CoverallFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Coverall franchise requires a total initial investment of $40K – $63K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 13 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $40K – $63K
- 8th pct Cleaning & Ma…
- Avg gross sales
- N/A
- 56th pct Cleaning & Ma…
- Royalty
- 5.0%
- 6th pct Cleaning & Ma…
- Units
- 5,654
- 84th 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
Only 0.0% of 13 SBA loans charged off, well below the 16% franchise average.
Franchising since 1985. Systems this mature have refined operations and brand recognition.
Franchised units fell from 6507 to 517 over 3 years. Investigate why operators are leaving.
18 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $40K – $63K including a $40K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Initial Package Fulfillment" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict C (Average) with a risk score of 69/100. SBA loan charge-off rate of 0.0% across 13 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Coverall North America, Inc.
- Parent company
- CNA Holding Corporation
- Ultimate parent
- Wellspring Capital Management LLC
- Predecessor
- in Oregon
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 350 SW 12th Avenue, Deerfield Beach, Florida 33442
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $89.4M
- vs $93.5M 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
Coverall franchisees operate commercial cleaning services, typically managing small teams to service office buildings, retail spaces, and facilities on contract. Day-to-day work involves scheduling cleaners, managing client relationships, ensuring quality standards, and handling billing and payroll. Most franchisees work operationally within the business rather than purely managing it.
- CEO
- Charles Daniel
- Headquarters
- FL
- Founded
- 1985
- FDD year
- 2024
- States available
- 41
FDD Item 7 · 2024 filing · 13 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
- $40K – $63K
- Better than avg vs category
- Liquid capital req'd
- $314 – $4K
- Better than avg vs category
- Franchise fee
- $16K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · 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% of gross sales |
| Transfer fee | $500 |
| Renewal fee | $0 |
| Total fee load | 5.0% of rev |
Financial Performance
This brand's FDD disclosed "Initial Package Fulfillment" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Cleaning & Maintenance averages
How Coverall Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,654
- Opened
- 473
- Last reporting year
- Closed
- 735
- Turnover rate
- 13.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -4.4%
- Net unit change last year
- 3-yr CAGR
- -13.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 10
- Terminated (3yr)
- 29
- Transfers (3yr)
- 36
- 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)
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
- 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 13 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Litigation (Item 3)
13 case reference(s): 1 pending, 1 settled.
Largest disclosed settlement: $56,164
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 69 / 100 rating
- 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
- 04MINORNo Item 19 financial disclosure means franchisees cannot verify stated profitability claims independently
- 05MINORUnprotected territory creates direct competition risk and pricing pressure from other franchisees
- 06MEDHigh franchise fee ($40,320) relative to low disclosed investment range ($17,917–$62,908) suggests unclear total startup costs
- 07HIGHGoing Concern flag is FALSE but declining unit economics and litigation suggest potential solvency stress
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 | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| 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 |
| Termination notice | 10 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 18 |
View Item 3 litigation summary
13 case reference(s): 1 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 10 hrs
- Training location
- Off-site and On-site
- 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 $40K – $63K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coverall franchise owners earn?
Coverall does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Coverall's franchise failure rate?
Based on SBA 7(a) loan data, Coverall has a charge-off rate of 0.0% across 13 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 6,507 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 C-grade franchise with a risk score of 69 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
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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.