Bottom line
- Total investment $4K – $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.
- Rated CAUTION with a risk score of 72/100.
- 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
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 OpenWorks unit return on the cash you put in?
Unlevered ROIC · per unit
60%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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 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
OpenWorks presents extreme risk: a rapidly collapsing franchise system (down 33% YoY) with pervasive litigation, unproven unit economics, and auditor-flagged going concern issues.
Score breakdown · what drove the 72 / 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
Item 11
Training & Operations
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
OpenWorks · FDD (2025) PDF