About Spaulding Decon Franchise
Spaulding Decon is a specialty cleaning and decontamination franchise that has been offering franchise opportunities since 2015.
The brand provides biohazard cleanup, crime scene remediation, hoarding cleanup, mold removal, and other specialized decontamination services for residential and commercial properties.
The franchise fee is $45,000.
Spaulding Decon Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | The greater of (i) eight percent (8%) of weekly Gross Sales, or (ii) the Minimum Royalty. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Brand Fund Contribution: The greater of (i) three percent (3%) of weekly Gross Sales, or (ii) $140 per week. Local Marketing Requirement: The greater of (i) two percent (2%) of Gross Sales from the prior month, or (ii) $2,500 per month. | National brand fund |
| Total Investment Range | $95,410 – $160,950 | Includes build-out, inventory, working capital |
The investment range of $95K–$161K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of (i) eight percent (8%) of weekly Gross Sales, or (ii) the Minimum Royalty.) and marketing fee (Brand Fund Contribution: The greater of (i) three percent (3%) of weekly Gross Sales, or (ii) $140 per week. Local Marketing Requirement: The greater of (i) two percent (2%) of Gross Sales from the prior month, or (ii) $2,500 per month.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $45,000 |
| Initial Equipment and Supplies | $35,000 | $50,000 |
| Computer, Software, Initial Technology Fee System, Licenses and Certifications | $5,700 | $6,000 |
| Utility Deposits | $0 | $200 |
| Insurance Deposits and Premiums | $3,000 | $5,000 |
| Travel and Lodging for Initial Training | $1,800 | $3,500 |
| Initial Training Fee | $4,900 | $4,900 |
| Professional Fees | $1,500 | $2,000 |
| Business Licenses and Permits | $200 | $400 |
| Commercial Vehicle | $8,950 | $11,950 |
| Commercial Vehicle Wrap | $4,000 | $4,000 |
| Storage Unit or Enclosed Trailer | $360 | $3,000 |
| Additional Funds – Initial period of 3 months | $20,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $10,000 |
| Technology Fee | $300 per month |
| Audit Fee | Actual costs |
| Royalty Payment Late Charge | $250 per occurrence |
| Gross Sales Report Charge | $250 per occurrence |
| Financial Reporting Late Charge | $250 per occurrence |
| Interest Charges | One and one half percent (1.5%) per month. |
| Estimating Fee | Up to ten percent (10%) of the gross amount of the estimate. |
| Initial Training for Additional Employees and Supplemental Training | $1,500 per individual (additional); $4,900 for up to another two (2) people (different date); $500 per person per day (supplemental at franchisee location). |
| Annual Conference | Not exceed $1,000 (fee); $3,000 fine for failure to attend. |
| NSF Check Fee or Failed Electronic Fund Transfer | Interest at 1.5% compounded monthly plus a penalty of $500 per occurrence. |
| Noncompliance | Amount of fees, costs, and/or expenses incurred. |
| Supplier Review; Failure to Use Approved Supplier | Actual costs to review; $5,000 fine per incident. |
| Insurance | Cost to obtain and maintain required insurance, plus a service fee (if franchisor obtains on franchisee's behalf). |
| Indemnification | Actual costs of indemnification |
| Territorial Policy Fee | Up to $20,000 per occurrence. |
| Ongoing Product Purchases | Varies based on sales within Designated Territory |
| Regional Cooperative Contribution | If established, two percent (2%) of monthly Gross Sales (may increase up to 3%). |
| Customer Service and Refunds | Varies under the circumstances, but shall not exceed $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately two (2) weeks |
| Classroom Training | 75 |
| On-the-Job Training | 48 |
| Training Location | our corporate headquarters in Tampa, Florida, or other training facility we designate (which may include remote/virtual training) |
| Additional Training | After the opening of your Franchised Business, we reserve the right to require that you (or your managing owner if you are a corporate entity) attend a system-wide training program (the “System-Wide Training Program”) that we may establish in our discretion. If we establish a System-Wide Training Program, the program will be offered from our affiliate-owned location in Tampa, Florida and you will be responsible for all travel, lodging, food, automobile rental expenses and employee wages that you incur in connection with your attendance. Supplemental training may also be offered at the franchisee's Operations Center for a fee of $500 per trainer per day plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a geographic area that includes a population of 100,000 to 250,000 people (“Mini Market”) or up to 500,000 people (“Standard Territory”) |
| Description | Franchisees operate from a designated territory, which is a geographic area with a population of 100,000 to 500,000 people. While the franchisor will not establish other Spaulding Decon businesses within the franchisee's designated territory, the franchisor retains the right to operate or license others to operate under different marks within the territory, and to establish alternate channels of distribution (e.g., e-commerce, Internet, mail order). Franchisees may accept customers from outside their territory if they do not reside in another franchisee's territory (unless consented) and do not generate more than 10% of Gross Sales from outside their territory. Violations may incur a fine of up to $20,000. The franchisor also reserves the right to service National Accounts within the franchisee's territory without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | ten (10) years |
| Renewal Term | one (1) additional ten (10) year term |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, the franchisee must: (a) notify the franchisor 90-180 days prior to expiration; (b) demonstrate the right to operate the Franchised Business for the renewal term; (c) complete all required renovations; (d) not be in breach of any agreements with the franchisor, affiliates, or major suppliers; (e) satisfy all monetary obligations; (f) sign the then-current franchise agreement (which may have materially different terms); (g) satisfy then-current training requirements; (h) sign a general release; and (i) pay a renewal fee of $10,000. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Franchisor's approval of a transfer is conditioned upon: (a) satisfaction of all monetary obligations to franchisor, affiliates, and suppliers; (b) cure of all existing defaults; (c) execution of a general release by franchisee, principals, and transferee; (d) provision of executed purchase agreement and supporting documents; (e) transferee meeting franchisor's educational, managerial, business, moral character, business reputation, credit rating, aptitude, ability, and financial resource standards, and not being a competitor (unless existing franchisee); (f) transferee executing the then-current franchise agreement for the unexpired term; (g) payment of a $15,000 transfer fee; (h) transferee satisfactorily completing training; (i) compliance with post-termination provisions by franchisee, principals, and family members; (j) transferee obtaining all required permits and licenses; (k) consent from lessors/other parties if required; (l) compliance with all applicable transfer laws; (m) purchase price and terms not being burdensome to transferee; (n) franchisor providing FDD to prospective transferee; (o) franchisor's approval not waiving prior claims; (p) franchisor's right to disclose revenue reports; (q) franchisor's discretion to withhold or condition consent; and (r) franchisee's responsibility for broker commissions. |
| Termination for Cause | The franchisor may terminate the agreement with cause, either automatically or with notice and an opportunity to cure. Automatic termination occurs for voluntary or involuntary bankruptcy, or unauthorized transfer. Termination with notice and without opportunity to cure includes criminal acts, fraud, misrepresentation, failure to complete initial training, repeated breaches (two or more written notices within 12 months, or three or more notices whether cured or not), material breach of other agreements, misuse of proprietary marks or confidential information, health code violations, in-term restrictive covenant violations, liens against assets not released within 30 days, insolvency, abandonment, offering unauthorized products/services, unapproved purchases, misuse of proprietary software, failure to maintain insurance, non-compliance with government regulations, government actions creating uneconomical obligations for franchisor, anti-terrorist activities non-compliance, personal use of business property, insufficient funds (3+ times in 12 months), or failure to attend the Annual Conference for two consecutive years. Termination with 15 days' notice to cure applies to nonpayment, under-reporting of gross sales, failure to endorse checks, failure to open, interruption of service, failure to personally supervise operations or employ adequately trained personnel, quality control failures, conduct adversely reflecting on the system, and failure to procure licenses/permits or secure an Approved Vehicle. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | During the term of the agreement, the franchisee, its principals, and immediate family members may not own, maintain, engage in, be employed by, lend money to, extend credit to, or have any interest in any competing business offering decontamination services. After termination or expiration, for two years, they may not engage in any business competing with the franchisor by granting franchises or licenses, nor may they own, maintain, engage in, be employed by, or have any interest in any competing business within the granted territory or a 15-mile radius of any licensed territory, or interfere with the franchisor's business relationships. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or at least one principal) must personally supervise the day-to-day operations and devote full-time attention to the business. During the initial six months, the owner may not have a full-time job outside the franchised business. A designated manager, if appointed and approved by the franchisor, must also successfully complete initial training and devote full-time efforts to management. If a designated manager leaves, a replacement must be approved and trained within 15 days. |
| Required Suppliers | pay-per-rank/click (PPR) marketing, search engine optimization (SEO) marketing, the Approved Vehicle, Vehicle Wrap, Business Management Software, Estimating Software, Initial Equipment Package, and certain chemicals. |
| Supply Restrictions | Franchisees must operate in strict conformance with franchisor's methods, standards, and specifications. Only Approved Products and Services may be offered. The franchisor has the right to require purchase or use of certain items, including vehicles, accounting software, paint, signage, and other equipment/inventory, from the franchisor or approved third-party suppliers/distributors. |
| Franchisor Revenue from Suppliers | $6,493 in revenue from franchisee’s required purchases over our past fiscal year ending December 31, 2021, or 0.36% of our total revenue of $1,781,744 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We will not guarantee your note, lease or other obligation. |
Spaulding Decon Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Spaulding Decon 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.
Spaulding Decon System Growth
Spaulding Decon currently operates 37 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 8 | 2 | 20 |
| 2020 | 15 | 10 | 30 |
| 2021 | 10 | 0 | 40 |
Transfers: 4 | Closures: 12
State Registrations
Registered in 15 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Frazier & Deeter, LLC for year ending December 31.
Spaulding Decon Franchise — FAQ
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