About CleanNet USA Franchise
As a CleanNet® franchisee, you will open and operate an independent commercial cleaning and related services business that operates under the CleanNet mark and system.
You will specialize in providing janitorial and related services such as dusting, sanitization, cleaning, and buffing floors, for commercial businesses.
CleanNet USA Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,500 to $69,500 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Billings of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Billings (currently, $0) | National brand fund |
| Total Investment Range | $20,377 – $85,410 | Includes build-out, inventory, working capital |
The investment range of $20K–$85K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Billings) and marketing fee (Up to 1% of Gross Billings (currently, $0)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,500 | $69,500 |
| Initial Cleaning Equipment and Supplies | $1,445 | $2,885 |
| Cellular Phone (for 3 months) | $120 | $450 |
| Computer System and Internet | $1,500 | $2,000 |
| Great Plains Software Package and Software Support | $0 | $5,000 |
| Business Licenses and Permits | $40 | $125 |
| Insurance | $22 | $600 |
| Office Supplies, Stationery | $25 | $600 |
| Business Entity Formation and other Legal & Accounting | $100 | $1,000 |
| Initial Certification Expenses | $125 | $250 |
| Additional Funds (1st 3 Months) | $1,500 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Technology Fee | A reasonable fee (currently, $0) |
| Administrative Fee | 5% on all Accounts (but if you provide all of your own billing services – 2% on all Accounts) |
| Finder's Fee (for Additional Accounts) | Three times the amount of the initial monthly Gross Billings of each new customer |
| Additional Accounts Management Fee | 5% of Gross Billings |
| Contract Negotiation Fee | An amount equal to one month's Gross Billings under the contract |
| Supply Replacement Fee | Actual cost of supplies, plus our then-current administrative fee (currently, $50) |
| Customer Deductions and Rekeying Fee | The actual amount of any customer deductions for non-service or poor service, performance standards failures, or lost key/re-keying fee or penalty imposed by the customer under its contract |
| Interest Charge on Late Payments | Lesser of 18% per annum or the maximum rate allowed by applicable law |
| Legal Costs of Collection | Amount of our reasonable attorney's fees, court costs and expenses incurred by us in enforcing payment |
| Direct Deposit Fee | A reasonable fee (currently, $9.95 per month) |
| Bank Charge Fee | Amount of our bank charges and related fees |
| Business Protection Program Fee | Amount of premium, plus administrative charge of 2.52% of Gross Billings (subject to a $22 minimum premium per month) |
| Replacement Fee for Manual | A reasonable replacement fee (currently, $100) |
| Substitute Performance | Actual costs |
| Insurance | Actual costs, plus a reasonable administrative fee |
| Indemnification | Actual amount |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Generally three days |
| Classroom Training | 15 hours |
| On-the-Job Training | 8 hours |
| Training Location | Columbia, MD and/or Falls Church, VA |
| Additional Training | Optional ongoing continuing education and certification programs, meetings, or seminars may be offered for a reasonable fee. Additional training is not currently required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Usually about 30 miles from your office or home, or a particular county or counties |
| Description | The franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor. The franchisor is obligated to provide initial accounts within a mutually agreed-upon 'Fulfillment Area', typically about 30 miles from the franchisee's home or office or a specific county/counties. There is no minimum territory or Fulfillment Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Conditions | Not in default, in good standing, give notice, complete any required certifications, sign the then-current Franchise Agreement (which may contain materially different terms) and sign a general release (excluding claims under Maryland Franchise Registration and Disclosure Law). |
| Transfer Conditions | All amounts owed must be paid; not in default; sign a general release (excluding claims under Maryland Franchise Registration and Disclosure Law); remain liable for prior obligations, nondisclosure, trade secret protection, and indemnification; transferee completes initial certification at their expense; transferee is qualified; transferee signs then-current franchise agreement; and transferee’s owners guarantee the Franchise Agreement. |
| Termination for Cause | The franchisor can terminate for various curable defaults (e.g., failure to pay fees, maintain standards, submit reports) with 30 days to cure, or for non-curable defaults (e.g., bankruptcy, criminal conviction, misuse of Marks, material misrepresentation, public safety threat, repeated defaults) with immediate effect. |
| Non-Compete Period | During the term and for so long as the information constitutes a 'trade secret' under applicable law |
| Non-Compete Details | During the term, the franchisee and related parties may not injure the goodwill associated with the Marks or misappropriate trade secrets. After termination or expiration, the franchisee may not use any Confidential Information for any purpose other than the operation of the Franchise for so long as the information constitutes a 'trade secret' under applicable state or federal law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | A majority owner is not required to personally participate in providing janitorial services or conduct on-premises supervision. However, the Franchise must always be under direct supervision by a Manager who has completed the Initial Certification Program and devotes sufficient time to day-to-day operations. A Designated Operator (an owner) must be authorized to communicate and make decisions for the franchisee. The Manager and Designated Operator can be the same person. |
| Required Suppliers | Franchisee must purchase administrative services from the franchisor. Franchisee must purchase equipment and supplies from the franchisor or a third party. |
| Supply Restrictions | Franchisee must abide by customer-specified equipment, procedures, or supplies. Franchisor issues mandatory Standards for equipment, procedures, and supplies contained in the Brand Standards Manual. |
| Franchisor Revenue from Suppliers | In fiscal year 2022, the franchisor's revenue from administrative fees, Business Protection fees, equipment and supply sales made through them, and amounts received from approved suppliers was approximately $986,273, or about 7.7% of total revenues of $12,671,717. Where franchisees purchase equipment or supplies through the franchisor from preferred suppliers, the franchisor generally charges the supplier a fee of 15% to 20% of the purchase price. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor offers financing for the initial franchise fee (less a required down payment) over 24 months at 9% interest per annum. Financing for the Finder’s Fee is available with up to a 50% down payment, and the balance financed for 1 year at 9% interest per annum. Financing for equipment and supplies is available for 12 months at 9% interest per annum. No security interests are granted by the franchisee, but all owners must sign a Joinder making them jointly and severally liable. Default can make the entire amount due and may lead to franchise termination. |
CleanNet USA Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
CleanNet USA Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CleanNet USA System Growth
CleanNet USA currently operates 1296 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 67 | 115 | 1455 |
| 2021 | 44 | 113 | 1386 |
| 2022 | 23 | 113 | 1296 |
Transfers: 2 | Closures: 113
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
CleanNet USA Franchise — FAQ
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