experience.”
11. Founded in 2006, this carpet cleaning franchise uses the power of oxygen to provide green carpet cleaning services that leave no sticky residue and are safe for children and pets. What’s more, Oxi Fresh’s cleaning method only requires two gallons of water per home – as opposed to the 40-50 gallons that many steam cleaners need. This enables carpets to dry in one hour, which is far less than the 12-24 hour dry times that result from many traditional steam cleaning methods.
12. In addition to carpet cleaning, Oxi Fresh provides services for rugs, upholstery, hardwood floors, and tile and grout.
13. According to Tracy Stapp Herold, Entrepreneur’s special projects editor who compiled the list, “The healthiest franchise systems tend to maintain steady, sustained growth year after year – which is a good indication that they have the systems in place to support their new franchisees.”
Develops Arizona Market
14. At the end of August 2020, Oxi Fresh Carpet Cleaning announced the start of a new Tucson carpet cleaning location in the Arizona market. The new Oxi Fresh location, which began operations in early August, services the city of Tucson. This new location is owned and operated by Hunter O’Dowd and his parents, Paige and John.
15. This is not the O’Dowds’ first time serving their friends and neighbors through Oxi Fresh. John and Paige have been leading a location serving Mesa, Peoria, Surprise, Goodyear, and Phoenix regions for over a year. After seeing their experiences with Oxi Fresh, Hunter was eager to stretch his entrepreneurial spirit by operating his own Oxi Fresh franchise.
16. Hunter O’Dowd said, “I have always been looking for ways to work for myself, and given my family’s background with Oxi Fresh, this seemed like a great opportunity to become a small business owner. Oxi Fresh’s solid business model provides a clear path for growth, and with the guidance of my parents and Oxi Fresh corporate, I am confident that this new location will be a great success. I look forward to providing a high quality Tucson carpet cleaning service for years to come.”
17. For Hunter, part of that service will be focused on the COVID-19 pandemic. Throughout this challenging time, Oxi Fresh locations have been providing important services in markets across the country. Oxi Fresh’s carpet sanitizing service helps kill odor-causing bacteria in houses, and their hospital-grade hard surface disinfectant meets the EPA’s criteria for use against SARS-CoV-2, the cause of COVID-19.
18. On all jobs, including those from this new Tucson carpet cleaning location, Oxi Fresh operators are required to maintain social distancing, wear the proper personal protective equipment, and follow the CDC’s guidelines regarding hygiene and cleanliness.
19. John O’Dowd added, “Oxi Fresh is synonymous with success in the carpet cleaning industry for a reason. The brand’s innovative technology and proprietary cleaning methods are needed now more than ever. We are eager to utilize Oxi Fresh’s process and products to help Tucson residents create safer, cleaner home environments.”
20. “We are proud to welcome Hunter to Oxi Fresh and look forward to him following in his parents’ footsteps,” stated Jonathan Barnett, founder and CEO of Oxi Fresh. “The O’Dowds understand the important services we provide to our customers and how they can help make homes safer and cleaner. We look forward to seeing the positive impact they will have on the Tucson community.”
21. Oxi Fresh Carpet Cleaning was founded in 2006 by Jonathan Barnett in Denver, Colorado. Barnett wanted to change the way that people cleaned their carpets. Instead of harsh chemicals and steam cleaning, Oxi Fresh uses an eco-friendly method that drys in about an hour.
22. Franchising began immediately and in less than six months, Oxi Fresh had grown to 17 locations across five states. The following year, Oxi Fresh added upholstery cleaning to its core services and continued to grow rapidly. Over the next few years, Oxi Fresh kept growing and expanding its services. Oxi Fresh also refined some its cleaning methods.
23. In 2014, Oxi Fresh opened its first locations outside the U.S. in Canada. Today, there are Oxi Fresh Carpet Cleaning locations all across North America.
Entrepreneur’s Franchise 500
24. Oxi Fresh Carpet Cleaning did not rank on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Oxi Fresh Carpet Cleaning franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Oxi Fresh Carpet Cleaning’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 308
- Outlets at the End of the Year: 339
- Net Change: +31
- Outlets at the Start of the Year: 339
- Outlets at the End of the Year: 368
- Net Change: +29
- Outlets at the Start of the Year: 368
- Outlets at the End of the Year: 405
- Net Change: +37
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 10
- Net Change: 0
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 8
- Net Change: -2
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 6
- Net Change: -2
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The following chart is an historic financial performance representation, providing information regarding those jobs completed by the Oxi Fresh Business operators that qualify as “Active Operators,” as defined below, during the calendar year 2019 (the “2019 Jobs”).
- Specifically, the chart shows (i) the annual total sales for all 2019 Jobs on average for each Active Operator, and the corresponding median number; (ii) the total number of 2019 Jobs on average for each Active Operator, and the corresponding median number; and (iii) the average sales price per individual 2019 Job for the Active Operators, and the corresponding median number.
Average Job and Sales Price Information for Active Oxi Fresh Business Operators During Calendar Year 2019
Top Fifth – Active Operators