OctoClean Franchise Cost, Revenue & Review 2026
- Investment
- $15K – $124K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $15K – $124K
- 4th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Partial period
- Royalty
- 5.0%
- 8th 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 median · 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.
- RETURNSItem 19 reports monthly gross revenue per unit rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (9 opened, 8 closed) (Item 20).
- 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.
- 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
Same owner · FDD Item 1
1 other brand on this site name None identified as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 59% 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%
- 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% |
| 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
No Item 19 revenue figure for OctoClean is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one OctoClean unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
Covers a partial period, not a full year
- 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
Compared against 191 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% (near the Cleaning & Maintenance median).
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 medians
How OctoClean Compares
Category median of published Cleaning & Maintenance brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 8
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 32
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
55 current owners across 2 states; 40 former (terminated, transferred or not renewed) listed separately.
- CA 50
- AZ 5
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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.
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)
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.
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 | No territory protection |
| 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
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?
Item 19 of the OctoClean FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns OctoClean?
OctoClean is franchised by OctoClean Franchising Systems, Inc.. The FDD names no parent company. The ultimate parent named in the FDD is None identified. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.