PuroClean franchise
A franchisee runs a property restoration business providing drying, water and fire damage mitigation, mold remediation, cleaning and casualty-related reconstruction for residential and commercial customers, working from a home or small leased office with a branded service vehicle.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean)
- Document
- FDD 2026, issued 2026-04-20
- Item
- Item 15
- Page
- PDF p. 51
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641158
you must exclusively and directly supervise the Franchise Business for at least forty hours of each business week
An individual franchisee must exclusively and directly supervise the business for at least 40 hours each business week and devote full-time effort to directing outside sales, or hire an experienced outside salesperson. For a corporation or partnership, an equity owner or partner must provide the same 40 hours of on-premises supervision. Every shareholder or partner must sign a personal guarantee of all obligations under the Franchise Agreement. A fully trained manager who has completed the initial classroom training may run a second franchise bought by an existing franchisee, and that manager need not hold equity.
What stands out
- Total initial investment for a new single unit is $108,503–$152,618 with the vehicle and equipment package financed, or $233,503–$277,118 if both are purchased; the initial franchise fee is $59,000.
- Royalties on mitigation work start at 10% of gross receipts each calendar year and decline in steps to 3% above $1.75 million; reconstruction work is a flat 3%. A minimum royalty of $400 to $2,500 a month applies regardless of sales.
- Item 19 discloses gross sales only for 393 franchisees: average $941,644, median $500,496, with just 28% reaching the average and the bottom quartile averaging $100,895.
4 more observations
- There are no company-owned outlets; franchised units grew from 349 to 433 across 2023–2025, with 40 of the 57 departures recorded as 'ceased operations — other reasons'.
- The territory is expressly non-exclusive: only the office location inside the Protected Office Location is protected, and any franchisee may market anywhere.
- The owner must supervise the business at least 40 hours a week, and every owner — plus a spouse with no ownership interest — must personally guarantee the agreement.
- Restoration products, equipment, vehicles and core software must come from designated suppliers, and at least 2% of gross receipts must be spent with the sole approved products supplier each year.
Things to verify
- Ask how the 10% opening royalty tier resets every January and what blended royalty rate a franchisee at the $500,496 median actually paid in 2025.
- Item 7's purchase-option low of $233,503 is $8,000 below the sum of its own line items; ask the franchisor to reconcile it.
- Item 20 Table No. 1 shows 351 franchised outlets starting 2023 while its own total row and Table No. 3 show 349; ask which figure is correct.
5 more questions
- Roughly 40 outlets left the system over three years under 'ceased operations — other reasons' rather than termination or non-renewal; ask what circumstances that category covers.
- Item 19 excludes franchisees open less than one full year, and 25% of reporting franchisees averaged about $100,000 in sales; ask how long ramp-up typically takes and what the first-year distribution looks like.
- Confirm the status and potential exposure of the pending Born Active franchisee suit and the Schatz arbitration over $608,935 in claimed unpaid royalties.
- Confirm what liquid capital and net worth the franchisor screens for, since neither is stated in the FDD.
- Some current and former franchisees have signed confidentiality clauses; ask for a validation list that includes franchisees free to speak.
Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A PuroClean franchisee runs a property restoration business: drying, water and fire damage mitigation, mold remediation, cleaning and casualty-related reconstruction for homeowners, businesses and insurers. The work is done out of a branded vehicle from a home or small leased office rather than a retail site, so no real estate purchase is involved. PuroSystems, LLC has franchised restoration businesses since 1991 and under the PuroClean mark since 2001, and owns no outlets itself.
Item 7 puts a new single unit at $108,503-$152,618 if the vehicle and equipment package are financed, or $233,503-$277,118 if both are bought outright, in each case for a territory of up to 100,000 people and including three months of working capital. The initial fee is a flat $59,000, cut to $29,500 for qualifying conversions and $25,000 for an additional unit. Mitigation royalties start at 10% of gross receipts each January and step down to 3% past $1.75 million; reconstruction work is a flat 3%; and a minimum royalty of $400 to $2,500 a month is owed regardless of sales. On top sit a 2% marketing fee capped at $23,500 for 2026, a 2% local advertising requirement, DASH software at about $500 a month, and a 2% of gross receipts purchase obligation to one designated supplier.
Item 19 reports gross sales and nothing else. Across 393 franchisees open all of 2025 and at least one full year, average sales were $941,644 and the median $500,496, with only 28% reaching the average. The top decile averaged $4,276,094 and one outlet reported $20,337,574, while the bottom quartile averaged $100,895 and the bottom decile $15,287 on a median of $398. Franchisees employing a Business Development Representative averaged $1,488,476 against $611,312 for those without, though the comparison is observational. No cost, margin or profit figure appears, and the data are unaudited franchisee submissions.
Item 20 shows franchised outlets rising from 349 to 433 over 2023-2025 on 141 openings against 13 terminations, 4 non-renewals and 40 outlets ceasing operations for other reasons, with 42 transfers and no company-owned units at any point; 60 new outlets are projected for 2026. Item 3 discloses four matters: a pending California suit by a franchisee alleging fraud in the inducement and disclosure failures, and three collection arbitrations the franchisor brought against franchisees, one still in discovery over $608,935 in claimed unpaid royalties. Item 15 requires the owner to supervise at least 40 hours a week and to guarantee obligations personally, with a spousal guarantee as well, and Item 12 confirms the territory is not exclusive. Liquidity and net worth requirements are not disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 349 → 433 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $941,644 (disclosed) ÷ midpoint investment $192,811 = 4.88×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 91% of franchised units, clearly described (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 25 years (since 2001) · 433 outlets · Item 3: 4 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Existing franchisees may add units under the Multi-Unit Ownership Program. The initial franchise fee for an additional unit is $25,000 rather than $59,000, t… · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: New single-unit franchise, territory up to 100,000 population; home or leased office, no real estate purchase
$108,503–$277,118 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $59,000 Disclosed
VetFran gives veterans a 25% discount; existing PuroClean owners buying an additional franchise pay $25,000; conversion franchisees get discounts based on equipment already owned. None of these are the standard new single-unit price. |
|---|---|
| Total initial investment — low | $108,503 Disclosed
Low end of the 'Total (with Finance Options)' row for a new franchisee, which assumes the vehicle and the Equipment and Supplies Package are leased or financed and only three months of payments fall in the initial period. This row foots exactly to the table's own line items. |
| Total initial investment — high | $277,118 Disclosed
High end of the 'Total (with purchase of vehicle and Equipment and Supplies Package)' row for a new franchisee, which substitutes a $70,000 vehicle purchase and a $75,000 equipment purchase for the financed amounts. The recorded low/high therefore span both purchase methods; the two rows read $108,503–$152,618 (finance) and $233,503–$277,118 (purchase), and both appear identically on the FDD cover page. |
| Midpoint of range | $192,811 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean); we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement is stated on the cover pages or in Items 1, 5, 7, 11 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean); we do not fill gaps with estimates or third-party figures. No minimum net worth requirement is stated anywhere in the reviewed document. |
Item 7 assumes a Protected Office Location of up to 100,000 population and covers only the first three months of operation. No purchase of land or buildings is contemplated: the franchisee may work from home where permitted, and facility rent is shown at $0–$4,000. Excluded from the totals are sales and other taxes, workers' compensation insurance, and any amounts owed at the end of a financing term. The 'with Finance Options' totals ($108,503–$152,618) foot exactly to the table's line items, and the purchase-option high ($277,118) also foots once the $70,000 vehicle and $75,000 equipment purchase prices replace the financed amounts. The purchase-option low of $233,503 does not foot — the same substitution produces $241,503 — so the printed low is $8,000 below its own line items. Item 7 Note 2 also states the Equipment and Supplies Package lease range as $4,000–$6,500 while the table row reads $5,000–$6,500. $59,000 of the new-franchisee total is payable to the franchisor or its affiliates.
Item 7 line items (24)
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee — Lump sum on signing, to the franchisor | $59,000 | $59,000 |
| Vehicle — Three months of lease payments to the designated vehicle supplier; base purchase price instead is $70,000 | $7,000 | $14,000 |
| Equipment and Supplies Package — Three months of finance payments; outright purchase from the designated supplier is $75,000. Note 2 states the leasing range as $4,000–$6,500 | $5,000 | $6,500 |
| Insurance premium — Excludes workers' compensation | $2,500 | $5,000 |
| Office furniture | $0 | $2,200 |
| Office supplies — Three-month estimate | $100 | $300 |
| Telephone and utility deposits and fees | $350 | $500 |
| High-speed internet access — Three-month estimate | $200 | $400 |
| VOIP telephone equipment and services — Required supplier Clarity Communication Advisors | $455 | $455 |
| Answering service | $100 | $365 |
| Professional fees | $0 | $500 |
| Uniforms — About $100–$250 per person for one technician and the owner | $200 | $500 |
| Opening advertising and marketing materials | $0 | $2,200 |
| Training expenses — Travel, lodging, certification and testing costs for PuroClean Academy | $6,000 | $6,000 |
| Mentoring program — Franchisee receives a $2,500 royalty credit on successful completion | $2,500 | $4,500 |
| Continuing education courses — Four courses required in the first year | $0 | $2,000 |
| Facility rent — Zero if operating from home where permitted | $0 | $4,000 |
| Business licenses | $0 | $550 |
| Laser printer | $150 | $500 |
| DASH software — $1,500 setup plus about $500 per month, paid to Next Gear Solutions | $3,000 | $3,000 |
| Insurance industry claims estimating software — Xactware licence billed annually through the franchisor | $1,848 | $1,848 |
| Security deposit — To the vehicle leasing or financing company, depending on credit | $0 | $3,000 |
| Camera | $100 | $300 |
| Additional funds — three months — Working capital for the initial three-month phase | $20,000 | $35,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean) (table begins PDF p. 23) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (6)
| Format | Low | High | Fee |
|---|---|---|---|
| New franchisee — vehicle and Equipment and Supplies Package financed | $108,503 | $152,618 | $59,000 |
| New franchisee — vehicle and Equipment and Supplies Package purchased | $233,503 | $277,118 | $59,000 |
| Conversion franchisee (existing restoration business) — financed | $56,298 | $152,518 | $29,500 |
| Conversion franchisee (existing restoration business) — purchased | $56,298 | $277,018 | $29,500 |
| Additional franchise under Multi-Unit Program — financed | $61,530 | $100,420 | $25,000 |
| Additional franchise under Multi-Unit Program — purchased | $185,030 | $211,920 | $25,000 |
Ongoing fees
FDD Item 6Royalty
3%–10% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean)
- Document
- FDD 2026, issued 2026-04-20
- Item
- Item 6 — Note 2 — Mitigation Services Royalty Fee
- Page
- PDF p. 18
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641158
For your first $0 to $249,999.99 of Mitigation Services Gross Receipts 10%
Mitigation Services (drying, remediation, cleaning and related work) use a declining marginal scale on cumulative gross receipts each calendar year: 10% on the first $249,999.99, then 9%, 8%, 7%, 6%, 5% and 4% in $250,000 steps, and 3% above $1,750,000; it resets to 10% every January 1. Reconstruction Services are a flat 3% with no deduction for subcontracted work. Paid monthly by the 8th on the prior month's Gross Receipts. A Minimum Royalty Fee is owed regardless of sales: $400 a month in year 1, $1,000 year 2, $1,500 year 3, $2,500 years 4-5, then prior year plus CPI. Multi-Unit franchisees aggregate receipts across units on a wider scale. Conversion Franchisees holding $500,000+ in annual receipts get declining discounts over 48 months.
Brand advertising fund
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean)
- Document
- FDD 2026, issued 2026-04-20
- Item
- Item 6 — Note 7 — Marketing Fee
- Page
- PDF p. 21
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641158
Marketing Fee of 2% of Gross Receipts, collected by ACH at the same time as the royalty. The 2026 cap is $23,500, applied separately to each business under the Multi-Unit Program. Franchisees whose franchises have existed since at least 2004 do not pay the Marketing Fee.
Local marketing
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean)
- Document
- FDD 2026, issued 2026-04-20
- Item
- Item 6 — Note 6 — Local Advertising
- Page
- PDF p. 21
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641158
At least 2% of monthly Gross Receipts must be spent on approved, documented local advertising and promotion. Wages and referral fees do not count toward the requirement. A competitive advertising program meeting the franchisor's specifications must also be maintained at the franchisee's expense.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 3%–10% of gross sales Disclosed
Mitigation Services (drying, remediation, cleaning and related work) use a declining marginal scale on cumulative gross receipts each calendar year: 10% on the first $249,999.99, then 9%, 8%, 7%, 6%, 5% and 4% in $250,000 steps, and 3% above $1,750,000; it resets to 10% every January 1. Reconstruction Services are a flat 3% with no deduction for subcontracted work. Paid monthly by the 8th on the prior month's Gross Receipts. A Minimum Royalty Fee is owed regardless of sales: $400 a month in year 1, $1,000 year 2, $1,500 year 3, $2,500 years 4-5, then prior year plus CPI. Multi-Unit franchisees aggregate receipts across units on a wider scale. Conversion Franchisees holding $500,000+ in annual receipts get declining discounts over 48 months. Mitigation Services (drying, remediation, cleaning and related work) use a declining marginal scale on cumulative gross receipts each calendar year: 10% on the first $249,999.99, then 9%, 8%, 7%, 6%, 5% and 4% in $250,000 steps, and 3% above $1,750,000; it resets to 10% every January 1. Reconstruction Services are a flat 3% with no deduction for subcontracted work. Paid monthly by the 8th on the prior month's Gross Receipts. A Minimum Royalty Fee is owed regardless of sales: $400 a month in year 1, $1,000 year 2, $1,500 year 3, $2,500 years 4-5, then prior year plus CPI. Multi-Unit franchisees aggregate receipts across units on a wider scale. Conversion Franchisees holding $500,000+ in annual receipts get declining discounts over 48 months. |
|---|---|
| Advertising / brand fund | 2% of gross sales Disclosed
Marketing Fee of 2% of Gross Receipts, collected by ACH at the same time as the royalty. The 2026 cap is $23,500, applied separately to each business under the Multi-Unit Program. Franchisees whose franchises have existed since at least 2004 do not pay the Marketing Fee. Marketing Fee of 2% of Gross Receipts, collected by ACH at the same time as the royalty. The 2026 cap is $23,500, applied separately to each business under the Multi-Unit Program. Franchisees whose franchises have existed since at least 2004 do not pay the Marketing Fee. |
| Required local marketing | 2% of gross sales Disclosed
At least 2% of monthly Gross Receipts must be spent on approved, documented local advertising and promotion. Wages and referral fees do not count toward the requirement. A competitive advertising program meeting the franchisor's specifications must also be maintained at the franchisee's expense. At least 2% of monthly Gross Receipts must be spent on approved, documented local advertising and promotion. Wages and referral fees do not count toward the requirement. A competitive advertising program meeting the franchisor's specifications must also be maintained at the franchisee's expense. |
| Technology / software | $500/month Disclosed
DASH job-management software costs about $500 a month per licence, payable to third-party supplier Next Gear Solutions, with a $1,500 initial setup fee and a separate licence required for each business under the Multi-Unit Program. Two further mandatory technology charges sit outside this figure: Xactware insurance-industry claims estimating software at $1,848 a year per user licence billed through the franchisor (expected to rise about 5% a year), and Profile Gorilla compliance tracking software at $25 a month. DASH job-management software costs about $500 a month per licence, payable to third-party supplier Next Gear Solutions, with a $1,500 initial setup fee and a separate licence required for each business under the Multi-Unit Program. Two further mandatory technology charges sit outside this figure: Xactware insurance-industry claims estimating software at $1,848 a year per user licence billed through the franchisor (expected to rise about 5% a year), and Profile Gorilla compliance tracking software at $25 a month. |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean); we do not fill gaps with estimates or third-party figures. Item 6 Note 6 states the franchisor may designate a local or regional advertising cooperative and require the franchisee to contribute and participate, with each business holding one vote, but no contribution rate or amount is disclosed. |
| Transfer fee | $25,000 one-time Disclosed
Payable by the transferee before transfer; any broker fee is additional and paid by the franchisee. Reduced to $20,000 under the Multi-Unit Program and to $10,000 where the transfer is to a minority owner of the business or forms part of a single transaction transferring multiple businesses. The fee will not rise more than 40% in any year. Payable by the transferee before transfer; any broker fee is additional and paid by the franchisee. Reduced to $20,000 under the Multi-Unit Program and to $10,000 where the transfer is to a minority owner of the business or forms part of a single transaction transferring multiple businesses. The fee will not rise more than 40% in any year. |
| Renewal fee | $5,000 one-time Disclosed
Payable before renewal, in addition to the other renewal conditions in Item 17. Payable before renewal, in addition to the other renewal conditions in Item 17. |
| Royalty + ad fund (% of sales) | 5% Derived
|
Fee schedule (27 fees; 26 verified against the source, 1 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty Fee - Mitigation Services | Tiered (base 3%) | monthly | Yes | verified (tie-break) | Item 6, p. 18 | Reconstruction Services carry a separate flat 3% royalty (page 19). Multi-Unit Program franchisees with a signed amendment aggregate Mitigation Gross Receipts across units on a wider $400,000-step scale (same 10% to 3% range, 3% above $2,800,000). Conversion Franchisees holding $500,000+ in yearly Gross Receipts get time-limited discounts of 50%/40%/30% over months 1-36. Tiers verified against the page-18 table; both passes had them identically. value/range_high recorded low-to-high per the schema. Calculator audit 2026-09-03: The table header states the base is cumulative Gross Receipts for the current calendar year, and 'your first ... / your next ...' phrasing means each rate applies only to the slice of receipts inside that band - textbook marginal brackets on an annual base, resetting to 10% every January 1. (p. 18; "On Cumulative Gross Receipts for the Current Calendar Year ... For your first $0") |
| Royalty Fee — Reconstruction Services | 3% of gross sales | monthly | Yes | verified (2-pass) | Item 6, p. 19 | |
| Minimum Royalty Fee | Tiered (base $400) | monthly | Yes | verified (2-pass) | Item 6, p. 19 | Franchisor may debit the greater of this minimum or actual royalty paid if actual royalty falls short in a month. Calculator audit 2026-09-03: The Minimum Royalty Fee tiers are keyed to the year of the term, not to revenue, so calc_method must be time_based; leaving it unset invites a future reader to treat $400/$1,000/$1,500/$2,500 as revenue bands. (p. 19; "Period of Term / You Pay (per month): 1st year $400 ... 4th year $2,500 ... 6th ") |
| Marketing Fee (national ad fund) | 2% of gross sales | monthly | Yes | verified (2-pass) | Item 6, p. 21 | Franchisees whose franchises have existed since at least 2004 do not pay the Marketing Fee. |
| Local Advertising | 2% of gross sales | monthly | Yes | verified (2-pass) | Item 6, p. 21 | Wages and referral fees do not count toward the requirement. Calculator audit 2026-09-03: Item 6 Note 6 states a minimum spend obligation ('at least 2%'), not an exact rate, so value_is is 'floor' rather than an implied exact charge. (p. 21; "You must spend at least 2% of your monthly Gross Receipts on approved and docume") |
| Advertising Cooperative Contribution | Not stated | varies | Conditional | verified (2-pass) | Item 6, p. 21 | No cooperative currently required system-wide; franchisor reserves the right to designate one, with no stated rate or amount. |
| Optional Training Program Fee | Not stated | varies | No | verified (tie-break) | Item 6, p. 16 | Charged only if you attend an optional or additional training seminar. Where specific sales and marketing training is included, our expenses may instead be paid out of Marketing Fees. Item 6 table row verified on page 16; Note 3 supplies the formula. |
| Transfer Fee | $25,000 | one time | Yes | verified (2-pass) | Item 6, p. 16 | Reduced to $20,000 under the Multi-Unit Program, further to $10,000 for a transfer to a minority owner or as part of a multi-business transfer; cannot rise more than 40%/year. |
| Renewal Fee | $5,000 | one time | Yes | verified (2-pass) | Item 6, p. 16 | |
| Accounting Fee | Not stated | annual | Yes | verified (2-pass) | Item 6, p. 16 | |
| Administrative & Bank Fees | $25 | per event | No | verified (tie-break) | Item 6, p. 16 | Charged only when an NSF or balance-verification event occurs. Verified on the Item 6 table, page 16. |
| Audit by Franchisor | Not stated | per event | No | verified (tie-break) | Item 6, p. 16 | Payable only if an audit reveals understatement of Gross Receipts by 5% or more in any month. Verified on the Item 6 table, page 16. |
| Indemnification | Not stated | per event | No | verified (tie-break) | Item 6, p. 16 | Payable only if we are held liable for claims arising from your operation of the Franchise Business. Verified on the Item 6 table, page 16. |
| Late Fee (Royalty Fees) | Not stated (min $10) | per event | No | verified (tie-break) | Item 6, p. 16 | Applies to overdue Royalty Fees if funds are not available by the 8th day of the month. Verified on the Item 6 table, page 16. |
| Taxes and Fees | Not stated | varies | Yes | single-pass | Item 6, p. 17 | [Listed by one verification pass only (A); not independently confirmed.] |
| Annual International Convention Registration Fee | $695–$1,000 | annual | Yes | verified (2-pass) | Item 6, p. 17 | Charged only if the franchisor holds a Convention (optional at franchisor's discretion); cannot rise more than 50%/year; total incl. travel estimated $595-$1,000. |
| Minimum Equipment and Supply Purchase Requirements | 2% of gross sales | annual | Yes | verified (2-pass) | Item 6, p. 17 | Corroborated as Special Risk #3 on the cover page ('Inventory Control...at least 2% of your gross receipts each year'). |
| DASH Software | $500 | monthly | Yes | verified (2-pass) | Item 6, p. 17 | Separate $1,500 initial setup fee (Item 7) and a separate license required for each business under the Multi-Unit Program. |
| IICRC AMRT Course | $799 | one time | Yes | verified (2-pass) | Item 6, p. 17 | Item 6's own explanatory Note 10 (page 22) instead says the franchisor offers this course 'at a cost of $595.00,' conflicting with the $799 shown in the fee table (and with the $799 used consistently in Items 7 and 11). |
| IICRC Examination Fees | $310 | one time | Yes | verified (tie-break) | Item 6, p. 17 | Required after the initial training class to obtain WRT, ASD and AMRT certification. Ongoing recertification and CEC maintenance are required but are not priced. Note 11 confirms the components: 'The cost for the IICRC certification exam is currently $80 per exam. The exam fee for the ... AMRT course is $150.' |
| Optional Certified Priority Response Program Participation Fees | $79 | per event | No | verified (tie-break) | Item 6, p. 17 | Only for qualified franchisees who choose to participate. Fees may be adjusted from time to time, though the franchisor does not anticipate any increase exceeding 30% on an annual basis. Note 12 verified: participants 'must pay us an administration fee of $79 per job lead for certain administrative operations performed by our staff'. |
| Compliance Tracking Software | $25 | monthly | Yes | verified (tie-break) | Item 6, p. 17 | Verified on the Item 6 table, page 17. |
| Liquidated Damages | $100,000 | one time | No | verified (2-pass) | Item 6, p. 17 | Due only on termination for franchisee default or franchisee's premature termination. |
| Insurance Industry Claims Estimating Software (Xactware/Xactimate) | $1,848 | annual | Yes | verified (tie-break) | Item 7, p. 23 | Franchisee must sign the XactAnalysis License Agreement (Exhibit L) and the Xactware Solutions License Agreement (Exhibit M). The Conversion Franchisee note anticipates roughly 5% annual increases. Item 7 is internally inconsistent: New Franchisee Note 13 (page 26) says 'approximately $125 per month for each user license' and calls the table figure a 3-month estimate (3 x $125 = $375), while Conversion Note 13 (page 29) says 'approximately $1,848 per year'. $1,848 annual is the reading the table's own 'Annually' column and the conversion note both support. |
| Badger Routing Software (optional renewal) | $500 | annual | No | verified (tie-break) | Item 11, p. 41 | Renewal after the first six months is at the franchisee's option and expense. Confirmed verbatim on page 41. |
| XactNet Transaction Fee | Tiered (base 5.59%) | per event | No | verified (tie-break) | Item 11, p. 42 | Applies only to franchisees who choose to conduct business through the online claims channel. All four tiers verified against the printed table. |
| Insurance Premium | $2,500–$5,000 | annual | Yes | verified (tie-break) | Item 7, p. 23 | Premiums increase as revenue, employees and vehicles grow. The Conversion Franchisee note gives average annual expenses of $6,000 to $7,500 instead. The New Franchisee note treats $2,500-$5,000 as an annual premium while the conversion note treats its $2,000-$5,000 line as a three-month estimate against $6,000-$7,500 annual, so the two tables differ on period. |
Gross Receipts, the base for the royalty, marketing fee, local advertising requirement and minimum purchase requirement, is defined broadly as all revenue and income of every kind relating to the business, including deposits, interest and income from selling supplies, services or materials, excluding only taxes collected for the government. Combining the royalty ladder with the 2% marketing fee and the 2% local advertising requirement, a franchisee's fee load at low volumes approaches 14% of gross receipts before the marketing cap and the declining royalty tiers take effect. Other charges in Item 6 include accountant costs for mandatory annual financial statements, audit costs if an audit finds gross receipts understated by 5% or more in a month, $25 plus bank fees for insufficient funds, IICRC AMRT course ($799) and exam fees ($310 in total), and liquidated damages on early termination of the greater of $100,000 or 12 months of accrued royalty and marketing fees multiplied by the lesser of five or the years remaining in the term.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: 393 PuroClean franchisees that were in operation for the full January 1 – December 31, 2025 measurement period and had been open for one or more full years. All 393 reported sales data for every month and are the 'Reporting Franchisees'. Franchisees open less than one full year are excluded. There are no company-owned outlets, so the tables are entirely franchised units. Data were self-reported through the FranConnect royalty reporting tool and the franchisor states it has neither audited nor independently verified them. Sub-tables further split the same 393 into franchisees with a Business Development Representative (148) and without one (245), and report a separate group of 8 conversion-contract franchisees.
Qualifications: Sales only — the franchisor states plainly that the analysis contains no information about operating costs or expenses. Figures are self-reported by franchisees through FranConnect and are neither audited nor independently verified. Franchisees open less than one full year are excluded, so the newest and typically weakest units are outside the population. The averages are heavily skewed: a single outlet reporting $20,337,574 is the high value in every Part I and Part II table, only 28% of franchisees reached the systemwide average, and the low value in almost every tier is $0. The bottom decile averaged $15,287 with a median of $398. The comparison between franchisees with and without a Business Development Representative is observational, not controlled, and BDR users also averaged more years in business. One table is internally inconsistent: the 'Bottom 25%' row in Part II (with a BDR) repeats the Part I bottom-quartile figures and shows 98 franchisees, which cannot be right when that table's top quartile holds 37.
View full Item 19 disclosure and tables
PuroClean makes a financial performance representation covering gross sales only for calendar 2025. It reports on 393 franchisees that operated the whole year and had been open at least one full year — about 91% of the 433 franchised outlets at year end. The headline figures are an average of $941,644 and a median of $500,496. The gap between them, and the fact that only 112 of 393 franchisees beat the average, show how concentrated sales are at the top of the system: the top decile averaged $4,276,094 while the bottom quartile averaged $100,895 and the bottom decile $15,287. Item 19 breaks the same population down by whether the franchisee employs a Business Development Representative ($1,488,476 average for 148 with one, $611,312 for 245 without) and reports 8 conversion-contract franchisees separately at $1,066,124. Nothing in the item addresses costs, margins, owner compensation or profit, and the underlying figures are unaudited franchisee submissions.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Annual gross sales — all reporting franchisees 28% of units met or exceeded 112 of 393 franchisees exceeded the average. | System (all 393 reporting franchisees) Average | $941,644 | 393 | CY2025 | FDD p.55 |
| Annual gross sales — all reporting franchisees | System (all 393 reporting franchisees) Median | $500,496 | 393 | CY2025 | FDD p.55 |
| Annual gross sales — highest reporting franchisee The same single outlet is the high value in every tier table in Parts I and II. | System (all 393 reporting franchisees) High | $20,337,574 | 393 | CY2025 | FDD p.55 |
| Annual gross sales — lowest reporting franchisee At least one reporting franchisee recorded zero gross sales for the year. | System (all 393 reporting franchisees) Low | $0 | 393 | CY2025 | FDD p.55 |
| Annual gross sales — top quartile 31% of units met or exceeded Median $1,725,542; range $1,077,722 to $20,337,574. | Top 25% (average 8.0 years in business) Quartile avg. | $2,563,500 | 98 | CY2025 | FDD p.55 |
| Annual gross sales — top quartile | Top 25% (average 8.0 years in business) Quartile median | $1,725,542 | 98 | CY2025 | FDD p.55 |
| Annual gross sales — bottom quartile 49% of units met or exceeded Median $99,743; range $0 to $242,919. | Bottom 25% (average 3.8 years in business) Quartile avg. | $100,895 | 98 | CY2025 | FDD p.55 |
| Annual gross sales — bottom quartile | Bottom 25% (average 3.8 years in business) Quartile median | $99,743 | 98 | CY2025 | FDD p.55 |
| Annual gross sales — top half 27% of units met or exceeded Median $1,073,445; range $500,496 to $20,337,574. | Top 50% (average 7.2 years in business) Average | $1,652,139 | 197 | CY2025 | FDD p.55 |
| Annual gross sales — bottom half 53% of units met or exceeded Median $242,969; range $0 to $495,673. | Bottom 50% (average 4.2 years in business) Average | $227,523 | 196 | CY2025 | FDD p.55 |
| Annual gross sales — top decile 33% of units met or exceeded Median $3,735,330; range $2,141,536 to $20,337,574. | Top 10% (average 10.3 years in business) Average | $4,276,094 | 39 | CY2025 | FDD p.55 |
| Annual gross sales — bottom decile 36% of units met or exceeded Median $398; range $0 to $65,583. | Bottom 10% (average 5.0 years in business) Average | $15,287 | 39 | CY2025 | FDD p.55 |
| Annual gross sales — franchisees employing a Business Development Representative 28% of units met or exceeded Median $870,962; range $0 to $20,337,574. A BDR is an employee the franchisee hires to make repeat contact with local referral sources. | With BDR (average 6.1 years in business) Average | $1,488,476 | 148 | CY2025 | FDD p.56 |
| Annual gross sales — franchisees without a Business Development Representative 32% of units met or exceeded Median $329,911; range $0 to $8,553,907. | Without BDR (average 5.4 years in business) Average | $611,312 | 245 | CY2025 | FDD p.57 |
| Annual gross sales — conversion contract franchisees 38% of units met or exceeded Median $861,979; range $0 to $2,314,505. Conversions are independent restoration companies that joined the system. | Conversion contracts (average 2.6 years in business) Average | $1,066,124 | 8 | CY2025 | FDD p.58 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 349 | 67 | 3 | 3 | 0 | 9 | 401 | 11 | 0 |
| 2024 | 401 | 33 | 6 | 1 | 0 | 16 | 411 | 14 | 0 |
| 2025 | 411 | 41 | 4 | 0 | 0 | 15 | 433 | 17 | 0 |
Disclosed 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean), Item 20, Tables 1–3 (PDF p. 59). Table No. 1 and Table No. 3 disagree for 2023: Table No. 1 shows franchised outlets going 351 to 403, while its own Total Outlets row and Table No. 3 both show 349 to 401, with no company-owned outlets to explain the gap. Table No. 3 foots correctly in all three years and agrees with Table No. 1 for 2024 and 2025, so only the 2023 franchised row is out of line. Table No. 4 confirms zero company-owned outlets, but its rows are labelled 2022-2024 while its heading reads 2023 to 2025; it is omitted here because every value is zero. Closures fall almost entirely under 'ceased operations - other reasons' (9, 16, 15) rather than terminations or non-renewals, and four outlets relocated across state lines. Item 20 also notes three active PUROFIRST franchises at December 31, 2025 outside these tables, and that some current and former franchisees have signed confidentiality clauses.
Source data notes (14) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table 1 vs Table 3 2023: Validator warning and observations from both passes. Table 1's Franchised Outlets row shows 351 at the start of 2023 and 403 at the end, while Table 1's own Total Outlets row shows 349 and 401 and Table 3's TOTAL row shows 349 and 401. With Company Owned at 0 in every year, the franchised and total rows must be identical, but they differ by 2 in both columns. — Verified on the rendered page image of PDF page 59, so this is genuinely how the FDD prints it, not an extraction artifact. Table 1 Franchised: '2023 351 403 +52'; Table 1 Total: '2023 349 401 +52'; Table 3 TOTAL: '2023 349 67 3 3 0 9 401'. The 349/401 reading is corroborated three ways - Table 1's own Total Outlets row, Table 3's TOTAL row, and an independent re-sum of all 137 Table 3 state rows, which foot exactly to 349 + 67 - 3 - 3 - 0 - 9 = 401. Nothing corroborates 351/403, so the Franchised Outlets row is the outlier and 349 start / 401 end should be used. Rated minor because the TOTAL the site uses is corroborated and 2023 net change is +52 on either reading, so growth is unaffected; note that the 2-unit gap is 0.57% of the 349 start-of-year base, marginally above the 0.5% screen,
- [C/minor] Table 1 vs Table 3 2024: The same 2-unit gap carries into the 2024 start-of-year figures: Table 1's Franchised Outlets row starts 2024 at 403, while Table 1's Total Outlets row and Table 3's TOTAL row both start at 401. The rows converge at the end of 2024, where all three read 411. — Same root cause as the 2023 issue and the same corroboration: Table 3's 2024 TOTAL row (401 + 33 - 6 - 1 - 0 - 16 = 411) foots, matches the sum of its state rows exactly, and carries forward from the corroborated 2023 end of 401. Use 401 start / 411 end, giving 2024 net change +10. The discarded franchised-row reading would give +8. The direction of growth is positive either way and 2 units is 0.499% of the 401 start-of-year base, so this is minor, but the 2024 growth rate does read 2.5% rather than 2.0% depending on which row is taken.
- [A/minor] Table 1 2024: Pass B observed that Table 1's Net Change column 'follows the Total Outlets figures, not the franchised figures', citing +10 on the Total row against +8 on the Franchised row for 2024. — Misreading of the table rather than a document defect. Each row carries its own Net Change cell and each is internally correct as printed on page 59: Franchised 403 to 411 = +8, Company Owned 0, Total 401 to 411 = +10, and for 2023 both the Franchised row (351 to 403) and the Total row (349 to 401) print +52. There is no shared Net Change column, so no arithmetic error exists; the only real defect is the row-versus-row 2-unit gap already classified above.
- [D/minor] Table 3: Pass B reported that Table 3 foots cleanly in all three years and carries forward correctly year to year. — Confirmed, and this is corroboration rather than a discrepancy. Independently re-summed all 137 state rows: 2023 gives 349 / 67 / 3 / 3 / 0 / 9 / 401, 2024 gives 401 / 33 / 6 / 1 / 0 / 16 / 411, 2025 gives 411 / 41 / 4 / 0 / 0 / 15 / 433 - each identical to the printed TOTAL row, each footing, and each carrying forward. Table 3 is the reliable source for Item 20 unit counts.
- [C/minor] Table 4: Table 4 (Status of Company-Owned Outlets) is headed 'For Years 2023 To 2025' but its row labels read 2022, 2023 and 2024 - a one-year mislabeling reported by both passes. — Confirmed in the source: the heading prints 'Status of Company-Owned Outlets / For Years 2023 To 2025' while every row in both the All States and Total blocks is labeled 2022, 2023 or 2024. The heading and the row labels genuinely disagree in the printed document. No values are affected because company-owned outlets are 0 in all six rows on either labeling, which is also consistent with Table 1's Company Owned row and with Table 3's zero reacquisitions.
- [D/minor] Table 4: Pass B observed that Table 4 duplicates the same all-zero data twice, as an 'All States' block and a 'Total' block. — Not an error. The FTC format calls for state-level rows followed by a total row; because there is a single 'All States' row rather than per-state detail, the Total block necessarily restates the same zeros. All twelve cells are 0 in both blocks and they agree with each other.
- [D/minor] Table 3: Pass B observed that Table 3 discloses zero outlets reacquired by the franchisor in all three years, consistent with zero company-owned outlets throughout. — Confirmed and internally consistent: the Reacquired by Franchisor column is 0 in the 2023, 2024 and 2025 TOTAL rows, matching Table 1's Company Owned row (0 start and 0 end in all years) and Table 4's all-zero grid. Corroboration, not a discrepancy.
- [D/minor] Table 3: Pass B observed that attrition is concentrated in 'Ceased Operations - Other Reasons' (9, 16, 15 across 2023-2025) rather than terminations (3, 6, 4), with combined exits of 15, 23 and 19. — Confirmed against the Table 3 TOTAL rows and re-added: 2023 = 3 + 3 + 9 = 15, 2024 = 6 + 1 + 16 = 23, 2025 = 4 + 0 + 15 = 19. An observation about the composition of attrition, not a defect; the figures foot.
- [D/minor] Table 2: Pass B observed that transfers rose each year (11, 14, 17), about 3.9% of the 433-outlet base in 2025, and that Table 2 totals foot to the state rows in all three years. — Confirmed: Table 2's Total rows print 11 for 2023, 14 for 2024 and 17 for 2025. 17 / 433 = 3.9%. No discrepancy.
- [D/minor] Table 3: Four cross-state relocations are footnoted to Table 3 (Georgia to Washington, New Jersey to Florida, Virginia to Puerto Rico in 2024; California to Pennsylvania in 2025), which explains state-level start/end discontinuities. — Confirmed - the four asterisked footnotes print immediately beneath the Table 3 TOTAL rows and explain why individual state rows do not carry forward. They are relocations, not openings or closures, so the national totals are unaffected. They do not explain the Table 1 franchised-row gap, which is a separate issue.
- [D/minor] Table 5 2026: Pass B observed that Table 5's state rows sum to 60 projected new franchised outlets for FY2026 and 3 signed-but-not-open agreements, and that 60 projected openings is well above the 41 opened in 2025 and 33 in 2024. — Confirmed: Table 5's Total row prints 3 signed but not open, 60 projected franchised openings and 0 projected company-owned openings. The table foots. The gap between a 60-outlet projection and 41 actual 2025 openings is a forward-looking estimate, not a table error, but it is worth surfacing to users as an optimistic projection.
- [D/minor] Item 20 narrative 2025: Three active PUROFIRST franchises existed at December 31, 2025 and are not counted in any Item 20 table, though the FDD says the PUROFIRST business is not materially different from the PUROCLEAN franchise. — Confirmed in the Item 20 narrative: 'As of December 31, 2025, there were three active PUROFIRST franchises.' Legitimate scope difference rather than an error - Item 1 states the PUROFIRST brand has not been offered since 2001 and the Item 20 tables cover the PUROCLEAN Franchise Business this FDD offers. The site's 433 figure is the correct count for this brand; a franchisor-wide count would be 436.
- [D/minor] Item 19 vs Table 1 2025: The Item 19 reporting population of 393 franchisees open for a full year is 40 outlets below the 433 open at FY2025 year end, so the FPR excludes roughly 9% of the system. — Confirmed: Item 19 states there were 393 franchisees in the 2025 Measurement Period and that all 393 reported sales data for every month. The difference is definitional - Item 19 counts only outlets open a full year, while Table 1 counts outlets open at year end, and 41 outlets opened during 2025. No Item 20 figure is wrong; the point is a caveat on the FPR's coverage, not on the unit counts.
- [D/minor] Item 20 narrative: Item 20 discloses that some current and former franchisees have signed confidentiality clauses restricting their ability to speak about their experience. — A required FTC Rule disclosure, not a table defect. No numeric figure is affected; it is a caveat worth surfacing to prospective franchisees doing validation calls.
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean)
- Document
- FDD 2026, issued 2026-04-20
- Item
- Item 15
- Page
- PDF p. 51
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641158
you must exclusively and directly supervise the Franchise Business for at least forty hours of each business week
An individual franchisee must exclusively and directly supervise the business for at least 40 hours each business week and devote full-time effort to directing outside sales, or hire an experienced outside salesperson. For a corporation or partnership, an equity owner or partner must provide the same 40 hours of on-premises supervision. Every shareholder or partner must sign a personal guarantee of all obligations under the Franchise Agreement. A fully trained manager who has completed the initial classroom training may run a second franchise bought by an existing franchisee, and that manager need not hold equity.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
An individual franchisee must exclusively and directly supervise the business for at least 40 hours each business week and devote full-time effort to directing outside sales, or hire an experienced outside salesperson. For a corporation or partnership, an equity owner or partner must provide the same 40 hours of on-premises supervision. Every shareholder or partner must sign a personal guarantee of all obligations under the Franchise Agreement. A fully trained manager who has completed the initial classroom training may run a second franchise bought by an existing franchisee, and that manager need not hold equity. An individual franchisee must exclusively and directly supervise the business for at least 40 hours each business week and devote full-time effort to directing outside sales, or hire an experienced outside salesperson. For a corporation or partnership, an equity owner or partner must provide the same 40 hours of on-premises supervision. Every shareholder or partner must sign a personal guarantee of all obligations under the Franchise Agreement. A fully trained manager who has completed the initial classroom training may run a second franchise bought by an existing franchisee, and that manager need not hold equity. |
|---|---|
| Initial training | New Franchise Training runs 17 days, roughly three online and about 14 in person at the PuroClean Academy in Tamarac, Florida; the days need not be consecutive. The schedule covers product and equipment orientation, safety, estimating and pricing, marketing route generation, business management, accounting, sales, the DASH/PuroLogic operating systems, five days of water damage restoration, mold remediation and business development, and states a total of 116 hours, or 160 hours including the AMRT class. Training is mandatory for an individual franchisee and, at the franchisor's option, for each principal owning 25% or more and for the manager if no owner will manage the business; it must be completed before opening. Instructors, online training and materials are free for up to two attendees, with additional attendees currently charged $699. The IICRC AMRT course must be completed within 90 days after initial training. The franchisor may also require a five-day mentoring program with an experienced franchisee (about $2,500 in expenses, offset by a $2,500 royalty credit) and the 16-session online PuroLaunch program. Disclosed
The hours table does not foot: its two columns are subtotalled at 95 classroom and online hours and 39 hands-on hours (134 combined) against a stated total of 116, and the with-AMRT subtotals of 130 and 55 against a stated 160. |
| Multi-unit / development options | Existing franchisees may add units under the Multi-Unit Ownership Program. The initial franchise fee for an additional unit is $25,000 rather than $59,000, the transfer fee drops to $20,000, and mitigation royalties are calculated on the franchisee's aggregated receipts across all units on a wider, slower-declining scale. Qualification requires the existing business to keep generating at least $1,000,000 a year in mitigation services gross receipts, and each new unit must reach $200,000 in year one, $300,000 in year two, $500,000 in year three and $1,000,000 by year five, then hold $1,000,000 thereafter, with a one-year probationary period if it falls short. To expand beyond three units, every existing unit must already be above $1,000,000. Missing these levels does not by itself terminate the franchise but ends eligibility for the program and its reduced royalties. Prospects may also sign a Development Plan (Reservation) Agreement, paying a non-refundable $25,000 credited against the initial fee, to reserve an area before signing. Disclosed
Program terms appear across Items 1, 5, 6, 7 and 12. |
| Territory (Item 12) | The franchisee is assigned a Protected Office Location containing a population generally up to 100,000, but it is expressly not an exclusive territory. PuroClean describes the system as an 'open territory' model: the franchisee may market to and serve customers anywhere, and so may other franchisees and the franchisor. The only protection is locational - during the term the franchisor will not operate, or license another party to operate, a PuroClean business from an office address inside the Protected Office Location. The office may not be relocated without written approval. A non-exclusive 'Halo' area of up to 150,000 population may also be granted where no other PuroClean office will be sited, but it is revocable on default and reviewed annually. The franchisor may create regional or national strategic alliance accounts and assign that business to anyone, with no compensation owed. Continuation of the franchise does not depend on reaching a sales volume, and the franchisee may not sell through the internet. Disclosed
|
| Initial term | 20 years Disclosed
Franchise Agreement section 2.1. |
| Renewal | One consecutive renewal term of 20 years. Renewal requires notice, satisfaction of all monetary obligations, compliance with the Franchise Agreement, a $5,000 renewal fee, a release, and execution of a new franchise agreement, which the FDD warns may contain materially different terms including different fees and territorial rights. Disclosed
|
| Staffing | Item 7 assumes the business starts with the owner and one technician when estimating uniform costs, and Item 15 requires 40 hours a week of direct supervision by the owner or an equity partner plus full-time effort on outside sales or an experienced outside salesperson. Item 19 separately distinguishes franchisees who employ a Business Development Representative for local marketing. No overall staffing model or operating hours are otherwise disclosed. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 4 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 4 matter(s) disclosed Disclosed Item 3 lists four matters and states no others require disclosure. One is franchisee-initiated and pending: Born Active, LLC v. PuroSystems, LLC, filed February 2026 in Los Angeles Superior Court, alleging breach of contract, negligent misrepresentation, fraud in the inducement, unfair business practices and violations of the California Franchise Investment Law in connection with information disclosed and not disclosed in the FDD and with marketing and operational support. The franchisor says it had not been served as of the issuance date, expects to counterclaim for unpaid royalties, customer reimbursements and equipment rental, and will seek dismissal and referral to arbitration. The other three were brought by the franchisor to collect money owed. An arbitration against former franchisee David DePaoli seeking $70,000 in unpaid royalties drew a counterclaim for misrepresentation and breach of contract and settled in June 2022 with DePaoli agreeing to pay $32,702.50. An arbitration filed in July 2025 against Larry and Karen Katz sought $62,981.56 and settled in October 2025. An arbitration filed in October 2025 against Christopher Schatz and SB Enterprises sought $608,935.38 in outstanding royalties; the respondents counterclaimed in November 2025 for wrongful termination and tortious interference and the matter remains in discovery. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy information is required to be disclosed. |
| Personal guaranty | Required Disclosed
If the franchisee is a legal entity, each shareholder or general and limited partner must sign a written personal guarantee of all obligations under the Franchise Agreement. The state-required risk factors on the cover pages add that a franchisee's spouse must sign a document making the spouse liable for all financial obligations even without any ownership interest, placing marital and personal assets at risk. |
| Non-compete | During the term the franchisee may not engage in any other business similar to a PuroSystems franchised business. After termination or expiry a two-year restriction applies to the same activity within the Protected Office Location or within a 50-mile radius of the office, together with a prohibition on soliciting or accepting business from prior referral sources. Conversion franchisees are permitted to continue offering products and services that are not authorised for sale by system franchisees and are not substantially similar in purpose. Disclosed
Franchise Agreement sections 14.1.1 and 14.1.2. |
| Transfer restrictions | The franchisor must approve any transfer, defined to include transfer of an interest in the Franchise Agreement, in the franchisee entity, or in all or substantially all of the business assets. Conditions include payment of all money owed, no existing default, a release from the franchisee, execution of a new franchise agreement and payment of the transfer fee plus any referral fee; even a transfer to a corporation for convenience of ownership needs approval. The franchisor holds a right of first refusal and can match any offer. The transfer fee is $25,000 payable by the transferee, reduced to $20,000 under the Multi-Unit Program and $10,000 for transfers to a minority owner or as part of a multi-business transaction, with any broker fee borne separately by the franchisee. On death or disability, the interest is transferred to a third party the franchisor approves. Disclosed
|
| Termination / non-renewal | The franchisor cannot terminate without cause. With cause it may terminate for default, bankruptcy, abandonment and other grounds; curable defaults carry 30 days to cure after written notice, while bankruptcy, fraud, voluntary abandonment and felony conviction are non-curable. Conversion franchisees can additionally be terminated without a cure opportunity for relocating or transferring an interest in their existing business without consent, or using the franchise in connection with other businesses they own. On termination or non-renewal the franchisee must fully de-identify, pay all amounts due and observe the post-term covenants. Early termination triggers liquidated damages of the greater of $100,000 or the royalty and marketing fees accrued in the preceding 12 full months multiplied by the lesser of five or the years remaining in the term. Going the other way, the Clean Start Program lets a qualifying new franchisee exit in the first year of operation, with the franchisor assuming the vehicle lease and initial supplies package lease if both came from designated suppliers; conversion franchisees and buyers of existing businesses are excluded. Disclosed
Liquidated damages formula is from the Item 6 fee table. |
| Supplier restrictions (Item 8) | Aramsco/Interlink Supply is the only approved supplier of the initial Equipment and Supplies Package and, as of May 16, 2025, the only approved source for restoration products and equipment, with the franchisor stating it has no obligation to appoint additional sources. The franchisor itself is the only approved supplier of the Computer System, and the vehicle must come from a designated supplier at prices that supplier sets. Other required suppliers are Next Gear Solutions (DASH), Xactware (claims estimating), Clarity Communication Advisors (telephone) and Profile Gorilla (compliance tracking); the franchisor owns the business telephone number. From the first 18 months onward the franchisee must buy consumable branded products equal to at least 2% of gross receipts from Aramsco/Interlink. Alternative suppliers need written approval, with inspection, sample testing and evaluation charges. The franchisor discloses that these required purchases produced $414,684, or 1.3% of its $31,787,499 total revenue, in fiscal 2025. Disclosed
|
| Dispute resolution | Disputes go first to mediation with a mutually acceptable mediator or a mediation service the franchisor selects; in place of mediation the franchisor may require certain disputes to be submitted to a panel of franchisees chosen by the National Leadership Council. Arbitration is held in Broward County, Florida under AAA or CPR rules, subject to state law, and both choice of forum and choice of law are Florida. The state-required risk factors on the cover pages warn that out-of-state dispute resolution may cost more and produce a less favourable settlement. Disclosed
|
- Minimum royalty payments are due regardless of sales: $400 a month in year one rising to $2,500 a month in years four and five, then indexed to CPI.
- The franchisee must buy at least 2% of gross receipts in inventory and supplies each year from a single designated supplier, whether or not that much is needed.
- A spouse with no ownership interest must sign a guarantee of all financial obligations under the Franchise Agreement.
- The vehicle must be acquired from a designated supplier at prices that supplier sets, which the FDD acknowledges may exceed prices available elsewhere.
- The annual convention registration fee is payable even if the franchisee does not attend, and may rise by up to 50% a year.
- The territory is not exclusive: other franchisees, the franchisor and its affiliate Signal Restoration Services may serve customers inside the Protected Office Location.
- Early termination triggers liquidated damages of at least $100,000.
- Item 20 discloses that some current and former franchisees have signed confidentiality clauses restricting their ability to speak openly about their experience.
- Franchisees must hold a contractor, remediation or HVAC licence, or be qualified by a licensed contractor, where state law requires it, plus specialty licences for services such as mold remediation.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $100,895 | $941,644 | $1,082,891 |
| − Cost of goods / supplies assumption | $20,179 | $188,329 | $216,578 |
| − Payroll (excl. owner) assumption | $38,340 | $357,825 | $411,498 |
| − Occupancy assumption | $3,027 | $28,249 | $32,487 |
| − Other operating expenses assumption | $12,107 | $112,997 | $129,947 |
| − Royalty Fee - Mitigation Services disclosed marginal bands on annual revenue: 10% × $250,000 + 9% × $250,000 + 8% × $250,000 + 7% × $191,644 = $80,915 (band method stated by the FDD); rates differ by revenue type — this (higher-cost) schedule is applied to all revenue |
$10,090 | $80,915 | $89,973 |
| − Marketing Fee (national ad fund) disclosed 2% of gross sales = $18,833 |
$2,018 | $18,833 | $21,658 |
| − Local Advertising disclosed 2% of gross sales = $18,833 |
$2,018 | $18,833 | $21,658 |
| − Annual International Convention Registration Fee disclosed $695 per year |
$695 | $695 | $695 |
| − DASH Software disclosed $500/month × 12 = $6,000 |
$6,000 | $6,000 | $6,000 |
| − Compliance Tracking Software disclosed $25/month × 12 = $300 |
$300 | $300 | $300 |
| − Insurance Industry Claims Estimating Software (Xactware/Xactimate) disclosed $1,848 per year |
$1,848 | $1,848 | $1,848 |
| − Insurance Premium disclosed $2,500 per year |
$2,500 | $2,500 | $2,500 |
| = Modeled operating result before the items below (EBITDA-style) | $1,773 | $124,320 | $147,748 |
| − Manager compensation assumption | $65,000 | $65,000 | $65,000 |
| = Modeled result after manager compensation | −$63,227 | $59,320 | $82,748 |
| − Illustrative debt service assumption | $21,854 | $21,854 | $21,854 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$85,081 | $37,466 | $60,894 |
| Modeled operating margin | 1.8% | 13.2% | 13.6% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 2 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Advertising Cooperative Contribution (Item 6, p. 21) — amount not stated in the FDD (e.g. “then-current fee”)
- Accounting Fee (Item 6, p. 16) — amount not stated in the FDD (e.g. “then-current fee”)
Counted inside the operating-cost assumptions, not as separate fees:
- Minimum Equipment and Supply Purchase Requirements (Item 6, p. 17): 2% of revenue (your assumption; FDD requires at least 2%) = $18,833 — this is a required purchase that is cost of goods, covered by the COGS % assumption; make sure that assumption is at least this large
Overlap control: Royalty Fee — Reconstruction Services is an alternative royalty schedule for a different revenue type — the higher-cost schedule (“Royalty Fee - Mitigation Services”) is applied to all revenue instead (conservative upper bound); Minimum Royalty Fee is a floor on “Royalty Fee - Mitigation Services” ($4,800/yr) — already exceeded at this revenue, so not an additional charge.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean) · issued 2026-04-20. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — PuroSystems, LLC (PuroClean) Registry file 641158 · 314 pages Cover reads 'Issuance Date: April 20, 2026'; running footer reads 'PUROSYSTEMS – 2026 FDD'. Wisconsin registration effective 4/21/2026, status Registered. Direct document link: https://apps.dfi.wi.gov/apps/FranchiseSearch/details.aspx?id=641158&hash=178752916&search=external&type=GENERAL | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-20 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-08-31): two independent AI reading passes plus tie-break re-inspection of every disagreement; 72 of 77 material fields confirmed (68 with the exact page citation re-confirmed), 0 corrected, 1 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (8)
- investment.total_low
- investment.total_high
- item20.system_summary[0].franchised_start
- item20.system_summary[0].franchised_end
- item19.population_share_of_system
- franchisor.business_since
- franchisor.franchising_since
- fees.royalty.value
Extraction notes (14)
- investment.total_low and total_high span the two total rows of Item 7 Table A for a new franchisee: $108,503-$152,618 with the vehicle and Equipment and Supplies Package financed, and $233,503-$277,118 with both purchased. Both rows also appear on the FDD cover page. The finance-option row and the purchase-option high foot exactly to the table's line items; the disclosed figures were recorded unchanged.
- The Item 7 purchase-option low of $233,503 does not foot: substituting the $70,000 vehicle and $75,000 equipment purchase prices for the financed amounts gives $241,503, an $8,000 gap. The printed figure was recorded as disclosed and flagged as a question for the franchisor.
- Item 7 Note 2 states the Equipment and Supplies Package leasing range as $4,000–$6,500 while the table row reads $5,000–$6,500; the table row was used because it is what the totals foot to.
- The Multi-Unit Program table (Item 7 Section C) says its 'Other Expenditures' figures were copied from the first Item 7 table less the $59,000 initial franchise fee, but they do not reconcile: the first table implies $49,503–$93,618 financed and $174,503–$218,118 purchased, while the Multi-Unit table shows $36,530–$75,420 and $160,030–$186,920. The disclosed Multi-Unit totals were recorded as printed in alternative_formats.
- Item 20 Table No. 1 shows franchised outlets at 351 start / 403 end for 2023, but its own Total Outlets row and Table No. 3 both show 349 / 401 with zero company-owned outlets in every year. Table No. 3 foots correctly for all three years and agrees with Table No. 1 for 2024 and 2025, so the 2023 franchised row appears to be two units high. Table No. 1 was recorded as printed, which produces the validator warning that 2023 Table 1 franchised_end 403 does not equal Table 3 end 401.
- Item 20 Table No. 4 (company-owned outlets) is headed 'For Years 2023 To 2025' but its rows are labelled 2022, 2023 and 2024. Every value is zero, so the table was omitted from company_owned_status rather than recorded under uncertain year labels.
- fees.royalty records value 3 and range_high 10 because the schema treats value as the low end of a range. This understates what a typical franchisee pays: the mitigation rate resets to 10% every January 1 and only falls to 3% on cumulative annual receipts above $1,750,000, so a franchisee at the $500,496 system median pays a blended rate near 9-10% on mitigation work. Reconstruction work is a flat 3%. The note on the field sets out the full ladder.
- franchisor.business_since is 1990, the year PuroSystems was incorporated in Florida as Purofirst International, Inc.; the franchisor states it does not itself operate businesses of the type franchised. franchising_since is 2001, when the PUROCLEAN mark was first franchised. Restoration franchises were offered under the PUROFIRST mark from 1991 to 2001, and three PUROFIRST franchises remained active at December 31, 2025.
- item19.population_share_of_system is 90.8, computed as the 393 reporting franchisees divided by the 433 franchised outlets at December 31, 2025. The two counts are measured differently — the Item 19 population is limited to units open for at least one full year — so the ratio is indicative only.
- Item 19 Part II (franchisees with a Business Development Representative) contains an internal inconsistency: its 'Bottom 25%' row repeats the Part I bottom-quartile figures exactly ($100,895 average, $99,743 median, 98 franchisees) even though that table's top quartile holds only 37 franchisees. That row was not recorded as a metric. The other Part II and Part III counts do reconcile (148 with a BDR plus 245 without equals 393).
- The Item 11 training hours table does not foot: its column subtotals of 95 classroom/online and 39 hands-on hours sum to 134 against a stated total of 116, and the with-AMRT subtotals of 130 and 55 sum to 185 against a stated 160. The day count (17 days) and the stated totals were recorded as disclosed with the discrepancy flagged.
- No minimum liquid capital or net worth requirement is stated on the cover pages or in Items 1, 5, 7, 11 or 15, so both fields are null and not_disclosed.
- item20.us_only is set true. Item 20 Table No. 1 is headed 'Systemwide' without qualification, but Table No. 3 breaks the identical 433 outlets out by U.S. state plus Puerto Rico with no foreign location shown, and Item 1 describes no international operations.
- Verification 2026-08-31: flag_unresolved /franchisor/business_since
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