CleanNet USA
Bottom line
- Total investment $20K – $85K including a $16K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 74/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 13 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
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 CleanNet USA unit return on the cash you put in?
Unlevered ROIC · per unit
109%
Above typical band (30–60%)
Overview
About
CleanNet USA franchisees operate commercial cleaning businesses, managing janitorial services for office buildings, retail spaces, and other commercial facilities. Franchisees typically hire and supervise cleaning crews to perform nightly or periodic cleaning, handle customer relationships, and manage billing. The business model relies on volume contracts and recurring revenue from multiple client accounts.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 18 states 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.
18
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
CleanNet USA presents HIGH RISK due to a shrinking 6.5% declining unit base, multiple active misclassification and wage-hour lawsuits, prior regulatory violations, complete lack of profitability disclosures, and unprotected territories—indicating a deteriorating franchise system with serious legal and operational red flags.
Score breakdown · what drove the 74 / 100 rating
- 01MINORSystem declining 6.5% YoY (1296 to ~1211 units) indicates shrinking franchise base and potential saturation or dissatisfaction
- 02HIGHMultiple active litigation cases involving misclassification of franchisees as independent contractors raise legal/classification risk and suggest potential reclassification liability
- 03MINORMaryland Securities Division consent order regarding earnings representations and disclosure documentation indicates prior regulatory violations and credibility concerns
- 04MEDNo average revenue or net income disclosed in FDD Item 19—impossible to assess actual unit economics or franchisee profitability
- 05MINORUnprotected territory creates direct competition risk; franchisees can be undercut by other CleanNet franchisees in same geographic area
- 06MINOR10% royalty on gross billings (not net profit) is aggressive; royalties paid regardless of profitability, increasing franchisee financial stress
- 07HIGHWage and hour litigation suggests operational model may pressure franchisees to misclassify their own employees or violate labor laws
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CleanNet USA · FDD (2023) PDF