Risk Score
Pending analysis
Investment Range
$210,500 - $457,055
Franchise Fee
$58,000
Min Cash Required
$40,000
Total US Locations
19
Business Summary
Crawl Space Ninja operates a business that offers crawl space and basement encapsulation services. This includes waterproofing, dehumidification, ventilation, insulation, mold removal and prevention, air sealing, and door installation. Crawl Space Ninja uses its distinct brand, proprietary designs, and operating methods to provide these services to residential and commercial property owners.
Corporate History
Crawl Space Ninja Franchising LLC was established in March 2018 in Tennessee. The company started offering franchises in the same year, 2018. It is entirely owned by Crawlspace Ninja Holding LLC, also a Tennessee company. An affiliate, IAQS Operations, LLC, has been operating a business similar to the Crawl Space Ninja concept since January 2006.
Financial Overview
Investment Range
$210,500 - $457,055
Franchise Fee (Low)
$58,000
Franchise Fee (High)
$59,000
Minimum Cash Required
$40,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$222,555
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Crawl Space Ninja's financial statements include a note indicating that the franchisor's financial condition may raise questions about its ability to provide services and support to franchisees. However, the company's management has evaluated its ability to continue as a going concern and concluded that there is no significant doubt, citing positive net income in 2023 and the company's liquidity. The financial statements show a positive net income of $246,812 in 2023, a loss of $34,673 in 2022, and a positive net income of $438,953 in 2021. Member's equity was negative in 2022 but positive in 2023. Cash and cash equivalents decreased significantly from $317,934 in 2022 to $61,886 in 2023.
Financing Details
Crawl Space Ninja does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any loans, leases, or other obligations.
Performance Metrics
Total US Locations
19
Franchised Units
18
Corporate Units
1
Avg Square Footage
500
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Crawl Space Ninja has no litigation to report.
Bankruptcy History
Crawl Space Ninja has no bankruptcy history to report for the franchisor or its management.
Agreement Terms
Initial Term
5 years
Renewal Term
10 years
Renewal Conditions
To renew, Crawl Space Ninja franchisees must meet several conditions. They need to be in full compliance with their agreement and not have more than three instances of default during their current term. Franchisees must provide at least six months' written notice before the term ends, pay a renewal fee of $5,000, and sign a new franchise agreement which may have different terms. They also need to keep their vehicle with proper insurance and current branding, sign a general legal release, and fulfill any current qualification and training requirements, including additional training.
Training & Support Program
Franchisor Assistance
Crawl Space Ninja provides extensive assistance to its franchisees. Before opening, Crawl Space Ninja approves the territory, lends the operations manual, provides a list of required equipment and supplies, and conducts initial training for up to three people in Knoxville, TN. It also reviews the proposed lease and offers three days of on-site production training within 60 days of the business opening. After opening, Crawl Space Ninja offers additional mandatory or optional training programs, including an annual conference. It provides remedial on-site training for a fee upon request and offers individualized support via phone, video, or email. Crawl Space Ninja provides updated lists of approved suppliers and specifications for products and services, and it offers samples of advertising materials. The franchisor conducts inspections of the business and approves all local advertising. Crawl Space Ninja also administers the Brand Development Fund and maintains the technology platform for the business's intranet and email system.
Initial Training Hours
182
Training Location
Knoxville, TN
Ongoing Support
Crawl Space Ninja provides ongoing support through mandatory and optional additional training programs, which may include up to five days of training and a three-day annual conference with a fee of $500 per person. Upon request, Crawl Space Ninja can provide remedial on-site training, though franchisees must cover the trainer's per diem and travel expenses. Franchisees can also receive individualized assistance and counseling via phone, video conference, email, or mail at no additional charge, within reasonable limits. Crawl Space Ninja provides updated lists of approved suppliers and specifications for products and services, and it offers samples of advertising materials. The franchisor conducts inspections of the franchised business and approves all local advertising. Crawl Space Ninja also administers the Brand Development Fund and maintains the technology platform for the business's intranet and email system.
Franchise Requirements
Ideal Candidate Profile
Crawl Space Ninja looks for franchisees who are willing to be actively involved in the business's operations, or at least actively oversee it if a General Manager is appointed. Candidates must be able to personally complete the initial training program, and ensure their General Manager also completes it. Franchisees need to be capable of implementing and following a proven sales training and methodology and are expected to have at least one dedicated salesperson per territory, potentially adding another by Year 3 to meet revenue targets. They must be prepared to maintain minimum sales performance levels and make mandatory minimum royalty and advertising fund payments, regardless of sales. Candidates should also be ready to comply with all local, state, and federal regulations, including obtaining any necessary contractor's licenses or mold remediation certifications.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Staff Count
2
Territory Size Requirements
Crawl Space Ninja territories are defined individually based on geographic boundaries such as zip codes, streets, or towns, cities, or counties. The size and scope of each territory are determined by considering factors like minimum numbers of households, average home prices, and household incomes, using the most recent U.S. Census data available.
Staffing Notes
Crawl Space Ninja requires franchisees to be actively involved in operating the business, or at least supervise it if a General Manager is appointed. The franchisee, or their designated General Manager, and up to two additional employees must complete the initial training program. For each territory, franchisees are required to have at least one dedicated Sales Ninja, with the expectation to add another by Year 3 to meet revenue goals. Multi-territory operators are required to have a minimum of one salesperson and one customer service representative per territory. All employees are under the franchisee's sole control, and the franchisor does not act as a joint employer. General Managers must be approved by Crawl Space Ninja and are also required to complete the initial training program. There are detailed operational guidelines for staffing, including job descriptions, recruiting, training, compensation structures, time tracking, performance evaluations, and uniform/dress code policies.