OpenWorksFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A OpenWorks franchise requires a total initial investment of $72K – $134K, including a $72K franchise fee and an ongoing 15.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $72K – $134K
- 6th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- 15.0%
- 30th pct Automotive
- Units
- 414
- 35th pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive 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 1988. Systems this mature have refined operations and brand recognition.
The system contracted 33% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $72K – $134K including a $72K franchise fee, 15.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 68/100.
- System contracting at -36.7% 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
- O.P.E.N. America, Inc.
- Parent company
- none
- Incorporated in
- AZ
- HQ
- 2355 E. Camelback Road, Suite 600, Phoenix, Arizona 85016
- Auditor
- Eide Bailly LLP
- Audited financials
- Franchisor revenue
- $94.3M
- vs $92.0M prior year
Overview
About
OpenWorks franchisees operate cleaning and facility services businesses, likely providing commercial or residential janitorial services. Day-to-day operations involve managing cleaning crews, scheduling service calls, handling customer relationships, and managing labor-intensive operations across unprotected territories.
- CEO
- Eric Roudi
- Headquarters
- AZ
- Founded
- 1987
- FDD year
- 2025
- States available
- 24
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $72K | $72K |
| Working capital (3–6 mo) | $0 | $35K |
| Equipment, build-out, other | $0 | $27K |
| Total initial investment | $72K | $134K |
Source: OpenWorks 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $72K – $134K
- Better than avg vs category
- Liquid capital req'd
- $0 – $35K
- Better than avg vs category
- Franchise fee
- $3K – $72K
- Near category avg vs category
- Royalty
- 15.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 15.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2 |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 20.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How OpenWorks Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 414
- Opened
- 56
- Last reporting year
- Closed
- 257
- Turnover rate
- 62.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -32.7%
- Net unit change last year
- 3-yr CAGR
- -36.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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
OpenWorks presents extreme risk: a rapidly collapsing franchise system (down 33% YoY) with pervasive litigation, unproven unit economics, and auditor-flagged going concern issues.
Audited financials (Item 21)
Yes · Eide Bailly LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 68 / 100 rating
- 01MEDUnit count declined 32.7% year-over-year (414 units), indicating systemic franchisee failure or abandonment
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and suggests poor unit economics
- 03MED15% royalty on gross revenue is exceptionally high and creates cash flow pressure, especially without disclosed profitability data
- 04HIGHMultiple litigation cases including breach of contract, labor law violations (minimum wage, overtime, meal periods), and fraud/misrepresentation claims signal operational and compliance problems
- 05HIGHGoing Concern status is FALSE, indicating auditor doubts about the franchisor's financial viability
- 06MINORUnprotected territory creates direct competition risk from other franchisees in the same area
- 07MINORHigh franchise fee ($72,000) combined with declining unit count suggests franchisees are not recouping investments
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 | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 0.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 9 |
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 20 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
OpenWorks · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a OpenWorks franchise?
The total investment to open a OpenWorks franchise ranges from $72K – $134K, with an initial franchise fee of $72K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do OpenWorks franchise owners earn?
OpenWorks 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 OpenWorks's franchise failure rate?
SBA 7(a) loan charge-off data is not available for OpenWorks (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 OpenWorks franchise locations are there?
As of their most recent FDD filing, OpenWorks has 414 total units in the United States. 56 new units were opened in the latest reporting year.
Is OpenWorks a good franchise to buy?
FranchiseVerdict rates OpenWorks as a C-grade franchise with a risk score of 68 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.
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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.