Renue® Franchise Cost, Revenue & Review 2026
- Investment
- $182K – $226K
- Disclosed sales
- $658K
- gross sales, not profit
- SBA charge-off
- Limited · 12 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Renue Systems is a hospitality services franchise providing deep cleaning and disinfecting for hotels and commercial facilities. Franchisees run the operations, managing crews, scheduling, and recurring hospitality accounts.
FranchiseVerdict summary · 2026
A RENUE® franchise requires a total initial investment of $182K – $226K, including a $75K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $658K[2]. 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: low - issued within the last 12 months
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $182K – $226K
- 6th pct Lodging
- Avg gross sales
- $658K
- Outlet subset0th pct Lodging
- Royalty
- 10.0%
- 70th pct Lodging
- Units
- 26
- 31st pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging 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 $182K – $226K including a $75K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $658K/year (median $400K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Renue Systems Development Corp., Inc.
- Predecessor
- National Appeal Development Corp., Inc.
- Prior franchisor entity
- CEO title
- President, Chief Executive Officer, Treasurer and Secretary
- David J. Grossman
- CEO experience
- 14 yrs
- Years in role or industry
- Incorporated in
- Illinois
- HQ
- 1147 North Main Street, Lombard, Illinois 60148
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $2.2M
- vs $2.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- related to us by common ownership
- of ours and related to us by common ownership
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- David J. Grossman
- Headquarters
- IL
- Founded
- 2000
- FDD year
- 2026
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 98% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Initial Equipment, Chemicals, Supplies and Training Package Feenot refundable | $55K | $55K | |
| Shipping Costs for Initial Equipment, Chemicals and Supplies | $0 | $4K | |
| Storage Space - 3 Months | $2K | $5K | |
| Wages, Travel and Living Expenses During Training | $2K | $5K | |
| Vehicle | $30K | $50K | |
| Computer Equipment, Software and Accessories | $500 | $2K | |
| Insurance - 3 Months | $3K | $5K | |
| Accounting and Legal Professional Fees | $1K | $3K | |
| Business Licenses | $100 | $200 | |
| Additional Funds for First 3 Months | $15K | $25K | |
| Total initial investment | $182K | $226K |
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
- $182K – $226K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 10.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $2K |
| Training fee | $500 |
| Transfer fee | $37K |
| Renewal fee | $7K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 53% below the lodging norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for RENUE® until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$224K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one RENUE® 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $658K
- Per unit, per year
- Median gross sales
- $400K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical financial information
- Sample size
- 20 outlets
- vs category median 98 · small
- Range (low → high)
- $145K→$1.9MCited, not corroborated — printed on page 31 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 0 / 10 · above
Compared against 175 Lodging brands
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 $658K/year in gross sales. Median is $400K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 3.2x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 11.0% — above the Lodging median of 8.5%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 Lodging medians
How Renue® Compares
Category median of published Lodging 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
Where the owners are · Item 20 owner list
19 current owners across 14 states.
- CA 3
- TX 3
- HI 2
- AZ 1
- FL 1
- GA 1
- IN 1
- LA 1
- MA 1
- MD 1
- MI 1
- NC 1
- +2 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. 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.
- Total loans
- 12
- Loan volume
- $2.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Limited · 12 loans
- Limited SBA coverage: 12 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 12 loans
- 5-yr charge-off
- Limited · 12 loans
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 2
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 15.4%
- n=1,491 loans
- Jobs supported
- 42
- 3.3 per loan
- Lender concentration
- 67%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in janitorial services, franchised businesses charge off at 15.4% vs 22.8% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Renue® franchisees
Showing 3 of 5 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Renue® from SBA 7(a) FOIA data.
- Principal loss rate
- 13.8%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 8.00%
- Avg chargeoff amount
- $88K
- Lender concentration
- 66.7%
- Job velocity
- 3.3 per $100K
- NAICS benchmark
- 16.8%
- NAICS 561720
- Jobs supported
- 42
Top SBA lendersTop lender holds 67% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 6 | $1.1M | 33.3% |
| 2 | KeyBank National Association | 2 | $72K | 0.0% |
| 3 | TD Bank, National Association | 1 | $100K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| HIHawaii | 2 | 0 | 0.0% |
| INIndiana | 2 | 0 | 0.0% |
| AZArizona | 1 | 1 | 100.0% |
| NCNorth Carolina | 1 | 0 | -- |
| OHOhio | 1 | 0 | 0.0% |
| PAPennsylvania | 1 | 1 | 100.0% |
| UTUtah | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Small 26-unit service franchise with one prior regulatory matter, a 2011 Washington DFI consent order (no fines, only cost reimbursement) and no pending litigation. Financials are healthy: net worth $1.54M, revenue $2.16M, positive net income $346K, audited with Item 19.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Washington Consent Order S-11-0789-11-CO01 issued by State of Washington Department of Financial Institutions, Securities Division on September 30, 2011. Required compliance with registration and delivery of Franchise Disclosure Document sections. Reimbursement of investigative costs required; no fines or assessments. Related to franchise offer and sale by prior owner and subsequent offer before Washington franchise registration obtained.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor operating revenue for FY2025: Royalties $1,898,644; Initial franchise fees $182,874; Equipment package fees $67,705; Other operating revenue $12,550; Total $2,161,773. FY2024 total operating revenue $2,048,063.
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 71 / 100 verdict
- 01MINOROne prior regulatory action: 2011 WA DFI consent order, no fines
- 02MINORSmall system of 26 units
- 03MINOROtherwise clean: positive equity, positive net income $346,351, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Geographic Area |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Lombard, Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 1 |
View Item 3 litigation summary
Washington Consent Order S-11-0789-11-CO01 issued by State of Washington Department of Financial Institutions, Securities Division on September 30, 2011. Required compliance with registration and delivery of Franchise Disclosure Document sections. Reimbursement of investigative costs required; no fines or assessments. Related to franchise offer and sale by prior owner and subsequent offer before Washington franchise registration obtained.
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
21 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 RENUE® franchise?
The total investment to open a RENUE® franchise ranges from $182K – $226K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RENUE® franchise owners earn?
According to Item 19 of the RENUE® FDD, the average gross sales per unit is $658K. The median is $400K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns RENUE®?
RENUE® is franchised by Renue Systems Development Corp., Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the RENUE® 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 RENUE® FDD and qualifies whose outlets they describe.
What is RENUE®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for RENUE® (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 RENUE® franchise locations are there?
As of their most recent FDD filing, RENUE® has 26 total units in the United States, including 25 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is RENUE® a good franchise to buy?
FranchiseVerdict rates RENUE® as a A-grade franchise with a verdict score of 71 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
Are you the franchisor?
If you represent RENUE®, you can request corrections or provide updated information.
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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.