IRIS Environmental LaboratoriesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A IRIS Environmental Laboratories franchise requires a total initial investment of $31K – $63K, including a $15K franchise fee and an ongoing 5.0% royalty[2]. Per the 2023 FDD, average unit revenue was $72K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $31K – $63K
- 12th pct Real Estate
- Avg gross sales
- $72K
- 1st pct Real Estate
- Royalty
- 5.0%
- 11th pct Real Estate
- Units
- 10
- 12th pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate 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
Franchised units fell from 5 to 2 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $31K – $63K including a $15K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $72K/year (median $84K).
- Verdict B (Above Average) with a risk score of 60/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- IRIS Alliance, LLC
- Incorporated in
- NJ
- HQ
- 2333 Route 22 West, Union, New Jersey 07083
- Auditor
- RW Group
- Audited financials
- Franchisor revenue
- $54K
- vs $58K prior year
Overview
About
IRIS Environmental Laboratories franchisees operate testing and environmental compliance services, likely conducting water, soil, air, or industrial sampling/analysis for commercial, municipal, or regulatory clients. Day-to-day activities include client acquisition, field sampling, laboratory analysis (or coordination with third-party labs), report generation, and regulatory compliance documentation.
- CEO
- Rodrigo Eustaquio
- Headquarters
- NJ
- Founded
- 2018
- FDD year
- 2023
- States available
- 4
FDD Item 7 · 2023 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $15K | $15K | |
| Technologynot refundable | $2K | $4K | |
| Equipment, Furniture and Fixtures | $2K | $4K | |
| Real Estate | $0 | $2K | |
| Utility Deposit | $0 | $250 | |
| Sample Testing Cassettesnot refundable | $270 | $270 | |
| Inventory of Products and Suppliesnot refundable | $590 | $930 | |
| Vehiclenot refundable | $0 | $3K | |
| Vehicle Graphicsnot refundable | $800 | $4K | |
| Staffingnot refundable | $0 | $11K | |
| Apparelnot refundable | $390 | $660 | |
| Insurancenot refundable | $1K | $3K | |
| Travel, Lodging and Meals for Initial Training Programnot refundable | $1K | $2K | |
| Asbestos and Mold Required Training Programsnot refundable | $0 | $2K | |
| Business Licenses, Permits, Certifications and other Professional Feesnot refundable | $300 | $700 | |
| Grand Opening Marketingnot refundable | $5K | $5K | |
| Operating Expenses and Additional Fundsnot refundable | $3K | $7K | |
| Total initial investment | $31K | $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.
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
$12K
17.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $31K – $63K
- Better than avg vs category
- Liquid capital req'd
- $3K – $7K
- Better than avg vs category
- Franchise fee
- $15K – $15K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $72K
- Per unit, per year
- Median gross sales
- $84K
- Item 19 type
- gross_sales
- Sample size
- 11 units
- vs category median 41 · small
- Range (low → high)
- $14K→$111K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 0 / 5 · above
Compared against 121 Real Estate brands
vs Real Estate averages
How IRIS Environmental Laboratories Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 3
- Last reporting year
- Closed
- 3
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 30.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 62.5%
- Units that stayed open
- Termination rate
- 40.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, opaque system with undisclosed profitability metrics, escalating royalties, and uncertain growth creates meaningful risk despite protected territory and reasonable franchise fee.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RW Group
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 60 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $71,703 average revenue
- 02MINOROnly 10 units system-wide with unknown growth trajectory — insufficient scale and expansion data raises sustainability concerns
- 03MINOREscalating royalty structure (5%-7%) combined with $250-$750 monthly minimums creates cash flow pressure for slower-growth franchisees
- 04MINORLow average revenue ($71,703) relative to $31,300-$62,510 total investment suggests 44-87% first-year payback period assumption with no Item 19 support
- 05HIGHGoing Concern status 'False' suggests potential financial instability or recent restructuring of franchisor operations
- 06MED5-year term with protected territory but minimal unit count indicates limited network support and peer-learning resources
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 | Population-based (zip codes) |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- privately labeled software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: privately labeled software
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
IRIS Environmental Laboratories · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a IRIS Environmental Laboratories franchise?
The total investment to open a IRIS Environmental Laboratories franchise ranges from $31K – $63K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do IRIS Environmental Laboratories franchise owners earn?
According to Item 19 of the IRIS Environmental Laboratories FDD, the average gross sales per unit is $72K. The median is $84K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is IRIS Environmental Laboratories's franchise failure rate?
SBA 7(a) loan charge-off data is not available for IRIS Environmental Laboratories (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 IRIS Environmental Laboratories franchise locations are there?
As of their most recent FDD filing, IRIS Environmental Laboratories has 10 total units in the United States, including 5 franchised units and 5 company-owned units. 3 new units were opened in the latest reporting year.
Is IRIS Environmental Laboratories a good franchise to buy?
FranchiseVerdict rates IRIS Environmental Laboratories as a B-grade franchise with a risk score of 60 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.