FranchiseVerdict
Miracle Method logo
FV-01645·STRONGExcellent95

Miracle Method

Cleaning - Commercial & JanitorialFranchising since 1996Website
Investment
$143K – $262K
71st pct Commercial & …
Avg revenue
$1.4M
51st pct Commercial & …
Royalty
5.5%
8th pct Commercial & …
Units
213
83rd pct Commercial & …
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $143K – $262K including a $50K franchise fee, 5.5% ongoing royalty.
  • Average unit revenue of $1.4M/year (median $1.1M).
  • Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Miracle Method, LLC
Parent company
Threshold Brands, LLC
Incorporated in
Texas
HQ
215 Sutton Lane, Colorado Springs, CO 80907
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$49.0M
vs $47.9M prior year

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 Miracle Method unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,355,173
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $143K–$262K
Working capital
$
FDD reports $20K–$40K

Unlevered ROIC · per unit

67%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$156K
EBITDA margin
11.5%
Total invested
$232K
Payback
18 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Miracle Method units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.2M

on $6.1M purchase

Total debt

$4.9M

SBA $3.0M + senior + seller note

Overview

About

Miracle Method franchisees operate surface restoration and refinishing services, primarily focusing on bathtub, tile, and countertop reglazing/repair. Daily operations involve customer acquisition, job scheduling, technician management, and on-site refinishing work using proprietary chemical processes.

CEO
Theodore Demarino
Founded
1989
FDD year
2026
States available
33

Item 7 · what it costs

The Vitals

Total investment
$143K – $262K
All-in to open one unit
Liquid capital
$20K – $40K
Cash you must have on hand
Franchise fee
$50K
Royalty
5.5%
Percentage of Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.5%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.4M
Per unit, per year
Median gross sales
$1.1M
Item 19 type
Gross Revenues
Sample size
64 units
vs category median 32
Range (low → high)
$159K$4.1M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank51th
vs Cleaning - Commercial & Janitorial peers
Investment cost rank71th
Lower investment ranks lower (better)
Royalty rate rank8th
Lower royalty = lower percentile (better)
Unit count rank83th
vs Cleaning - Commercial & Janitorial peers
Risk score rank9th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
213
Opened
19
Last reporting year
Closed
3
Turnover rate
1.4%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+4.9%
Net unit change last year
3-yr CAGR
+9.8%
Compounded over last 3 years
2024
213+10
Franchised units
2025
203
Franchised units
2026
194
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 10 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 10 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
12
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

41
Risk · 0-100
STRONG41 / 100

Miracle Method presents moderate-to-cautious risk due to unverified revenue claims, lack of profitability disclosure, slow growth, related-party litigation, and a royalty structure with unknown minimum thresholds.

Score breakdown · what drove the 41 / 100 rating

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to validate $1.36M average revenue claim or actual franchisee profitability
  2. 02MINORSlow unit growth of 4.9% YoY suggests market saturation or franchisee dissatisfaction in a mature 213-unit system
  3. 03HIGHParent company litigation (MaidPro) in August 2025 for franchise fee deferral violations indicates compliance risk within corporate structure
  4. 04MINORHigh royalty floor ('whichever is greater') creates unpredictable minimum payments that could exceed 5.5% for low-revenue locations
  5. 05MEDHigh initial investment ($142.5K–$261.8K) combined with undisclosed net income makes ROI validation impossible

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Territory
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Colorado

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
80 hrs
POS system
MM System
Operating tech stack

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.

Franchisee contacts

66 numbers

Locked
(918) 216-••••
MA
(401) 751-••••
MA
(865) 693-••••
MA

One-time purchase · CSV download · Validation questions included

FDD download

Miracle Method · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above