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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Oxi Fresh Carpet Cleaning’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• average, median, highest, and lowest annual total sales for all 2020 jobs; average and median annual total number of 2020 jobs; and average and median per job price for 2020 jobs for the top fifth, second fifth, middle fifth, fourth fifth, lower fifth, and all 58 Active Operators as of the end of 2020 that operated 182 Oxi Fresh Businesses in Protected Territories throughout the United States

Section I – Background Information

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

Poised for Enormous Growth in 2021

1.  At the end of February 2021, Oxi Fresh Carpet Cleaning said that it ended 2020 strong, despite the difficulties that faced businesses during the year, and that the company is poised to continue its impressive expansion in 2021. The company opened 46 new units during 2020 and was able to meet the increasing demand for carpet cleaning services as people looked to keep their homes clean and safe during the pandemic. This growth and other factors earned Oxi Fresh both a spot in Entrepreneur magazine’s Franchise 500 and the title of a “Top Franchise.”

2.  Jonathan Barnett, founder and CEO of Oxi Fresh, said, “This past year presented unique challenges for all businesses, but Oxi Fresh was able to remain strong. We added dozens of new locations that are serving more and more communities. As we look toward the rest of 2021, we are confident that we will continue to meet the rising demand for cleaning services with our continued innovation, strong network of franchisees, and our committed team.”

3.  In 2020, Oxi Fresh had its strongest week in terms of number of appointments booked; the company also regularly had higher numbers of appointments booked per week in the second half of 2020 when compared to the second half of 2019. This increased demand exemplifies the brand’s excellent position for even further expansion in 2021.

4.  In addition to Oxi Fresh’s accomplishments, the home services franchise category made up nearly 25% of all franchise inquiries in Q4 of 2020. This was an increase of nearly 50% from Q4 in 2019 according to Franchise Insights, which also demonstrates the strength of the industry. As the category continues to see incredible demand, Oxi Fresh’s resiliency and strength continues to position the brand as an industry leader.

5.  Oxi Fresh plans to utilize this increase in demand for home service franchises in 2021 to ramp up its expansion with 70 new locations across the United States. The company is looking to grow its presence in the cities of Boston, Sacramento, Los Angeles, Atlanta, Tampa, and Portland while also expanding in Rhode Island, Connecticut, New Jersey, Ohio, and Alabama, among other markets.

6.  Barnett added, “With almost 450 locations open throughout the United States and Canada, we want to keep pushing forward to continue our mission of providing communities with access to high quality, eco-friendly carpet cleaning services, especially as the pandemic continues. We are eager to surpass the 500 unit mark in 2021 and further strengthen our presence.”

Partners with Water.org to Help Families Gain Access to Safe Water

7.  In mid-June 2021, Oxi Fresh Carpet Cleaning announced that it has donated over $128,000 to the non-profit Water.org since 2015. Over the years, Oxi Fresh’s contributions have empowered more than 13,000 people with long-term access to safe water. This access to water is key to further economic opportunity, education, and improved health.

8.  Oxi Fresh donates to Water.org with every appointment that customers schedule through the brand’s Online Scheduler. The proceeds go towards Water.org’s efforts to help families in Africa, Asia, and Latin America get access to safe water and sanitation solutions.

9.  Jonathan Barnett, founder and CEO of Oxi Fresh, said, “Every company should give back. Philanthropy sends an important message that a business is more than an earnings machine – it’s a part of the global community. Giving shows that we care – that we truly want to make a difference. We couldn’t be more proud of our contributions to such an important and worthwhile cause.”

10.  Hundreds of millions of people lack access to clean water and sanitation, but Water.org is changing lives with every dollar donated. Through partnerships with in-country financial institutions, the organization connects people in need with small, affordable loans to get access to safe water at home. Water.org doesn’t merely give out water – they empower local people and communities so that they can have sustainable, long-term water and sanitation solutions. Barnett said, “They’re a revolutionary organization. We’re amazed by what they’ve been able to accomplish with our donations.”

11.  Water is important to Oxi Fresh Carpet Cleaning. In fact, water conservation has been one of the company’s highest priorities since it was founded in 2006. To date, the carpet cleaning brand has saved many tens of millions of gallons of water with its innovative, low-moisture cleaning process. This method requires only two gallons of water to clean a home instead of the 40-60 gallons required by many traditional steam cleaners.

12.  “One of our goals at Oxi Fresh is to provide our clients with not only a world-class cleaning experience but also unexpected convenience and a green method,” said Barnett. “Many people expect their carpets to take forever to dry, but our water-conserving system dries quickly and greatly reduces water usage. On top of that, we give back.”

Company History

13.  Oxi Fresh Carpet Cleaning was founded in 2006 by Jonathan Barnett in Denver, Colorado. Barnett wanted to change the way people cleaned carpets. According to Barnett, steam cleaning and harsh chemicals were the norm and people had to wait 12-24 hours for their carpets to dry. Barnett developed a carpet cleaning process that was eco-friendly and dried in about an hour. With a significantly faster drying time, the demand for Oxi Fresh Carpet Cleaning exploded and Barnett began franchising right away. In less than six months, Oxi Fresh grew to 17 locations in five states.

14.  Over the next few years, Oxi Fresh continued to grow around the United States. Around 2013, the company introduced both a new and improved upholstery cleaning system and sandless wood floor cleaning services. The following year, Oxi Fresh opened its first international locations in Canada. Oxi Fresh Carpet Cleaning has continued to expand and refine its services and there are now locations all around the United States and a few in Canada.

Entrepreneur’s Franchise 500

15.  Oxi Fresh Carpet Cleaning ranked No. 469 on Entrepreneur’s 2021 Franchise 500 list and No. 79 on Entrepreneur’s 2021 Fastest-Growing Franchises list.

Section II – Estimated Costs

• Detailed estimates of Oxi Fresh Carpet Cleaning franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  339
• Outlets at the End of the Year:  368
• Net Change:  +29

2019

• Outlets at the Start of the Year:  368
• Outlets at the End of the Year:  405
• Net Change:  +37

2020

• Outlets at the Start of the Year:  405
• Outlets at the End of the Year:  402
• Net Change:  -3

Company-Owned

2018

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  8
• Net Change:  -2

2019

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  6
• Net Change:  -2

2020

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  14
• Net Change:  +8

Section V – Financial Performance Representations (Item 19, 2021 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 2020 (the “2020 Jobs”).

• Specifically, the chart shows (i) the annual total sales for all 2020 Jobs on average for each Active Operator, and the corresponding median number; (ii) the total number of 2020 Jobs on average for each Active Operator, and the corresponding median number; and (iii) the average sales price per individual 2020 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 2020

Top Fifth – Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $585,352.84
• Median Annual Total Sales for All 2020 Jobs:  $586,509.11
• Highest Annual Total Sales for All 2020 Jobs:  $1,036,648.44
• Lowest Annual Total Sales for All 2020 Jobs:  $340,205.40
• Average Annual Total Number of 2020 Jobs:  2,964
• Median Annual Total Number of 2020 Jobs:  3,257
• Average Per Job Price for 2020 Jobs:  $197.48
• Median Per Job Price for 2020 Jobs:  $208.12

Second Fifth – Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $265,109.68
• Median Annual Total Sales for All 2020 Jobs:  $274,958.14
• Highest Annual Total Sales for All 2020 Jobs:  $326,874.00
• Lowest Annual Total Sales for All 2020 Jobs:  $210,183.26
• Average Annual Total Number of 2020 Jobs:  1,305
• Median Annual Total Number of 2020 Jobs:  1,324
• Average Per Job Price for 2020 Jobs:  $209.08
• Median Per Job Price for 2020 Jobs:  $202.81

Middle Fifth – Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $174,305.74
• Median Annual Total Sales for All 2020 Jobs:  $170,126.62
• Highest Annual Total Sales for All 2020 Jobs:  $196,775.86
• Lowest Annual Total Sales for All 2020 Jobs:  $156,160.29
• Average Annual Total Number of 2020 Jobs:  901
• Median Annual Total Number of 2020 Jobs:  909
• Average Per Job Price for 2020 Jobs:  $202.81
• Median Per Job Price for 2020 Jobs:  $199.27

 Fourth Fifth – Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $127,880.75
• Median Annual Total Sales for All 2020 Jobs:  $131,254.60
• Highest Annual Total Sales for All 2020 Jobs:  $152,089.96
• Lowest Annual Total Sales for All 2020 Jobs:  $103,597.64
• Average Annual Total Number of 2020 Jobs:  678
• Median Annual Total Number of 2020 Jobs:  696
• Average Per Job Price for 2020 Jobs:  $193.57
• Median Per Job Price for 2020 Jobs:  $189.82

Lower Fifth – Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $80,257.50
• Median Annual Total Sales for All 2020 Jobs:  $83,339.32
• Highest Annual Total Sales for All 2020 Jobs:  $101,327.91
• Lowest Annual Total Sales for All 2020 Jobs:  $50,203.36
• Average Annual Total Number of 2020 Jobs:  434
• Median Annual Total Number of 2020 Jobs:  424
• Average Per Job Price for 2020 Jobs:  $188.00
• Median Per Job Price for 2020 Jobs:  $174.95

Combined Average – All Active Operators

• Average Annual Total Sales for All 2020 Jobs:  $240,420.96
• Median Annual Total Sales for All 2020 Jobs:  $167,843.63
• Highest Annual Total Sales for All 2020 Jobs:  $1,036,648.44
• Lowest Annual Total Sales for All 2020 Jobs:  $50,203.36
• Average Annual Total Number of 2020 Jobs:  1,226
• Median Annual Total Number of 2020 Jobs:  898
• Average Per Job Price for 2020 Jobs:  $197.96
• Median Per Job Price for 2020 Jobs:  $198.35

• This chart is based on the results of the Active Operators in the Oxi Fresh system. An “Active Operator” is a franchisee in the United States that has (i) operated an Oxi Fresh Business for the full year of 2020 by completing at least one job through its Oxi Fresh Business during each calendar month of 2020; and (ii) obtained 100 or more starred Google reviews for its Oxi Fresh Business.

• As noted in Item 11, Oxi Fresh’s current advertising policies encourage franchisees to seek and solicit starred Google reviews for their Oxi Fresh Businesses, as those reviews help establish priority in search engine result rankings and help to drive sales.

• Oxi Fresh does not regard franchisees that have not attained this minimum number of 100 Google starred reviews as actively operating their businesses in accordance with its promotional policies.

• The numbers of Google reviews were measured by Oxi Fresh for purposes of this chart on February 18, 2021.

• The Active Operators included in the chart include only franchisees, and do not include any company-owned or affiliate-owned outlets. They also do not include the results of any franchisees owned in part by individuals identified in Item 2 of the Franchise Disclosure Document.

• Some Active Operators operate multiple Oxi Fresh Businesses in multiple Protected Territories. A franchisee must purchase a separate franchise for each Protected Territory in which it desires to operate.

• The top and second fifth in the chart each include the results of 11 Active Operators, while the middle, fourth, and lower fifth shown in the chart each include the results of 12 Active Operators.

• Oxi Fresh has grouped the results by Active Operator rather than by individual Oxi Fresh Business because the results that Oxi Fresh collects for Oxi Fresh Business operators operating in multiple Protected Territories are combined into a single report for each operator.

• The results in the chart include the results of 58 Active Operators as of the end of 2020 that operated 182 Oxi Fresh Businesses in Protected Territories throughout the United States. There were a total of 145 U.S. franchisees in the system that operated an Oxi Fresh Business for the full year of 2020 by performing at least one job each calendar month, that operated a combined 301 Oxi Fresh Businesses or outlets (not including any company-owned or affiliate-owned outlets).

• As of the start of the year 2020, the Oxi Fresh Businesses of the Active Operators included in this chart had been in operation for periods ranging from under one year to over 14 years each.

• The 2020 Jobs on which the chart is based are all jobs for carpet cleaning, rug cleaning, upholstery cleaning, tile and grout cleaning, and hardwood floor cleaning services that were performed by the Active Operators.

• The 2020 Jobs on which the chart is based are those that were completed and paid for during the year 2020.

• The term “total sales” as used in this chart means the total gross sales received by a franchisee for 2020 Jobs according to the information reported by the franchisee through Oxi Fresh’s scheduling center, not accounting for any tax or other allowances. However, it does not include any “redos” or cancelled jobs as described below.

• If an Active Operator repeats a job to address a problem with the first cleaning (called a “redo”), there is no charge for the redo. Redo jobs are not included in this chart.

• Occasionally, a customer will cancel a job after it is ordered and logged into the database but before the services are performed. Several reasons exist for why customers cancel jobs after they are ordered. Most of the time, a cancelled job arises when a customer discovers a conflict with the date and time selected for the services to be provided. Some cancelled orders are rescheduled for another time. Cancelled jobs are not included in this chart unless rescheduled, in which case the rescheduled job is shown if it was completed in calendar year 2020.

• The amount paid is dependent on the number of rooms and type of rooms to be cleaned. You are generally permitted to charge any amount for the cleaning services you provide through your Oxi Fresh Business, subject to other provisions of your Franchise Agreement and your obligation to comply with the franchisor’s standards, specifications, and Licensed Methods to the extent that they relate to pricing matters.

• No expenses are shown in the chart or taken into account in the average sales listed.

• The information in this Item 19 is based on data collected from the franchisor’s scheduling center in scheduling jobs for the Active Operators and from those reports submitted by the Active Operators to the scheduling center.

Key Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️