OctoCleanFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A OctoClean franchise requires a total initial investment of $15K – $124K, including a $14K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $15K – $124K
- 2nd pct Cleaning & Ma…
- Avg gross sales
- N/A
- 56th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 55
- 46th pct Cleaning & Ma…
- SBA default
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Franchised units fell from 66 to 55 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $15K – $124K including a $14K franchise fee.
- Item 19 discloses "Actual monthly revenues" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 32/100.
- 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.
- Ultimate parent
- None identified
- CEO title
- Chief Executive Officer and Chairman of the Board
- 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
- $4.7M
- vs $5.7M prior year
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
- Headquarters
- CA
- Founded
- 2000
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 16 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
- Better than avg vs category
- Liquid capital req'd
- $0 – $10K
- Better than avg vs category
- Franchise fee
- $14K – $31K
- Better than avg vs category
- 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
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1 |
| Transfer fee | $2K |
| Renewal fee | $1K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Actual monthly revenues" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Cleaning & Maintenance averages
How OctoClean Compares
Unit growth
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
3-year detail · Item 20
- Transfers (3yr)
- 1
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
OctoClean Franchising Systems, Inc. v. Aguirre et al., AAA Case No. 01-18-0001-4807, initiated April 11, 2018. OctoClean sued former franchisees Agustin Aguirre, Carmen Hernandez, and Ivonne Baez for breach of contract, breach of implied covenant of good faith and fair dealing, and misappropriation of trade secrets. Claims included customer diversion to competing companies 24/7 Construction Cleaning Services, Inc. and Aguirre's Janitorial, Inc. Aguirre and Hernandez filed bankruptcy February 13, 2019; Baez filed March 4, 2019, staying litigation. On March 20, 2019, supplemental pleading filed against co-respondents for intentional interference with contractual relations, intentional interference with prospective business, and unjust enrichment. Defendants asserted counterclaims against franchisor for breach of contract, breach of implied covenant, open book account, account stated, constructive trust, Franchise Relations Act violation, and unfair competition law violation.
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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 32 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| 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 |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
OctoClean Franchising Systems, Inc. v. Aguirre et al., AAA Case No. 01-18-0001-4807, initiated April 11, 2018. OctoClean sued former franchisees Agustin Aguirre, Carmen Hernandez, and Ivonne Baez for breach of contract, breach of implied covenant of good faith and fair dealing, and misappropriation of trade secrets. Claims included customer diversion to competing companies 24/7 Construction Cleaning Services, Inc. and Aguirre's Janitorial, Inc. Aguirre and Hernandez filed bankruptcy February 13, 2019; Baez filed March 4, 2019, staying litigation. On March 20, 2019, supplemental pleading filed against co-respondents for intentional interference with contractual relations, intentional interference with prospective business, and unjust enrichment. Defendants asserted counterclaims against franchisor for breach of contract, breach of implied covenant, open book account, account stated, constructive trust, Franchise Relations Act violation, and unfair competition law violation.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 40 hrs
- Training location
- Riverside, CA
- Ongoing training
- Required
- Field support
- 28 hrs/yr
- On-site visits per year
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 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 66 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 risk score of 32 out of 100, 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.