Vanguard Cleaning Systems
Bottom line
- Total investment $6K – $28K including a $5K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System contracting at -12.6% 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 Vanguard Cleaning Systems unit return on the cash you put in?
Unlevered ROIC · per unit
257%
Above typical band (30–60%)
Overview
About
Franchisees operate residential and commercial cleaning services, typically managing their own schedules and client base while paying 10% royalties to corporate. The low entry fee suggests a labor-intensive, owner-operator model where franchisees likely perform hands-on cleaning work themselves or manage small teams. Success depends heavily on local market saturation, client acquisition, and labor cost management.
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 · 3 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Vanguard Cleaning Systems presents high risk due to ongoing multi-state employee misclassification litigation, shrinking franchise network, lack of financial transparency, and unprotected territories—suggesting systemic operational and legal vulnerabilities.
Score breakdown · what drove the 71 / 100 rating
- 01MEDSignificant unit decline of 8.6% year-over-year (2,011 units) indicating system contraction and potential franchisee dissatisfaction
- 02MINORThree separate misclassification lawsuits across multiple states (Illinois, California, Massachusetts) with one settled for $559,450, suggesting systemic classification issues
- 03MEDNo average revenue or net income disclosure (missing Item 19) making it impossible to validate return on $6,280-$27,995 investment
- 04MINORUnprotected territory creates direct competition risk between franchisees and no exclusivity guarantee
- 05HIGHPending class action litigation in California (Mazariegos) and ongoing Illinois administrative appeal represent material ongoing legal exposure
- 06HIGHGoing Concern status is False, indicating potential financial viability concerns at corporate level
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
71 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Vanguard Cleaning Systems · FDD (2025) PDF