ZerorezFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ZEROREZ franchise requires a total initial investment of $219K – $411K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $219K – $411K
- 72nd pct Cleaning & Ma…
- Avg gross sales
- $1.4M
- 43rd pct Cleaning & Ma…
- Royalty
- 6.0%
- 10th pct Cleaning & Ma…
- Units
- 82
- 59th pct Cleaning & Ma…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance 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
Each dollar invested generates 4.5x in gross revenue, well above the typical 1.5-2.5x range.
175% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $219K – $411K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $890K), with an estimated 175% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 37/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ZEROREZ FRANCHISING SYSTEMS, INC.
- Parent company
- Zerorez, Inc.
- Incorporated in
- DE
- HQ
- 772 East Utah Valley Drive, Suite 120, American Fork, Utah 84003
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $73.4M
- vs $81.5M prior year
Overview
About
ZEROREZ franchisees operate carpet and upholstery cleaning services using proprietary water-based cleaning technology. Day-to-day operations include scheduling customer appointments, managing cleaning crews, handling service delivery, customer billing, and local marketing to build residential and commercial client bases.
- CEO
- Shawn D. Moon
- Headquarters
- UT
- Founded
- 2001
- FDD year
- 2026
- States available
- 30
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $90K | $242K |
| Equipment, build-out, other | $99K | $139K |
| Total initial investment | $219K | $411K |
Source: ZEROREZ 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$171K
12.0% margin
Unlevered ROIC
36%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $219K – $411K
- Below avg, review vs category
- Liquid capital req'd
- $90K – $242K
- Below avg, review vs category
- Franchise fee
- $15K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.3%
- vs 9–13% typical
- Payback period
- 0.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2 |
| Transfer fee | $30K |
| Renewal fee | $10K |
| Total fee load | 9.3% of rev |
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $890K
- Avg p&l bottom line
- $551K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 175.0%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Average Revenue and Contribution Margin
- Sample size
- 43 units
- vs category median 31
- Range (low → high)
- $31K→$12.9M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 204 Cleaning & Maintenance brands
Revenue is 4.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Cleaning & Maintenance averages
How Zerorez Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 8
- Last reporting year
- Closed
- 5
- Turnover rate
- 6.1%
- Company-owned
- 22
- Corporate units in the system
- % franchised
- 73%
- vs corporate-owned
- Net growth (yr3)
- +5.3%
- Net unit change last year
- 3-yr CAGR
- +9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $6.5M
- Median loan
- $267K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Zerorez's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
ZEROREZ presents moderate-to-cautionary risk: slow unit growth, unverified income claims, regulatory history, and recent litigation with a regional partner create uncertainty around franchisee profitability and franchisor stability.
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 37 / 100 rating
- 01MINORSlow unit growth of 5.3% YoY suggests market saturation or recruitment challenges in a 82-unit system
- 02MEDNo Item 19 (Financial Performance Representations) disclosed—cannot independently verify the $550,688 average net income claim
- 03HIGHTwo litigation events including 2024 arbitration with regional developer and historical 2011 regulatory compliance failure indicate franchisor-franchisee relationship strain
- 04MINORHigh initial investment range ($218K–$411K) with 6% royalty against modest unit growth raises ROI sustainability concerns
- 05HIGHFalse 'Going Concern' status is unusual in FDD context and warrants clarification on financial health
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 | 1 |
| Territory type | Geography-based region defined by number of households |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 57 hrs
- POS system
- Zr Ware
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zr Ware
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ZEROREZ · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ZEROREZ franchise?
The total investment to open a ZEROREZ franchise ranges from $219K – $411K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ZEROREZ franchise owners earn?
According to Item 19 of the ZEROREZ FDD, the average gross sales per unit is $1.4M. The median is $890K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is ZEROREZ's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ZEROREZ (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 ZEROREZ franchise locations are there?
As of their most recent FDD filing, ZEROREZ has 82 total units in the United States, including 21 franchised units and 22 company-owned units. 8 new units were opened in the latest reporting year.
Is ZEROREZ a good franchise to buy?
FranchiseVerdict rates ZEROREZ as a A-grade franchise with a risk score of 37 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.