DuctzFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A DUCTZ franchise requires a total initial investment of $164K – $225K, including a $50K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $778K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $164K – $225K
- 63rd pct Cleaning & Ma…
- Avg gross sales
- $778K
- 30th pct Cleaning & Ma…
- Royalty
- 10.0%
- 50th pct Cleaning & Ma…
- Units
- 63
- 50th pct Cleaning & Ma…
- SBA default
- 12.5%
- 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 4.0x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 68 to 63 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $164K – $225K including a $50K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $778K/year (median $605K).
- Verdict B (Above Average) with a risk score of 57/100.
- System contracting at -7.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- DUCTZ International, LLC
- Parent company
- BELFOR Franchise Group, LLC
- Incorporated in
- MI
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $30.1M
- vs $29.5M prior year
Overview
About
DUCTZ franchisees operate air duct and HVAC cleaning services, providing residential and commercial duct cleaning, sanitization, and related indoor air quality solutions. Day-to-day operations involve scheduling service calls, managing field technicians, conducting on-site inspections and cleaning, and handling customer acquisition and retention. This is a service-based business model requiring technical expertise, fleet management, and direct customer interaction.
- CEO
- Sheldon Yellen
- Headquarters
- MI
- Founded
- 2004
- FDD year
- 2026
- States available
- 21
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $9K | $20K |
| Equipment, build-out, other | $105K | $155K |
| Total initial investment | $164K | $225K |
Source: DUCTZ 2026 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
$47K
6.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $164K – $225K
- Near category avg vs category
- Liquid capital req'd
- $9K – $20K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- Up to 1% of Gross Sales
- Total fee load
- 56.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Technology fee | $45 |
| Transfer fee | $10K |
| Renewal fee | $10 |
| Total fee load | 56.0% of rev |
At 56.0% total fee load, roughly $436K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $778K
- Per unit, per year
- Median gross sales
- $605K
- Item 19 type
- Historical
- Sample size
- 36 units
- vs category median 31
- Range (low → high)
- $22K→$2.0M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 204 Cleaning & Maintenance brands
Revenue is 4.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Cleaning & Maintenance averages
How Ductz Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 63
- Opened
- 6
- Last reporting year
- Closed
- 7
- Turnover rate
- 11.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.6%
- Net unit change last year
- 3-yr CAGR
- -7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $2.0M
- Median loan
- $170K
- 50th percentile
- Charge-off rate
- 12.5%
- 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)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ductz's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DUCTZ presents elevated risk due to declining unit count, lack of profitability transparency, and questionable corporate financial health despite moderate revenue figures.
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 57 / 100 rating
- 01MINORDeclining unit count (-1.6% YoY) suggests system contraction and potential franchisee struggles
- 02MINORNo Item 19 (net income) disclosure creates opacity around actual profitability despite $777k average revenue
- 03MED10% royalty on gross sales is aggressive given undisclosed margins and high initial investment ($163k-$224k)
- 04MINOR5-year term is relatively short, creating early renewal risk and uncertainty for franchisees
- 05HIGH'Going Concern' status is FALSE — ambiguous phrasing suggests financial viability questions at corporate level
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated Office Territory ('DOT') |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 30 hrs
- POS system
- DUCTZ Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DUCTZ Software
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DUCTZ · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DUCTZ franchise?
The total investment to open a DUCTZ franchise ranges from $164K – $225K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DUCTZ franchise owners earn?
According to Item 19 of the DUCTZ FDD, the average gross sales per unit is $778K. The median is $605K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is DUCTZ's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DUCTZ (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 DUCTZ franchise locations are there?
As of their most recent FDD filing, DUCTZ has 63 total units in the United States, including 68 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is DUCTZ a good franchise to buy?
FranchiseVerdict rates DUCTZ as a B-grade franchise with a risk score of 57 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.
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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.