Bottom line
- Total investment $219K – $411K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $890K). Estimated payback in 0.6 years.
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
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 ZEROREZ unit return on the cash you put in?
Unlevered ROIC · per unit
36%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ZEROREZ units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.1M purchase
Total debt
$5.7M
SBA $3.6M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 41 / 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
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
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ZEROREZ · FDD (2026) PDF