CoitFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A COIT franchise requires a total initial investment of $64K – $225K, including a $27K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $64K – $225K
- 16th pct Cleaning & Ma…
- Avg gross sales
- $1.1M
- 37th pct Cleaning & Ma…
- Royalty
- 7.0%
- 28th pct Cleaning & Ma…
- Units
- 51
- 44th pct Cleaning & Ma…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 7.4x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1963. Systems this mature have refined operations and brand recognition.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $64K – $225K including a $27K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $447K).
- Verdict A (Top Quintile) with a risk score of 48/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- COIT SERVICES, INC.
- Incorporated in
- CA
- HQ
- 897 Hinckley Road, Burlingame, CA 94010
- Auditor
- Mayer Hoffman McCann P.C.
- Audited financials
- Franchisor revenue
- $35.4M
- vs $35.8M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
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).
- CEO
- Robert L. Kearn
- Headquarters
- CA
- Founded
- 1950
- FDD year
- 2024
- States available
- 24
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $27K | $27K |
| Working capital (3–6 mo) | $15K | $50K |
| Equipment, build-out, other | $22K | $148K |
| Total initial investment | $64K | $225K |
Source: COIT 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$107K
10.0% margin
Unlevered ROIC
60%
EBITDA / total invested capital
Payback
20 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $64K – $225K
- Better than avg vs category
- Liquid capital req'd
- $15K – $50K
- Better than avg vs category
- Franchise fee
- $27K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $447K
- Item 19 type
- gross_sales
- Sample size
- 37 units
- vs category median 31
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 204 Cleaning & Maintenance brands
Revenue is 7.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Cleaning & Maintenance averages
How Coit Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 51
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +5.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $5.8M
- Median loan
- $525K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Coit's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Mayer Hoffman McCann P.C.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 48 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Number of Households |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 58 hrs
- POS system
- COES (COIT Order Entry System)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: COES (COIT Order Entry System)
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
COIT · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a COIT franchise?
The total investment to open a COIT franchise ranges from $64K – $225K, with an initial franchise fee of $27K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do COIT franchise owners earn?
According to Item 19 of the COIT FDD, the average gross sales per unit is $1.1M. The median is $447K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is COIT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for COIT (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many COIT franchise locations are there?
As of their most recent FDD filing, COIT has 51 total units in the United States, including 38 franchised units and 9 company-owned units. 2 new units were opened in the latest reporting year.
Is COIT a good franchise to buy?
FranchiseVerdict rates COIT as a A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent COIT, you can request corrections or provide updated information.
Claim this brandOther Cleaning & Maintenance franchises
Compare similar franchise opportunities in the Cleaning & Maintenance category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.