FranchiseVerdict
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FV-01813·CAUTIONExcellent81

OctoClean

Cleaning - Commercial & JanitorialFranchising since 2000Website
Investment
$15K – $124K
3rd pct Commercial & …
Avg revenue
65th pct Commercial & …
Royalty
Units
55
51st pct Commercial & …
SBA default

Bottom line

  • Total investment $15K – $124K including a $14K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 69/100.
  • System contracting at -16.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
OctoClean Franchising Systems, Inc.
Incorporated in
California
HQ
1695 Spruce Street, Suite 100, Riverside, CA 92507
Auditor
R P F Accounting Services
Audited financials
Franchisor revenue
$4.7M
vs $5.7M 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 OctoClean unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
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: $15K–$124K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

110%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$75K
Payback
11 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.

Overview

About

OctoClean franchisees operate residential and/or commercial cleaning services, likely performing routine house/office cleaning, deep cleaning, and specialty services. Day-to-day activities involve scheduling clients, managing cleaning crews or performing services solo, handling customer service, and maintaining equipment and supplies.

CEO
Charles W. Stowe
Founded
2000
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$15K – $124K
All-in to open one unit
Liquid capital
$0 – $10K
Cash you must have on hand
Franchise fee
$14K
Royalty
Greater of 5% of Gross Revenue or $100/$250 monthly
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
55
Opened
9
Last reporting year
Closed
8
Turnover rate
14.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+1.9%
Net unit change last year
3-yr CAGR
-16.7%
Compounded over last 3 years
2023
55+1
Franchised units
2024
54
Franchised units
2025
66
Franchised units

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

Item 20 · 3 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 · 3 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.

No SBA loan data available for this brand.

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

Risk & Legal

69
Risk · 0-100
CAUTION69 / 100

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.

Score breakdown · what drove the 69 / 100 rating

  1. 01HIGHActive litigation involving breach of contract and trade secret misappropriation indicates operational/legal disputes with franchisees
  2. 02MINORCalifornia regulatory consent order for registration and disclosure violations suggests franchisor failed to meet legal obligations to franchisees
  3. 03MINORStagnant unit growth (1.9% YoY on only 55 units) indicates market rejection or franchisee struggles
  4. 04MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of franchisee profitability
  5. 05MINORUnprotected territory creates direct competition risk from other OctoClean franchisees
  6. 06MINORHigh franchise fee ($13,500) relative to initial investment range suggests low barrier to entry for franchisor but poor ROI potential
  7. 07MINORRoyalty structure ($100-$250 monthly minimum) may exceed profits for struggling locations

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius
Protected territory
No
Initial term
10 years
Renewal term
5 years
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
20 hrs
On-the-job training
40 hrs

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

5 numbers

Locked
(951) 241-••••
Franchisees that left the System between January
CA
(623) 388-••••
Franchisees as of December
AZ
(909) 260-••••
Franchisees that left the System between January
AZ

One-time purchase · CSV download · Validation questions included

FDD download

OctoClean · FDD (2025) PDF

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