OctoClean Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
OctoClean is a commercial janitorial franchise cleaning medical, educational, and office facilities. Franchisees build and manage client accounts and cleaning crews, overseeing scheduling, quality, and billing.
FranchiseVerdict summary · 2026
A OctoClean franchise requires a total initial investment of $15K – $124K, including a $14K – $31K franchise fee and an ongoing 5.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $15K – $124K
- 3rd pct Cleaning & Ma…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 5th pct Cleaning & Ma…
- Units
- 55
- 46th 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 $15K – $124K including a $14K franchise fee, 5.0% ongoing royalty.
- RETURNSFY ending Dec 31, 2024 audited. Total revenue $5,678,684 comprises franchise fee revenues subtotal ('Total other revenue') $2,048,219, agency revenue $3,463,425, and net supply revenue $167,040 (gross janitorial supply sales $741,593 less $574,553 cost of sales). Auditor located in Pawtucket, RI; report dated April 7, 2025.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- FLAG4 units terminated last reporting year (7.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- OctoClean Franchising Systems, Inc.
- Parent company
- None
- Ultimate parent
- None identified
- CEO title
- Founder and CEO
- Charles W. Stowe
- CEO experience
- 2000 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1695 Spruce Street, Suite 100, Riverside, CA 92507
- Auditor
- R P F Accounting Services
- Audited financials
- Franchisor revenue
- $5.7M
- vs $4.7M prior year
Overview
About
- CEO
- Charles W. Stowe
- Headquarters
- CA
- Founded
- 2000
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 78% below the typical cleaning & maintenance franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $14K | $31K | |
| Manuals, starter supply of forms | — | — | |
| Real Estate | $0 | $5K | |
| Business License & Permits | $100 | $1K | |
| Starter Kit of equipment, products, materials, supplies | $2K | $2K | |
| Optional extra equipment supplies | $0 | $40K | |
| Misc. Pre-opening costs | $0 | $2K | |
| Employee wages | $0 | $1K | |
| Insurance premiums | $60 | $700 | |
| Worker's comp premiums | $20 | $450 | |
| Gasoline | $60 | $500 | |
| Additional supplies | $20 | $8K | |
| Personal non-business expenses | $0 | $16K | |
| Note payments | $0 | $2K | |
| Training Expenses | $0 | $5K | |
| Additional Funds | $0 | $10K | |
| Total initial investment | $16K | $125K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $15K – $124K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $10K
- Top 40% of category vs category
- Franchise fee
- $14K – $31K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1 |
| Transfer fee | $2K |
| Renewal fee | $1K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
OctoClean 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 OctoClean unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
120%
Above the 30–60% band. Verify revenue is per-unit average
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
FY ending Dec 31, 2024 audited. Total revenue $5,678,684 comprises franchise fee revenues subtotal ('Total other revenue') $2,048,219, agency revenue $3,463,425, and net supply revenue $167,040 (gross janitorial supply sales $741,593 less $574,553 cost of sales). Auditor located in Pawtucket, RI; report dated April 7, 2025.
- Item 19 type
- monthly gross revenue per unit
- Sample size
- 55
- vs category median 32
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
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 8.0% — below the Cleaning & Maintenance average of 9.7%.
Disclosure
Item 19 reports monthly gross revenue per unit rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -16.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 OctoClean Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 55
- Opened
- 9
- Last reporting year
- Closed
- 4
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +1.9%
- Net unit change over 3 years
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 4
- Terminated (3yr)
- 4
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
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.
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
OctoClean presents high risk due to regulatory violations, active litigation, minimal unit growth, missing financial disclosures, and unprotected territories—suggesting a weakening system with poor franchisee outcomes.
Litigation (Item 3)
Case 1: Aguirre et al. AAA arbitration (filed 2018); OctoClean sued former franchisees for breach/trade secret misappropriation; ultimately awarded damages against co-respondents. Case 2: California DFPI Commissioner enforcement — OctoClean entered franchise agreements while unregistered; resolved via consent order September 2023 with $35,000 penalty and offers to rescind affected agreements.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · R P F Accounting Services
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: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 73 / 100 verdict
- 01HIGHActive litigation involving breach of contract and trade secret misappropriation indicates operational/legal disputes with franchisees
- 02MINORCalifornia regulatory consent order for registration and disclosure violations suggests franchisor failed to meet legal obligations to franchisees
- 03MINORStagnant unit growth (1.9% YoY on only 55 units) indicates market rejection or franchisee struggles
- 04MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of franchisee profitability
- 05MINORUnprotected territory creates direct competition risk from other OctoClean franchisees
- 06MINORHigh franchise fee ($13,500) relative to initial investment range suggests low barrier to entry for franchisor but poor ROI potential
- 07MINORRoyalty structure ($100-$250 monthly minimum) may exceed profits for struggling locations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 50 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| 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 | Riverside County, CA (mediation required first) |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 2 |
View Item 3 litigation summary
Case 1: Aguirre et al. AAA arbitration (filed 2018); OctoClean sued former franchisees for breach/trade secret misappropriation; ultimately awarded damages against co-respondents. Case 2: California DFPI Commissioner enforcement — OctoClean entered franchise agreements while unregistered; resolved via consent order September 2023 with $35,000 penalty and offers to rescind affected agreements.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 27 hrs
- Training location
- Riverside, CA (Franchisor Headquarters) and franchisee location
- Ongoing training
- Required
- Field support
- 28 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
95 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
OctoClean · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a OctoClean franchise?
The total investment to open a OctoClean franchise ranges from $15K – $124K, with an initial franchise fee of $14K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do OctoClean franchise owners earn?
OctoClean 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 OctoClean 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 OctoClean FDD and qualifies whose outlets they describe.
What is OctoClean's franchise failure rate?
SBA 7(a) loan charge-off data is not available for OctoClean (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 OctoClean franchise locations are there?
As of their most recent FDD filing, OctoClean has 55 total units in the United States, including 55 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is OctoClean a good franchise to buy?
FranchiseVerdict rates OctoClean as a A-grade franchise with a verdict score of 73 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?
If you represent OctoClean, you can request corrections or provide updated information.
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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.