Purosystems Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Purosystems franchise requires a total initial investment of $109K – $153K, including a $25K – $59K franchise fee. Per the 2026 FDD, average unit revenue was $942K[2]. SBA 7(a) loans show a 15.4% charge-off rate across 176 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $109K – $153K
- 37th pct Home Services
- Avg gross sales
- $942K
- 33rd pct Home Services
- Royalty
- N/A
- Units
- 433
- 81st pct Home Services
- SBA charge-off
- 15.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · 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
- Total investment $109K – $153K including a $25K franchise fee.
- Average unit revenue of $942K/year (median $500K).
- Verdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 15.4% across 176 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PuroSystems, LLC
- Parent company
- Puro Enterprise Holdings, LLC
- Predecessor
- Purofirst, Inc.
- Prior franchisor entity
- CEO title
- CEO, Chairman & Director
- Mark Davis
- Incorporated in
- Florida
- HQ
- 6001 Hiatus Road, Suite 13, Tamarac, Florida 33321
- Auditor
- UHY LLP
- Audited financials
- Franchisor revenue
- $31.8M
- vs $31.5M prior year
Overview
About
PuroSystems franchises PUROCLEAN businesses that provide drying, cleaning, painting, repair, mitigation, remediation, construction and replacement services for fire, water, mold and other property casualty damage, plus purification and odor removal services, to insurance companies, businesses and residential clients.
- CEO
- Mark Davis
- Headquarters
- Florida
- Founded
- 1990
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 42% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $20K | $35K |
| Equipment, build-out, other | $64K | $93K |
| Total initial investment | $109K | $153K |
Source: Purosystems 2026 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
- $109K – $153K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $35K
- Middle of category vs category
- Franchise fee
- $25K – $59K
- Top 40% of category vs category
- Royalty
- Mitigation Services: tiered from 10% (first $0-$249,999.9…
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $5K |
What do units actually make?
Average unit sales run 22% below the home services norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$104K
11.0% margin
Unlevered ROIC
66%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $942K
- Per unit, per year
- Median gross sales
- $500K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- tiered average/median gross sales by percentile segment (All Franchisees; with/without BDR; Conversion Contracts)
- Sample size
- 393 units
- vs category median 32 · large
- Range (low → high)
- $0→$20.3M
- Cohort dispersion (min → max)
- Quartile band
- $101K→$2.6M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 355 Home Services brands
Revenue is 7.2x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $942K/year in gross sales. Median is $500K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 7.2x.
Operator retention
System expanding at 7.4% CAGR over 3 years across 433 units — operators are staying and new ones are joining.
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 Home Services averages
How Purosystems Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 433
- Opened
- 41
- Last reporting year
- Closed
- 15
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +7.4%
- Net unit change over 3 years
- 3-yr CAGR
- +7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 67
- Closed (3yr)
- 9
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 176
- Loan volume
- $45.8M
- Median loan
- $37K
- 50th percentile
- Charge-off rate
- 15.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 84.6%
- 5-yr charge-off
- 8.7%
- Loans approved 2021+
- Active lenders
- 60
- Defaults
- 10
- Typical loan rate
- 6.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 2361
- Jobs supported
- 41
- 7.0 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Purosystems franchisees
Showing 3 of 60 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Pending: Born Active, LLC v. PuroSystems (franchisee suit alleging breach of contract, fraud, CA franchise law violations, filed Feb 2026, unresolved). Prior: PuroSystems v. DePaoli (AAA arbitration, unpaid royalties, settled 2022 for $32,702.50). Other Item 3 actions during last fiscal year: PuroSystems v. Katz (AAA, unpaid royalties $62,981.56, settled Oct 2025) and PuroSystems v. Schatz/SB Enterprises (AAA, unpaid royalties $608,935.38, counterclaim for wrongful termination, in discovery).
Largest disclosed settlement: $32,702
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · UHY LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Broward County, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 4 |
View Item 3 litigation summary
Pending: Born Active, LLC v. PuroSystems (franchisee suit alleging breach of contract, fraud, CA franchise law violations, filed Feb 2026, unresolved). Prior: PuroSystems v. DePaoli (AAA arbitration, unpaid royalties, settled 2022 for $32,702.50). Other Item 3 actions during last fiscal year: PuroSystems v. Katz (AAA, unpaid royalties $62,981.56, settled Oct 2025) and PuroSystems v. Schatz/SB Enterprises (AAA, unpaid royalties $608,935.38, counterclaim for wrongful termination, in discovery).
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 39 hrs
- Training location
- PuroClean Academy, Tamarac, Florida
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- DASH (Next Gear Solutions restoration/job management software)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DASH (Next Gear Solutions restoration/job management software)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Purosystems franchise?
The total investment to open a Purosystems franchise ranges from $109K – $153K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Purosystems franchise owners earn?
According to Item 19 of the Purosystems FDD, the average gross sales per unit is $942K. The median is $500K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Purosystems's franchise failure rate?
Based on SBA 7(a) loan data, Purosystems has a charge-off rate of 15.4% across 176 loans, meaning 15.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Purosystems franchise locations are there?
As of their most recent FDD filing, Purosystems has 433 total units in the United States, including 433 franchised units and 0 company-owned units. 41 new units were opened in the latest reporting year.
Is Purosystems a good franchise to buy?
FranchiseVerdict rates Purosystems as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), 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.