Coverall Franchise Cost, Revenue & Review 2026
- Investment
- $18K – $63K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 13 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Coverall is a commercial cleaning franchise servicing offices, retail, and facilities under recurring contracts. Franchisees manage small cleaning teams, client relationships, and quality, often working hands-on in the business.
FranchiseVerdict summary · 2026
A Coverall franchise requires a total initial investment of $18K – $63K, including a $16K – $40K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $18K – $63K
- 4th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- 5.0%
- 8th pct Cleaning & Ma…
- Units
- 5,654
- 88th pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $18K – $63K including a $16K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports a non-revenue operating metric rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- GROWTHNegative: net -263 franchised outlets in the latest year (473 opened, 735 closed); 69 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Coverall North America, Inc.
- Parent company
- CNA Holding Corporation
- FDD Item 1, page 9 of the 2024 FDD
- Ultimate parent
- WCP Coverall Topco LLC
- Predecessor
- Majco, Inc.; Triesler Company, Inc.; Coverall of Boston, Inc.; Verica, LLC; Melton Franchise Systems, Inc.; Cavalier Services, Inc.; 4444 International, Inc.; Plymouth Ridge, Inc.; Warjon, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Sole Director
- Charles Daniel
- Incorporated in
- DE
- HQ
- 350 SW 12th Avenue, Deerfield Beach, Florida 33442
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $93.5M
- vs $89.4M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of Coverall
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Charles Daniel
- Headquarters
- FL
- Founded
- 1985
- FDD year
- 2024
- States available
- 41
Can you afford it, and what does the money buy?
Entry cost runs 76% below the typical cleaning & maintenance franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $16K | $40K | |
| Initial Equipment and Supply Packagenot refundable | $990 | $3K | |
| Corporate Filings, Banking, Business License, and Permitsnot refundable | $175 | $500 | |
| Office Supplies & Equipmentnot refundable | $0 | $120 | |
| Apparelnot refundable | $15 | $150 | |
| Misc. Pre-Opening Costsnot refundable | $0 | $300 | |
| Additional Funds (four months)not refundable | $314 | $4K | |
| General Liability Insurancenot refundable | $0 | $1K | |
| Franchise Owner On the Job Accident Insurancenot refundable | $0 | $960 | |
| Non-Conviction Janitorial Fidelity Bond or Alternative Non-Conviction Janitorial Fidelity Bondnot refundable | $24 | $48 | |
| Automobile Insurancenot refundable | $500 | $5K | |
| Workers' Compensation Insurancenot refundable | $104 | $6K | |
| Vehiclenot refundable | $225 | $2K | |
| Total initial investment | $18K | $63K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $18K – $63K
- Top 40% of category vs category
- Liquid capital req'd
- $314 – $4K
- Top 40% of category vs category
- Franchise fee
- $16K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Transfer fee | $500 |
| Renewal fee | $0 |
| Inventory (initial) | $990 – $3K |
| Total fee load | 5.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Coverall is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Coverall unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
Not a revenue figure
- Item 19 type
- a non-revenue metric
- Sample size
- 367
- vs category median 32 · large
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 191 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.0% — below the Cleaning & Maintenance median of 8.3%.
Disclosure
Item 19 reports a non-revenue operating metric rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -13.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance medians
How Coverall Compares
Category median of published Cleaning & Maintenance brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,654
- Opened
- 473
- Last reporting year
- Closed
- 735
- Terminated
- 541
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 15
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -13.1%
- Net unit change over 3 years
- 3-yr CAGR
- -13.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 541
- Not renewed
- 15
- Transferred
- 178
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 69
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 600
- Franchisor's next-year forecast
- Termination rate
- 5.9%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 41 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.
41
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $1.5M
- Median loan
- $117K
- average
- Charge-off rate
- Limited · 13 loans
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 13 loans
- 5-yr charge-off
- Limited · 13 loans
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Vintage analysis
Coverall charge-off rate by loan vintage
Top lenders financing Coverall franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Coverall from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Bank of America, National Association | 3 | $55K | 0.0% |
| 2 | U.S. Bank, National Association | 2 | $45K | 0.0% |
| 3 | Neighborhood Trust Federal Credit Union | 2 | $17K | 0.0% |
| 4 | Loans from Old Closed Lenders | 1 | $325K | 0.0% |
| 5 | Western Alliance Bank | 1 | $611K | 0.0% |
| 6 | Primis Bank | 1 | $25K | 0.0% |
| 7 | Comerica Bank | 1 | $353K | 0.0% |
| 8 | Citizens Trust Bank | 1 | $60K | N/A |
| 9 | Zions Bank, A Division of | 1 | $30K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NYNew York | 4 | 0 | 0.0% |
| CACalifornia | 2 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | -- |
| OHOhio | 1 | 0 | -- |
| TXTexas | 1 | 0 | 0.0% |
| VAVirginia | 1 | 0 | 0.0% |
| WAWashington | 1 | 0 | -- |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Coverall presents HIGH RISK due to accelerating unit decline, chronic litigation over franchisee misclassification, regulatory history, absence of financial transparency, and unprotected territories—suggesting fundamental business model strain.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Extensive litigation history primarily involving franchisee misclassification as independent contractors under various state wage laws (California, Massachusetts, New Jersey). Key settled matters include Awuah/Cooks/AAA Massachusetts settlement ($5.5M). Pending matters include Rivas (California PAGA) and Gonzalez (California). FTC consent decree in 1994 ($100K penalty for disclosure violations.
Largest disclosed settlement: $5,500,000
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
On October 21, 2011, James F. Bellante, Jr., General Manager of our Pittsburgh Support Center, filed for relief under Chapter 13 of the U.S. Bankruptcy Code (United States Bankruptcy Court Western District of Pennsylvania, Pittsburgh), Case No: 11-26498-CMB, and a discharge was granted on November 15, 2016. ... On December 20, 2012, Nicole Ivey, our Vice President of Marketing, filed for relief under Chapter 13 of the U.S. Bankruptcy Code (United States Bankruptcy Court Northern District of Illinois, Chicago), Case No. 12-49720, and a discharge was granted on October 2, 2013. On May 9, 2014, the case was closed. ... On July 1, 2015, Chris Taylor, our General Manager, filed for relief under Chapter 13 of the U.S. Bankruptcy Code (United States Bankruptcy Court Southern District of Ohio), Case No. 1:15bk12594, and a discharge was granted on July 15, 2020. On September 15, 2020, the case was closed.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21: Coverall North America, Inc. is a wholly owned subsidiary; its results are included in the consolidated audited financial statements of Coverall Acquisition, LLC and Subsidiaries (Successor Company). Figures are for the consolidated entity for the year ended December 31, 2023 (most recent) and December 31, 2022. Audit report signed Fort Lauderdale, March 26, 2024 (CPA firm name not present in extracted text). Predecessor Company for financial reporting is CNA Holding Corporation and Subsidiaries.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 51 / 100 verdict
- 01MINORDeclining unit count (-4.4% YoY) indicates a shrinking franchise system despite 20-year maturity
- 02MINORMultiple active class action lawsuits regarding worker misclassification and wage/hour violations create significant legal and operational risk
- 03MINOR1994 FTC consent decree suggests history of deceptive earnings claims and disclosure violations
- 04MINORUnprotected territory creates direct competition risk and pricing pressure from other franchisees
- 05MEDHigh franchise fee ($40,320) relative to low disclosed investment range ($17,917–$62,908) suggests unclear total startup costs
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail18 matters · Item 3
Litigation cases
The franchisor
Pending (4)
Keon Reny Cleaning Service vs. Coverall North America, Inc.
pendingBrought by a franchisee · filed 2023-08-03 · Court of Common Pleas of Allegheny County, Pennsylvania- Civil Division · GD23-9413
“Keon Reny Cleaning Service vs. Coverall North America, Inc. (Court of Common Pleas of Allegheny County, Pennsylvania- Civil Division, Case No. GD23-9413) filed August 3, 2023. Plaintiff, a former franchisee of Coverall, seeks a declaration and finding that Coverall breached the franchise agreement with Keon Reny Cleaning Services.”Page 18 of the 2024 FDD, Item 3
Outcome:“The court sustained Coverall’s motion and stayed the dispute to allow Plaintiff to file arbitration.” (page 19)
Caribe Billie and Quincy Reeves vs. Coverall North America, Inc.
pendingBrought by a franchisee · filed 2019-01-17 · United States District Court, District of Connecticut · 3:19-cv-00092-JCH
“Caribe Billie and Quincy Reeves vs. Coverall North America, Inc. (United States District Court, District of Connecticut, Case No. 3:19-cv-00092-JCH) filed January 17, 2019. Plaintiffs, franchisees of R & B Services, Inc. d/b/a Coverall of Connecticut & Westchester (“RB”), Coverall’s former master franchisee, filed this putative class action”Page 17 of the 2024 FDD, Item 3
Outcome:“Coverall subsequently settled its disputes with both Reeves (in November 2023 for the amount of $20,000) and Flores (in or around April of 2023 for the amount of $15,000).”
Carlos Rivas vs. Coverall North America, Inc.
pendingBrought by a franchisee · filed 2018-06-07 · United States District Court Central District of California · 8:18-cv-01007-JGB-KK
“Carlos Rivas vs. Coverall North America, Inc. (United States District Court Central District of California Case No. 8:18-cv-01007-JGB-KK). On June 7, 2018, Plaintiff, a then-current franchisee, filed a complaint under the Private Attorney General Act of 2004 (“PAGA”) seeking a declaration and finding that Coverall violated the California Labor Code”Page 18 of the 2024 FDD, Item 3
Outcome:“On December 18, 2022, Rivas appealed that decision to the 9th Circuit. That appeal remains pending.”
Sergio Gonzalez v. Coverall North America, Inc.
pendingBrought by a franchisee · filed 2016-11-02 · United States District Court, Central District of California · 5:16-CV-02287-JGB-KK
“Sergio Gonzalez v. Coverall North America, Inc. (United States District Court, Central District of California, Civil Action No. 5:16-CV-02287-JGB-KK) filed November 2, 2016. Plaintiff, a current franchisee, filed this putative class action claiming Coverall violated various sections of the California Labor Code by misclassifying its franchisees as independent contractors,”Page 18 of the 2024 FDD, Item 3
Outcome:“On December 18, 2022, Gonzalez appealed that decision to the 9th Circuit. That appeal remains pending.”
Concluded (11)
Cinthia Yarleque vs. Coverall North America, Inc.
settledBrought by a franchisee · filed 2020-10-30 · American Arbitration Association · 01-20-0015-5079
“Cinthia Yarleque vs. Coverall North America, Inc. (American Arbitration Association, Case No. 01-20- 0015- 5079) filed October 30, 2020. Claimant, a former franchised business filed a Demand for Arbitration with the American Arbitration Association. Claimant alleged that Coverall had misclassified her as an independent contractor”Page 19 of the 2024 FDD, Item 3
Outcome:“This matter settled in December 2021 for $25,000, with no admission of liability by Coverall.”
Ivett Alcazar vs. Coverall North America, Inc.
settledBrought by a franchisee · filed 2020-10-30 · American Arbitration Association · 01-20-0015-5052
“Ivett Alcazar vs. Coverall North America, Inc. (American Arbitration Association, Case No. 01-20-0015- 5052) filed October 30, 2020. Claimant, a former franchised business, filed a Demand for Arbitration with the American Arbitration Association. Claimant alleged that Coverall had misclassified him as an independent contractor”Page 19 of the 2024 FDD, Item 3
Outcome:“This matter settled in January 2022 for $32,000, with no admission of liability by Coverall.”
Jose Munoz vs. Coverall North America, Inc.
settledBrought by a franchisee · filed 2020-10-30 · American Arbitration Association · 01-20-0015-5028
“Jose Munoz vs. Coverall North America, Inc. (American Arbitration Association, Case No. 01-20-0015- 5028) filed October 30, 2020. Claimant, a former franchised business, filed a Demand for Arbitration with the”Page 19 of the 2024 FDD, Item 3
Outcome:“This matter settled in February 2022 for $40,000, with no admission of liability by Coverall.” (page 20)
Pacific Commercial Services, LLC vs. Coverall North America, Inc.
settledBrought by a franchisee · filed 2020-01-24 · American Arbitration Association · 02-19-0003-0718
“Pacific Commercial Services, LLC vs. Coverall North America, Inc. (American Arbitration Association, Case No. 02-19-0003-0718) filed January 24, 2020. Plaintiff, a current Coverall Service Franchisee filed a Breach of Agreement and Lack of Good Faith and Fair Dealings Demand for Arbitration with the American Arbitration Association.”Page 20 of the 2024 FDD, Item 3
Outcome:“This matter settled in August 2021 for by mutual agreement of the parties, with a waiver by Coverall of certain alleged debt and no admission of liability by Coverall.”
Erika Richardson and Luis Silva vs. Coverall North America, Inc.; Sujol, LLC d/b/a Coverall of Southern NJ
settledBrought by a franchisee · filed 2017-12-08 · Superior Court of New Jersey, Middlesex County, Law Division (removed to U.S. District Court, District of New Jersey, 3:18-cv-00532-MAS-TJB) · MID-L-007250-17
“Erika Richardson and Luis Silva vs. Coverall North America, Inc.; Sujol, LLC d/b/a Coverall of Southern NJ (Superior Court of New Jersey, Middlesex County, Law Division, Docket No. MID-L-007250-17) filed December 8, 2017. Plaintiffs, current franchisees of Sujol, LLC d/b/a Coverall of Southern NJ (“Sujol”), Coverall’s Master Franchisee, filed this putative class action”Page 19 of the 2024 FDD, Item 3
Outcome:“This matter settled in May 2022 with a $22,000 payment to Silva and a $17,500 payment to Richardson with no admission of liability by Coverall.”
Randall Richardson and Janitorial Tech, LLC v. Coverall North America, Inc.
settledBrought by a franchisee · filed 2017-06-27 · United States District Court for the Northern District of Georgia, Atlanta Division · 1:17-mi-2405-UNA
“Randall Richardson and Janitorial Tech, LLC v. Coverall North America, Inc. (United States District Court for the Northern District of Georgia, Atlanta Division, Case No. 1:17-mi-2405-UNA) filed June 27, 2017. Plaintiff, a current franchisee, filed this putative class action claiming Coverall has violated various sections of the Fair Labor Standards Act,”Page 20 of the 2024 FDD, Item 3
Outcome:“The material terms of the Settlement were that Coverall: i) paid to Franchisee $27,325.00, which included the purchase price for the assets of Franchisee’s business and customers; and ii) cancelled all remaining balances due Coverall on Franchisee’s Promissory Notes.” (page 21)
Maria Mora v. Coverall North America, Inc., et al.
settledBrought by a franchisee · filed 2014-01-23 · Circuit Court County of Washington, Oregon · C140316 CV
“Maria Mora v. Coverall North America, Inc., et al. (Circuit Court County of Washington, Oregon Case No. C140316 CV), filed January 23, 2014. Plaintiff is a franchisee of Cavalier Services, Inc. (“Cavalier”). Cavalier is an independently owned and operated Master Franchisee of Coverall.”Page 24 of the 2024 FDD, Item 3
Outcome:“On April 10, 2014 a Settlement Agreement was entered into between all the parties by which Cavalier repurchased Plaintiff’s Coverall Franchise for $8,500.00, forgave her obligations to Cavalier for the balance of her promissory note and terminated her Coverall Franchise, effective April 10, 2014.”
Cooks v. Coverall North America, Inc. and Coverall of Boston, Inc.
settledBrought by a franchisee · filed 2013-07-01 · Superior Court, Suffolk County, Massachusetts (removed to the United States District Court for the District of Massachusetts, 13-cv-11802-WGY) · SUCV2013-02373
“Cooks v. Coverall North America, Inc. and Coverall of Boston, Inc. (Superior Court, Suffolk County, Massachusetts, Civil Action No. SUCV2013-02373) filed July 1, 2013. Plaintiff, a current franchisee, filed this purported class action claiming that CBI and Coverall knowingly and willingly i) misclassified its franchisees as independent contractors”Page 21 of the 2024 FDD, Item 3
Outcome:“The matter was settled as part of the settlement described below.”
Sabrina Laguna v. Coverall North America, Inc.
settledBrought by a franchisee · filed 2008-08-08 · Superior Court of California County of San Diego (removed to the United States District Court for the Southern District of California, 3:09-cv-02131-JM-RBB) · 37-2008-00089347-CU-OE-CTL
“Sabrina Laguna v. Coverall North America, Inc. (Superior Court of California County of San Diego, Civil Action No. 37-2008-00089347-CU-OE-CTL) filed August 8, 2008. Plaintiff, a then-current franchisee, filed this purported class action variously claiming that Coverall negligently or intentionally misrepresented that it had sufficient business to satisfy its contractual obligations;”Page 23 of the 2024 FDD, Item 3
Outcome:“The settlement became effective December 15, 2014.” (page 24)
Pius Awuah, et al v. Coverall North America, Inc.
settledBrought by a franchisee · filed 2007-02-15 · U.S. District Court, District of Massachusetts · Civil Action No. 07-10287
“Pius Awuah, et al v. Coverall North America, Inc. (U.S. District Court, District of Massachusetts, Civil Action No. 07-10287) filed February 15, 2007;”Page 21 of the 2024 FDD, Item 3
Outcome:“2) Coverall paid $5.5 Million to the Class; 3) all franchise agreements of the Class were terminated; 4) Customers were transitioned to servicing Class members; and 5) Coverall withdrew from Massachusetts.” (page 23)
United States of America v. Coverall North America, Inc.
concludedGovernment or regulatory action · United States District Court for the Northern District of Illinois · Civil Action No. 94 C 1178
“United States of America v. Coverall North America, Inc. (Civil Action No. 94 C 1178). On March 18, 1994, a Consent Decree was entered in the United States District Court for the Northern District of Illinois in United States of America v. Coverall North America, Inc. (Civil Action No. 94 C 1178).”Page 24 of the 2024 FDD, Item 3
Outcome:“Without admitting liability, we agreed to pay a civil penalty of $100,000 and to be enjoined from not complying with the FTC’s franchise disclosure rule.”
This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 30 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | State in which franchise is located (varies by franchisee) |
| Litigation count | 18 |
View Item 3 litigation summary
Extensive litigation history primarily involving franchisee misclassification as independent contractors under various state wage laws (California, Massachusetts, New Jersey). Key settled matters include Awuah/Cooks/AAA Massachusetts settlement ($5.5M). Pending matters include Rivas (California PAGA) and Gonzalez (California). FTC consent decree in 1994 ($100K penalty for disclosure violations.
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 9 hrs
- Training location
- Regional Support Centers or designated facility and/or customer facilities
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- FranSys
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: FranSys
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coverall franchise?
The total investment to open a Coverall franchise ranges from $18K – $63K, with an initial franchise fee of $16K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coverall franchise owners earn?
Item 19 of the Coverall FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Coverall?
Coverall is franchised by Coverall North America, Inc.. Its parent company is CNA Holding Corporation. The ultimate parent named in the FDD is WCP Coverall Topco LLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Coverall FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Coverall FDD and qualifies whose outlets they describe.
What is Coverall's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Coverall (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 Coverall franchise locations are there?
As of their most recent FDD filing, Coverall has 5,654 total units in the United States, including 5,654 franchised units and 0 company-owned units. 473 new units were opened in the latest reporting year.
Is Coverall a good franchise to buy?
FranchiseVerdict rates Coverall as a B-grade franchise with a verdict score of 51 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
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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.