Ductz Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
DUCTZ is an air duct and HVAC system cleaning franchise serving homes and businesses. Franchisees run service crews, handling duct cleaning, sanitizing, and indoor air quality work, with scheduling and account management.
FranchiseVerdict summary · 2026
A DUCTZ franchise requires a total initial investment of $164K – $225K, including a $50K – $75K franchise fee and an ongoing 10.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $164K – $225K
- 65th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 55th pct Cleaning & Ma…
- Units
- 63
- 50th pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · 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 $164K – $225K including a $50K franchise fee, 10.0% ongoing royalty.
- RETURNSAudited financial statements are the consolidated statements of affiliate/guarantor BFG Holdco, Inc. (formerly HRI Holdings, Inc.), not the franchisor DUCTZ International, LLC. Dollars in thousands; FYE December 31. Net Revenue 2025/2024/2023 = $30,117K/$29,538K/$31,072K. 2023 statements were audited by other (predecessor) auditors; BDO audited 2025 and 2024.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- FLAG7 units terminated last reporting year (11.1% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- DUCTZ International, LLC
- Parent company
- BELFOR Franchise Group, LLC
- Ultimate parent
- BELFOR Holdings, Inc.
- CEO title
- Chief Executive Officer
- Sheldon Yellen
- Incorporated in
- MI
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- Not specified in text (BFG Holdco audited financials)
- Audited financials
- Franchisor revenue
- $30.1M
- vs $29.5M prior year
Overview
About
- CEO
- Sheldon Yellen
- Headquarters
- MI
- Founded
- 2004
- FDD year
- 2026
- States available
- 21
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $164K – $225K
- Middle of category vs category
- Liquid capital req'd
- $9K – $20K
- Top 40% of category vs category
- Franchise fee
- $50K – $75K
- Middle of category vs category
- Royalty
- 10.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 56.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 56.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
DUCTZ did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one DUCTZ unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
32%
Within the 30–60% "attractive franchise" band
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: 2026 FDD
Financial Performance
Audited financial statements are the consolidated statements of affiliate/guarantor BFG Holdco, Inc. (formerly HRI Holdings, Inc.), not the franchisor DUCTZ International, LLC. Dollars in thousands; FYE December 31. Net Revenue 2025/2024/2023 = $30,117K/$29,538K/$31,072K. 2023 statements were audited by other (predecessor) auditors; BDO audited 2025 and 2024.
- Item 19 type
- gross sales
- Sample size
- 63
- vs category median 32
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 192 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 56.0% — above the Cleaning & Maintenance average of 9.7%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System contracting at -7.4% 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 averages
How Ductz Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 63
- Opened
- 6
- Last reporting year
- Closed
- 7
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -7.4%
- Net unit change over 3 years
- 3-yr CAGR
- -7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- N/A
- limited sample (8 loans) — rate not shown below 10
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
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
DUCTZ presents elevated risk due to declining unit count, lack of profitability transparency, and questionable corporate financial health despite moderate revenue figures.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in text (BFG Holdco audited financials)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 56.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 30 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 16 |
| Mandatory arbitration | Yes |
| Arbitration location | Ann Arbor, Michigan |
| Jury trial waiver | No |
| Governing law | MI |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 30 hrs
- Training location
- Ann Arbor, Michigan (BFG Training Center) and virtual/online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- 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?
DUCTZ 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 Item 19 in the DUCTZ 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 DUCTZ FDD and qualifies whose outlets they describe.
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 63 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 A-grade franchise with a verdict score of 70 out of 100 (higher is better), 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?
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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.