Action Duct Cleaning Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$69,010 - $113,250
Franchise Fee
$39,500
Min Cash Required
$10,000
Total US Locations
4
Business Summary
Action Duct Cleaning is a franchise business that offers a broad range of cleaning services for air handling systems in both residential and commercial properties. This includes services such as HVAC duct cleaning, dryer duct cleaning, kitchen exhaust cleaning, chimney cleaning, and gutter cleaning. These services are performed on-site at the customer's building by a team of trained technicians.
Corporate History
Action Duct Cleaning's business concept was originally founded in 1978 by Dan and Betty Stradford, who incorporated the affiliate company, Action Duct Cleaning Company, Inc., in 1984. The affiliate expanded with offices in Riverside County (1987) and Orange County (1989), which were later sold to branch managers in 2018 and 2019. The franchisor entity, Action Duct Cleaning Franchising, Inc., was chartered in California on October 16, 2017, and began offering franchises on October 31, 2018.
Financial Overview
Investment Range
$69,010 - $113,250
Franchise Fee (Low)
$39,500
Franchise Fee (High)
$39,500
Minimum Cash Required
$10,000
Royalty %
10%
Equipment Costs (Low)
$12,500
Equipment Costs (High)
$41,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Action Duct Cleaning's financial statements received an unqualified opinion from its auditor, indicating fair presentation. While the company reported net losses in 2022 and 2023, it showed a slight net income in 2021. The company's current assets exceed its current liabilities, suggesting adequate short-term liquidity. No going concern issues were identified by the auditor.
Financing Details
Action Duct Cleaning generally does not provide financing for franchise costs or leases. However, it may offer partial or full financing for the Initial Franchise Fee to candidates who have been an employee of the franchisor or an affiliate for over 12 months, or who have experience managing a business in a related industry. Eligibility for this financing also depends on the candidate's credit score, net worth, and existing debt. Any loans provided for the franchise fee would be payable monthly, carry a 10% interest rate, and have a maximum term of 36 months.
Performance Metrics
Total US Locations
4
Franchised Units
3
Corporate Units
1
Avg Square Footage
200
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Action Duct Cleaning has no legal disputes or lawsuits to report.
Bankruptcy History
Action Duct Cleaning has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Action Duct Cleaning franchisees must have substantially complied with their agreement obligations throughout the term and be in compliance at the time of renewal. They need to provide written notice of their intent to renew 90 to 180 days before the current term expires. Franchisees must pay a renewal fee equal to 10% of the initial franchise fee charged to new franchisees at that time, and sign the then-current franchise agreement and any other required companion agreements, including a general release of the franchisor. If operating from a commercial facility, the business's equipment, decor, signage, and furnishings must be updated to meet the current standards for new Action Duct Cleaning locations. The new agreement may have materially different terms and conditions, but the territory boundaries and continuing royalty rate will not be higher than those for other similarly situated renewing franchisees.
Training & Support Program
Franchisor Assistance
Action Duct Cleaning provides several forms of assistance to its franchisees. Before opening, the franchisor assigns a protected territory and offers a 10-day "Action Duct Cleaning University" training program at its Altadena, CA headquarters for two individuals, which covers management and operations and includes access to comprehensive Operations and Policy & Procedures Manuals. It also provides guidance on commercial site selection if a franchisee opts not to operate from a home office. On an ongoing basis, Action Duct Cleaning lists the franchisee's contact information on its website, offers telephone and email advisory services for operational and management questions, and continually researches new services, equipment, and industry developments. When the system grows, the franchisor plans to hold annual conferences for all franchisees. It also develops promotional and marketing materials, providing samples to franchisees.
Initial Training Hours
80
Training Location
Action Duct Cleaning Headquarters in Altadena, CA
Ongoing Support
After a franchisee opens, Action Duct Cleaning provides ongoing support by listing the business's contact information on its website and maintaining a telephone and email advisory service for operational, administrative, sales, and management inquiries. The franchisor continuously researches and develops new services, equipment, and industry information for franchisees to incorporate. Once the number of operating franchises reaches a certain point, Action Duct Cleaning will also hold annual conferences to discuss system improvements, new equipment, sales and operating techniques, quality control, marketing, and accounting.
Franchise Requirements
Ideal Candidate Profile
Action Duct Cleaning does not require franchise owners to have prior experience in the cleaning industry, as comprehensive training is provided. The ideal candidate will gain sufficient knowledge from this training to bid on projects, sell services, manage operations, and supervise staff. Franchise owners can either personally supervise the business or designate a trained general manager for day-to-day operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Action Duct Cleaning territories are typically defined by county or municipal boundaries, geographic or highway boundaries, or zip codes. Each territory generally includes a population of at least 600,000 residents and is not expected to exceed two million residents. The franchisor uses U.S. Census data and directories to help evaluate and define these territories.
Staffing Notes
Action Duct Cleaning services are carried out by a team of one or more trained technicians at customer locations. Franchise owners are responsible for staffing their business, including recruiting, training, and motivating their team. Franchisee employees require Worker's Compensation Insurance before attending training. The business must be directly supervised daily by either the franchisee or a general manager who has successfully completed the franchisor's training program and signed a confidentiality agreement. If a trained general manager or controlling owner dies or becomes permanently disabled, a new general manager must be hired and complete the initial franchise training within 90 days.