Bottom line
- Total investment $18K – $63K including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
- 18 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 Coverall unit return on the cash you put in?
Unlevered ROIC · per unit
248%
Above typical band (30–60%)
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.
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 · 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)
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
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.
Score breakdown · what drove the 63 / 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
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.
FDD download
Coverall · FDD (2024) PDF