About COIT Franchise
COIT is one of the longest running home and commercial cleaning service franchises in the United States, offering opportunities since 1963.
Each location provides professional carpet cleaning, air duct cleaning, upholstery cleaning, drapery cleaning, and hard surface floor care to residential and commercial clients.
The brand is recognized for its expertise and reliability across multiple cleaning disciplines.
COIT Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $24,000 to $40,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues or the minimum royalty ranging from $500 to $1,250 per month, whichever is greater after the first year of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Revenues (currently 1.5%) for Branding and Marketing Fund Contribution. Separate contributions for Disaster Restoration, Stone Restore, and Wood Floor Services also up to 2% (currently 1.5%). | National brand fund |
| Total Investment Range | $51,859 – $172,350 | Includes build-out, inventory, working capital |
The investment range of $52K–$172K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues or the minimum royalty ranging from $500 to $1,250 per month, whichever is greater after the first year) and marketing fee (Up to 2% of Gross Revenues (currently 1.5%) for Branding and Marketing Fund Contribution. Separate contributions for Disaster Restoration, Stone Restore, and Wood Floor Services also up to 2% (currently 1.5%).) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $24,000 | $40,000 |
| Advertising and Promotional Costs | $3,000 | $12,000 |
| Rent | $0 | $2,000 |
| Lease Deposit | $0 | $2,000 |
| Utility Deposits | $0 | $200 |
| Leasehold Improvements | $0 | $0 |
| Equipment, Tools and Supplies | $11,500 | $33,000 |
| Vehicle | $800 | $28,000 |
| Insurance Deposit | $0 | $1,000 |
| Computer System | $800 | $10,000 |
| Accounting Software | $199 | $14,000 |
| Travel/Room/Board for Training | $1,000 | $2,000 |
| Internet Services | $60 | $150 |
| Professional Fees | $500 | $3,000 |
| Additional Funds – three months | $10,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | 10% of then-current initial franchise fee for new franchisees (Successor Franchise Fee) |
| Technology Fee | To be established |
| Audit Fee | All costs of inspection and audit (if audit is done because of failure to submit reports or >2% understatement of revenues) |
| Royalty Fee on Disaster Restoration Services | 7% of Gross Revenues (3% for Build-Back/Put-Back and Re-install services or subcontractor services) |
| Royalty Fee on Goods | 3.5% of Gross Revenues |
| Royalty Fee on COIT Stone Restore Services | 7% of Gross Revenues |
| Referral Fees for Disaster Restoration Services | 5% of the Gross Revenues generated by the work referred |
| Lead Fees | To be established (charged by 3rd party providing leads) |
| Team Leader On-Site Assistance Fees for Disaster Restoration Services | The greater of ($1,000 per day or amount billable to customer) plus travel expenses |
| Royalty Fee on Wood Floor Services | 7% of Gross Revenues |
| Disaster Restoration Services Branding and Marketing Fund Contribution | Up to 2% of Gross Revenues (currently 1.5%) |
| Stone Restore Services Branding and Marketing Fund Contribution | Up to 2% of Gross Revenues (currently 1.5%) |
| Wood Floor Branding and Marketing Fund Contribution | Up to 2% of Gross Revenues (currently 1.5%) |
| Cooperative Advertising Payment | To be established (pro rata share) |
| Targeted Data Base Marketing | Cost +10+10 pricing |
| COIT Software License & Support Agreement User Fees | Monthly base fee of $200 plus a $60 per user fee; reimburse for travel expenses |
| Extraordinary Software Support Fees | Currently $250 per hour |
| Administration Fee | To be established (based on processing Special Accounts) |
| Contact Center Services Fees | $8.50 per call received to the Franchise’s Direct Inward Dialing (DID) number and $35 per lead |
| After Hour Call Answering Fee | To be established |
| Intranet Use Fee | $19.95 per month for single user; $15.95 per month for each additional user per franchise |
| E-Mail Hosting Fee | $8.50 per month per user |
| Customer Relationship Management (“CRM”) Software Fee | $50 per month for each sales team per location |
| Late Fees | $50 |
| Interest | Highest legal rate not to exceed 1.5% per month |
| Electronic Fund Transfer (“ACH”) Rejection Fee | $50 |
| Insurance | Amount of premium paid by COIT plus 20% |
| Additional Training and Meeting Fees | $0 to $350 per day of attendance |
| Disaster Restoration Services Training | Up to $3,500 per person |
| COIT Stone Restore Training | Up to $3,500 per person |
| Wood Floor Training | Up to $3,500 per person |
| Interim Franchise Royalty Fees | Franchisor’s then current Royalty Fee plus 2% |
| Interim Marketing Contributions | Franchise System’s then current rate of the Branding and Marketing Fund Contributions plus 2% |
| Right of First Refusal Fee | 10% of then-current initial franchise fee for new franchisees |
| Cost of Enforcement | Cost including attorney fees |
| Indemnification | Cost including attorney fees |
| Sales/Use Taxes | Variable |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to two weeks (Core Services), 5 days (Disaster Restoration), additional week (COIT Stone Restore), additional time (Wood Floor) |
| Classroom Training | 101.5 |
| On-the-Job Training | 60 |
| Training Location | Burlingame, California facility (Core Services), Seattle company-owned location (Disaster Restoration), company-owned or franchised locations or franchisee's location (Stone Restore, Wood Floor) |
| Additional Training | Additional training courses, refresher training for COES software, annual national conventions (mandatory for Designated Principal), and optional COIT College Level I, Level II, and Restoration Summit programs (currently $395 each). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (with reserved rights for franchisor) |
| Exclusive Territory | Yes |
| Territory Size | Typically at least 100,000 households, generally not larger than 500,000 households. |
| Description | Franchisees receive an exclusive territory, typically a geographical area containing at least 100,000 households, but generally not exceeding 500,000 households. The franchisor reserves rights to redefine territory boundaries if the franchisee fails to meet revenue or advertising requirements, develop other businesses under different trademarks, use other distribution channels (Internet, catalog, telemarketing) within the territory, and provide services to 'Special Accounts'. The franchisor can also provide or authorize others to provide non-Core services (Restoration, Stone Restore, Wood Floor) in the territory if the franchisee is not certified or does not offer them. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10-year term |
| Renewal Fee | 10% of then-current initial franchise fee |
| Renewal Conditions | To renew, the franchisee must be in good standing, have complied with the Franchise Agreement, give 9-12 months' notice, execute the then-current franchise agreement, meet current new franchisee standards, complete refresher training, have premises possession rights, and pay a renewal fee of 10% of the then-current initial franchise fee. The new agreement may have materially different terms. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Transfers require franchisor's prior written consent, which will not be unreasonably withheld. Conditions include satisfying all monetary obligations, transferee meeting franchisor's standards (educational, managerial, financial, moral character), executing the then-current franchise agreement, subordination of transferee's obligations to franchisor, compliance with confidentiality, lessor consent (if applicable), business compliance with operational standards, transferee completing initial training, franchisor's approval of material transfer terms, execution of a non-compete by transferor, and payment of a $5,000 transfer fee plus legal expenses. Transfers to competitors or granting security interests are prohibited. |
| Termination for Cause | Franchisor can terminate with immediate effect for reasons such as failure to start/complete training, failure to open/continuously operate the business, bankruptcy/insolvency, non-compliance with laws, unauthorized transfers, false reporting, material misrepresentation, adverse conduct, unauthorized use of Marks/Confidential Information, failure to attend mandatory conventions/training, ownership of a competitive business, understatement of gross revenues by >5%, repeated breaches, or health/safety hazards. Termination with a one-month cure period applies to payment defaults, failure to meet local advertising minimums, failure to furnish reports, non-compliance with system standards, inadequate telephone service, failure to offer mandatory services, operating outside territory, or other breaches. |
| Non-Compete Period | 2 years (post-term); during Initial Term and Interim Term (during-term) |
| Non-Compete Details | During the term, the franchisee and its principals cannot develop, operate, or have an interest in any competitive business, divert customers, or aid a competitive business, with no geographic limitation. Post-term, for two years after transfer, termination, or expiration, the franchisee and its principals cannot be involved in a competitive business within the former territory or within 60 miles of any point in the territory. This restriction has no geographical limitation if the competitive business uses a trade name, service mark, trademark, logo, concept, format, or operating system similar to or suggestive of the Operating System or the Marks. There is also a two-year post-term non-solicitation covenant for employees and clients of the franchisor or other franchisees. All covenants are acknowledged as reasonable and necessary. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The individual with the controlling ownership interest in the franchisee entity must supervise the operation of the franchised business. A full-time manager, who successfully completes initial training, is required, but need not have an ownership interest. All shareholders, partners, members, and other equity owners must personally guarantee all franchisee obligations. |
| Required Suppliers | COIT is an approved supplier for carpet, window covering and upholstery cleaning supplies and equipment, uniforms, vehicle decals, and other materials bearing the Marks. Franchisee is required to purchase and use all COIT private label products and equipment. |
| Supply Restrictions | Franchisor may require franchisees to purchase from approved or designated third-party suppliers, or from the franchisor/affiliates, for specific types, brands, and quality of equipment, products, and services. Specifications for items are provided in Operating Manuals and are subject to change. Franchisor can approve, revoke, or deny approval of items or suppliers. |
| Franchisor Revenue from Suppliers | $584,000 in revenue, representing just under 1.6% of total revenue of $36,402,843 in calendar year 2021. Franchisor receives a cash rebate of 5% from one approved supplier of cleaning chemicals based on franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor offers to finance up to 75% or $30,000 (whichever is less) of the initial franchise fee for a Core Services franchise. Repayment periods range from 36 to 60 months, with an interest rate of 12% per year on the unpaid balance. A personal guaranty is required as security. There is no prepayment penalty. In case of default, the interest rate increases to 18% per year, and the franchisor can demand immediate payment of the entire unpaid balance and terminate the franchise. |
COIT Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
COIT 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.
COIT System Growth
COIT currently operates 40 franchised locations and 9 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 2 | 38 |
| 2020 | 3 | 3 | 38 |
| 2021 | 4 | 2 | 40 |
Transfers: 3 | Closures: 2
Franchisor Financials (Item 21)
COIT Franchise — FAQ
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