Midtown Chimney Sweeps Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Midtown Chimney Sweeps is a home services franchise offering chimney and dryer-vent cleaning, inspection, and repair. Franchisees run route-based operations, scheduling jobs and managing technicians within a territory.
FranchiseVerdict summary · 2026
A Midtown Chimney Sweeps franchise requires a total initial investment of $73K – $146K, including a $49K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $162K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $73K – $146K
- 17th pct Home Services
- Avg gross sales
- $162K
- 2nd pct Home Services
- Royalty
- 7.0%
- 34th pct Home Services
- Units
- 39
- 38th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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 $73K – $146K including a $49K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $162K/year.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Midtown Chimney Sweeps Franchising, LLC
- Parent company
- SchrammSon Enterprises, LLC
- Predecessor
- Byron Schramm
- Prior franchisor entity
- CEO title
- Manager, President, and Director of Training
- Byron D. Schramm
- Incorporated in
- CO
- HQ
- 2805 Wilderness Place, Suite 900, Boulder, CO 80301
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $703K
- vs $683K prior year
Overview
About
- CEO
- Byron D. Schramm
- Headquarters
- CO
- Founded
- 2014
- FDD year
- 2025
- States available
- 10
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $1K | $8K |
| Equipment, build-out, other | $23K | $89K |
| Total initial investment | $73K | $146K |
Source: Midtown Chimney Sweeps 2025 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
- $73K – $146K
- Top 40% of category vs category
- Liquid capital req'd
- $1K – $8K
- Top 40% of category vs category
- Franchise fee
- $49K – $49K
- Top 40% of category vs category
- Royalty
- 7.0%
- formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $3 |
| Transfer fee | $4K |
| Renewal fee | $4K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 87% below the home services norm.
Source: FDD 2025 · Item 19
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
$15K
9.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.8 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Midtown Chimney Sweeps unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Midtown Chimney Sweeps units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$65K
on $324K purchase
Total debt
$259K
SBA $0.2M + senior + seller note
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: 2025 FDD
Financial Performance
- Avg gross sales
- $162K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 36 territories
- vs category median 32
- Range (low → high)
- $11K→$1.4M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $162K/year in gross sales. Revenue-to-investment ratio: 1.5x.
Fee burden
Total ongoing fee load of 10.0% (near the Home Services average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 14.7% CAGR over 3 years across 39 units — operators are staying and new ones are joining.
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 Home Services averages
How Midtown Chimney Sweeps Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 39
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +14.7%
- Net unit change over 3 years
- 3-yr CAGR
- +14.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- 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 12 · 10 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.
10
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $275K
- Median loan
- $138K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (2 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
- 1
- 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
Modest growth, hidden profitability metrics, and past litigation create meaningful uncertainty around franchisee sustainability and franchisor support quality.
Litigation (Item 3)
Three cases filed in 2019 by franchisee James Laut/Laut Enterprises (arbitration and two Denver County District Court actions) for breach of franchise agreement, improper notices, and injunctive relief. All three settled April 24, 2020; franchisee paid $1,321.20 and returned materials.
Largest disclosed settlement: $1,321
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORNo Item 19 (net income) disclosure prevents ROI validation; average revenue of $162k against $73-146k investment suggests tight margins
- 02HIGHLitigation history (3 legal actions settled April 2020) involving breach of contract and mark counterfeiting indicates past franchisor-franchisee disputes and enforcement challenges
- 03MINORSlow unit growth (8.3% YoY on 39 units = ~3 net new franchises annually) suggests market saturation, recruitment challenges, or franchisee dissatisfaction
- 04MINOR7% royalty on gross revenues with $250/month minimum creates cash flow pressure on seasonal/weather-dependent chimney sweep business
- 05MINORHigh franchise fee ($49,000) represents 67-30% of initial investment with unclear break-even timeline
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 110,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Colorado |
| Jury trial waiver | Yes |
| Governing law | CO |
| Litigation count | 3 |
View Item 3 litigation summary
Three cases filed in 2019 by franchisee James Laut/Laut Enterprises (arbitration and two Denver County District Court actions) for breach of franchise agreement, improper notices, and injunctive relief. All three settled April 24, 2020; franchisee paid $1,321.20 and returned materials.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 34 hrs
- Training location
- Littleton, CO (Introductory); Boulder, CO (Advanced)
- Ongoing training
- Required
- Time to open
- 0 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval (home-based recommended)
- Franchisor financing
- Offered
- Item 10
- POS system
- Quickbooks Online and Vonigo
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Quickbooks Online and Vonigo
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Midtown Chimney Sweeps · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Midtown Chimney Sweeps franchise?
The total investment to open a Midtown Chimney Sweeps franchise ranges from $73K – $146K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Midtown Chimney Sweeps franchise owners earn?
According to Item 19 of the Midtown Chimney Sweeps FDD, the average gross sales per unit is $162K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Midtown Chimney Sweeps 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 Midtown Chimney Sweeps FDD and qualifies whose outlets they describe.
What is Midtown Chimney Sweeps's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Midtown Chimney Sweeps (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 Midtown Chimney Sweeps franchise locations are there?
As of their most recent FDD filing, Midtown Chimney Sweeps has 39 total units in the United States, including 39 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Midtown Chimney Sweeps a good franchise to buy?
FranchiseVerdict rates Midtown Chimney Sweeps as a B-grade franchise with a verdict score of 56 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
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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.