FranchiseVerdict
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FV-00079·CAUTIONExcellent86FDD 2022

Affordable Remediation & Emergency Services

Cleaning - Commercial & JanitorialFranchising since 2022Website
Investment
$183K – $406K
79th pct Commercial & …
Avg revenue
$1.1M
44th pct Commercial & …
Royalty
8.0%
43rd pct Commercial & …
Units
1
1st pct Commercial & …
SBA default

Bottom line

  • Total investment $183K – $406K including a $60K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $1.1M/year.
  • Rated CAUTION with a risk score of 71/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Affordable Remediation Franchising LLC
Incorporated in
New Jersey
HQ
360 Main Street, Suite 4, Matawan, New Jersey 07747
Auditor
Metwally CPA PLLC
Unaudited

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Affordable Remediation & Emergency Services unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,060,998
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $183K–$406K
Working capital
$
FDD reports $60K–$64K

Unlevered ROIC · per unit

30%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$106K
EBITDA margin
10.0%
Total invested
$357K
Payback
40 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Affordable Remediation & Emergency Services units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$637K

on $3.2M purchase

Total debt

$2.5M

SBA $1.6M + senior + seller note

Overview

About

Franchisees operate emergency response and remediation services (likely water damage, fire restoration, mold remediation, or biohazard cleanup). Day-to-day activities include dispatching crews, managing client relationships, coordinating restoration work, handling insurance claims, and maintaining equipment. The business model relies on rapid response capabilities and local market presence.

CEO
Dominick Defendis, Jr.
Founded
2021
FDD year
2022
States available
1

Item 7 · what it costs

The Vitals

Total investment
$183K – $406K
All-in to open one unit
Liquid capital
$60K – $64K
Cash you must have on hand
Franchise fee
$60K
Royalty
8.0%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.1M
Per unit, per year
Median gross sales
Item 19 type
Company Owned Outlet
Sample size
1 units
vs category median 32 · small
Transparency
3 / 5
vs category median 4 / 5 · below
Revenue rank44th
vs Cleaning - Commercial & Janitorial peers
Investment cost rank79th
Lower investment ranks lower (better)
Royalty rate rank43th
Lower royalty = lower percentile (better)
Unit count rank1th
vs Cleaning - Commercial & Janitorial peers
Risk score rank87th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
0%
vs corporate-owned
2020
0±0
Franchised units
2021
0
Franchised units
2022
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

71
Risk · 0-100
CAUTION71 / 100

This is a nascent franchise system with severe transparency gaps, a financially troubled franchisor, and zero proven operational track record at scale — unsuitable for risk-averse investors.

Score breakdown · what drove the 71 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — indicates the franchisor itself may have financial viability issues
  2. 02MINOROnly 1 unit in system with unknown growth trajectory — cannot validate replicability or system health
  3. 03MEDNo average net income disclosed — impossible to assess actual profitability despite $1.06M average revenue
  4. 04MINORHigh royalty burden (8%) combined with unknown margins creates unpredictable cash flow for franchisees
  5. 05MEDSignificant investment range ($183K-$406K) with no disclosed Item 19 net income — ROI timeline unclear
  6. 06MINOR7-year term is relatively long with no franchisee renewal/exit data provided
  7. 07HIGHSingle unit makes litigation history meaningless — insufficient sample size to validate system stability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population-based
Protected territory
Yes
Initial term
7 years
Renewal term
7 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New Jersey

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
28 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

1 numbers

Locked
(732) 769-••••
NJ

One-time purchase · CSV download · Validation questions included

FDD download

Affordable Remediation & Emergency Services · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above