Biosweep Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$161,787 - $186,867
Franchise Fee
$45,000
Min Cash Required
$5,000
Total US Locations
40
Business Summary
BIOSWEEP franchises offer odor removal and indoor air and surface decontamination services using proprietary BIOSWEEP technology. This technology is designed to eradicate odors from sources such as fire smoke, cigarette smoke, skunk oil, animal urine, and sewage, as well as to decontaminate surfaces from viruses and bacteria. BIOSWEEP franchisees provide these services to residential and commercial customers within exclusive geographic territories. The services also extend to specific market segments including multi-family housing, real estate, automotive dealerships, trauma/crime scene cleanup, and healthcare facilities. Phocatox, the franchisor, also operates a National Accounts Program that works with entities like insurance companies and government agencies, and franchisees can opt into this program to participate in larger-scale projects such as fire smoke odor removal on insurance claims.
Corporate History
Phocatox Technologies, LLC, operating as BIOSWEEP Services, was established as an Indiana limited liability company on February 16, 2007. The company developed and manufactures the BIOSWEEP device, which uses photocatalytic oxidation (PCO) technology for odor removal and indoor air and surface decontamination. BIOSWEEP introduced this technology in 2007 and subsequently developed specific operational procedures. The company began franchising its BIOSWEEP Service Provider concept in October 2009, selling its specialized equipment exclusively to franchisees. In 2015, BIOSWEEP expanded its business to directly offer services to the insurance industry for fire smoke odor removal claims, a program now known as the BioSweep Service Provider Insurance Program.
Financial Overview
Investment Range
$161,787 - $186,867
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$5,000
Equipment Costs (Low)
$97,592
Equipment Costs (High)
$97,592
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Phocatox Technologies, LLC appears to be in a strong financial position, showing significant growth in net income from $10,935 in 2023 to over $1 million in 2024. The company's cash balance increased substantially from $193,942 in 2023 to $518,906 in 2024. BIOSWEEP also maintains positive working capital, with over $1.4 million in 2024, indicating it has more than enough current assets to cover its current liabilities. The independent auditor has issued an unqualified opinion on the financial statements, confirming they present the company's financial position fairly and without any going concern issues.
Financing Details
BIOSWEEP does not offer any direct or indirect financing to its franchisees. Additionally, BIOSWEEP does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
40
Franchised Units
40
Corporate Units
0
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
BIOSWEEP was involved in one significant legal dispute, PurAyr, LLC v. Phocatox Technologies, LLC, et al., which was filed on May 27, 2016. The plaintiff, a former franchisee/sub-licensor who had formed a new company, initiated the lawsuit claiming defamation, tortious interference with contracts and business expectancies, and business conspiracy against BIOSWEEP and its counsel. These claims stemmed from a letter issued by BIOSWEEP's counsel stating that the new company's competing product lacked proper certification for sale in Canada. BIOSWEEP filed counterclaims including breach of non-disclosure agreements, trade-secret misappropriation, breach of fiduciary duties, tortious interference, business conspiracy, and trademark infringement. The case moved from Virginia state court to federal court before being remanded back to the state court. This litigation was resolved on August 29, 2024, through a settlement agreement. The parties agreed to dismiss the litigation with prejudice, without any admission of liability. As part of the settlement, PurAyr, LLC agreed to cease its business operations and its principal agreed to a non-compete clause. This resolution occurred within three years of the FDD's issuance date.
Bankruptcy History
BIOSWEEP has no bankruptcy history to report for the franchisor or its key management personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, BIOSWEEP franchisees must provide written notice of their intention to renew at least 180 days before the current agreement expires. They must have fully complied with the Franchise Agreement throughout its entire term and must sign a renewal option agreement that maintains the same terms and conditions as their current Franchise Agreement. Additionally, franchisees are required to sign a general release of all claims against BIOSWEEP and its officers, directors, members, agents, and employees.
Training & Support Program
Franchisor Assistance
BIOSWEEP provides franchisees with comprehensive support before and after opening. Prior to opening, BIOSWEEP sells the necessary BIOSWEEP machines and safety equipment, provides an Operations Manual, and grants permission to use its trademarks and business system. It also offers initial training for up to 6 individuals at its Indianapolis location or, at its discretion, at the franchisee's site. BIOSWEEP also sets up a listing and customizable web page for the franchisee on its website (www.biosweep.com) and provides a private biosweep.com email address. For ongoing operations, BIOSWEEP offers continuous advice and counseling, promotes the business generally through web advertising, national trade shows, and public relations campaigns, and provides Search Engine Optimization for the franchisee's dedicated web page. The franchisor periodically shares contact information for national insurance carrier adjusters in the franchisee's territory and provides relevant sales and marketing presentations. It also makes spare parts available at standard prices and works to protect the BIOSWEEP trademark. Franchisees also gain access to online communication services and can receive report forms. BIOSWEEP may require franchisees to attend periodic update/refresher training (without charging a fee for the training itself, though franchisees cover travel/lodging/meals), and offers optional advanced training programs at a per diem rate.
Initial Training Hours
30
Training Location
Indianapolis, IN
Ongoing Support
After opening, BIOSWEEP provides ongoing support by continuing to offer the Operations Manual, permitting the use of its trademarks and business system, and maintaining the franchisee's website listing and email address. BIOSWEEP offers additional advice, counseling, and management assistance upon request. It promotes the business generally through web advertising, national trade shows, and public relations campaigns, and provides Search Engine Optimization for the franchisee's dedicated web page. The franchisor also periodically shares contact information for national insurance carrier adjusters in the franchisee's territory. BIOSWEEP makes spare parts available at standard prices, works to protect the BIOSWEEP trademark, and provides access to online communication services and report forms. BIOSWEEP may require franchisees to attend periodic update/refresher training sessions (with franchisees responsible for salaries, travel, lodging, and meals) and offers optional advanced training programs at a daily fee.
Franchise Requirements
Ideal Candidate Profile
BIOSWEEP encourages active owner involvement, though personal participation from the franchisee is not strictly mandated. The BIOSWEEP franchise is not a passive investment; either the franchisee owner or a designated manager must provide day-to-day supervision of the business. This manager must dedicate their best full-time efforts to the management and operation of the BIOSWEEP franchise. The individual franchisee owner is typically required to be one of the initial trainees, even if they plan to designate another person as the manager. Managers are not required to have an equity interest in the franchise but must successfully complete the initial training and sign a non-competition and non-disclosure agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
BIOSWEEP franchise territories are defined based on a population density ranging from a minimum of 750,000 to a maximum of 1,600,000 people, with an average territory population density of 1,200,000. These territories are delineated by specific geographic boundaries such as county lines, highways, streets, or landmark boundaries, and may also include particular market segments within these defined areas.
Staffing Notes
The BIOSWEEP franchise business requires day-to-day supervision by either the franchisee owner or a designated full-time manager. If a manager is hired, they must devote their best full-time efforts to the business and successfully complete the initial training program. Any replacement or additional managers will also need to complete this initial training at the franchisee's expense. While active owner involvement is encouraged, personal participation by the franchisee is not mandatory, provided a qualified manager oversees operations daily. All managers are required to sign a non-competition and non-disclosure agreement with BIOSWEEP.