Bottom line
- Total investment $64K – $225K including a $25K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $447K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 COIT unit return on the cash you put in?
Unlevered ROIC · per unit
60%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 COIT units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$640K
on $3.2M purchase
Total debt
$2.6M
SBA $1.6M + senior + seller note
Overview
About
COIT franchisees operate professional carpet, upholstery, and tile cleaning services for residential and commercial customers. Day-to-day operations include managing service crews, scheduling appointments, performing or overseeing cleaning jobs, and handling customer relations and billing. Revenue comes from both labor-intensive services (7% royalty) and product sales like cleaning agents and treatments (3.5% royalty).
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
COIT presents moderate-to-elevated risk due to lack of profitability transparency, stagnant franchisee base, and unclear unit economics relative to investment size.
Score breakdown · what drove the 49 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot validate true profitability or ROI against $63,988–$224,988 investment range
- 02MINOROnly 51 units with unknown growth trajectory — suggests stagnant or declining system that may lack momentum and support infrastructure
- 03MEDHigh royalty burden (7% services + 3.5% goods) combined with undisclosed margins — franchisees may struggle to achieve stated $1.07M average revenue profitability
- 04MINORWide investment range ($160K spread) indicates inconsistent startup costs and unclear path to the advertised average revenue
- 05HIGHNo litigation disclosed but small unit count limits statistical significance — reputational or operational issues may not yet surface publicly
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
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
COIT · FDD (2024) PDF