Zerorez Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Zerorez is a franchise providing carpet, upholstery, tile, and air-duct cleaning using its no-residue, water-based process. Franchisees run a route-based service with technicians handling residential and commercial cleaning in a territory.
FranchiseVerdict summary · 2026
A ZEROREZ franchise requires a total initial investment of $219K – $411K, including a $15K – $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $219K – $411K
- 75th pct Cleaning & Ma…
- Avg gross sales
- $1.4M
- Outlet subset35th pct Cleaning & Ma…
- Royalty
- 6.0%
- 9th pct Cleaning & Ma…
- Units
- 82
- 59th pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance 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
- COSTTotal investment $219K – $411K including a $15K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.4M/year (median $890K) (reported for a subset of outlets rather than the whole system), with an estimated 96% cash-on-cash return (based on Contribution Margin).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ZEROREZ Franchising Systems, Inc.
- Parent company
- Zerorez, Inc.
- Predecessor
- Aqua Care, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Shawn D. Moon
- Incorporated in
- Delaware
- 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
- CEO
- Shawn D. Moon
- Headquarters
- UT
- Founded
- 2001
- FDD year
- 2026
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost is about average for a cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $90K | $242K |
| Equipment, build-out, other | $114K | $154K |
| 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $219K – $411K
- Bottom third — review vs category
- Liquid capital req'd
- $90K – $242K
- Bottom third — review vs category
- Franchise fee
- $15K – $30K
- Top 40% of category 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
- 1.0 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 |
What do units actually make?
Average unit sales run 59% above the cleaning & maintenance norm.
Reported for a subset of outlets rather than the whole system
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
$171K
12.0% margin
Unlevered ROIC
36%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $551K as Contribution Margin. Our model estimates $171K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Contribution Margin deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one ZEROREZ unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
36%
Within the 30–60% "attractive franchise" band
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%.
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
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
- $1.4M
- Per unit, per year
- Median gross sales
- $890K
- Avg contribution margin
- $551K
- Reported as Contribution Margin in FDD Item 19
- Cash-on-cash
- 96.2%
- Based on Contribution Margin / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 43 franchisees
- vs category median 32
- Range (low → high)
- $31K→$12.9M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 192 Cleaning & Maintenance brands
Revenue is 4.5x 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 $1.4M/year in gross sales. Median is $890K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 4.5x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 9.3% (near the Cleaning & Maintenance average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 9.1% CAGR over 3 years across 82 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 Cleaning & Maintenance averages
How Zerorez Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 8
- Last reporting year
- Closed
- 5
- Turnover rate
- 8.3%
- Company-owned
- 22
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +9.1%
- Net unit change over 3 years
- 3-yr CAGR
- +9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 2
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- N/A
- limited sample (8 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Two minor litigation matters: a 2011 MN consent order ($1,000 penalty for unregistered sale) and a 2024 AAA arbitration over a regional developer dispute decided in the franchisor's favor. No bankruptcy or distress, audited financials, Item 19 disclosed. Healthy 82-unit system with +9.1% growth and strong AUV ($1.43M).
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 75 / 100 verdict
- 01MINOROld MN consent order (2011, $1,000)
- 02MINORArbitration decided in franchisor's favor (2025)
- 03MINORHealthy system: +9.1% growth, AUV $1.43M, 8.3% turnover
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.3% 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 | 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 $15K. 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. 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.
What is Item 19 in the ZEROREZ 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 ZEROREZ FDD and qualifies whose outlets they describe.
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 60 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 verdict score of 75 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
Are you the franchisor?
If you represent ZEROREZ, 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.