Enviro-Master Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$96,260 - $220,260
Franchise Fee
$20,000
Total US Locations
96
Business Summary
Enviro-Master operates a service-based business providing restroom hygiene, drain line management, window cleaning, power washing, and a variety of paper and chemical products. Enviro-Master's services are delivered to commercial establishments such as restaurants, hotels, and schools.
Corporate History
Enviro-Master International Franchise, LLC was formed on December 30, 2013, as a North Carolina limited liability company. Its predecessor, Enviro-Master Franchise, LLC (EMF), was formed earlier on November 12, 2010, and began offering franchises in January 2011. EMF's franchise business operations were transferred to Enviro-Master International Franchise, LLC on December 31, 2013. In March 2022, EMP Enviro-Master HoldCo, LLC, an affiliate of Eagle Merchant Partners, acquired control of Enviro-Master International Franchise, LLC.
Financial Overview
Investment Range
$96,260 - $220,260
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$7,900
Equipment Costs (High)
$8,900
Working Capital
$70,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Qualified opinion
Financial Health Notes
The auditors issued a qualified opinion on Enviro-Master's consolidated financial statements because the company has not separately identified and valued certain intangible assets acquired in business combinations, instead subsuming them into goodwill. This accounting treatment is a departure from generally accepted accounting principles and affects the reported amounts of intangible assets, goodwill, and the resulting amortization expense. The specific financial impact of this accounting practice has not been determined.
Financing Details
Enviro-Master may, at its discretion, offer franchisees the opportunity to finance up to $10,000 for certain large equipment purchases. This financing comes with a 0% annual interest rate and must be repaid in weekly installments over a 26-week period. If the financing is for a business entity, Enviro-Master requires a personal guarantee from the owners. Enviro-Master also takes a security interest in the financed equipment and the franchisee's accounts receivable until the loan is fully repaid.
Performance Metrics
Total US Locations
96
Franchised Units
94
Corporate Units
2
Avg Square Footage
400
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Enviro-Master has been involved in two litigation cases. The first case, filed in 2018 by Seattle Sanitation Services, Inc., alleged violations of Washington State's Franchise Investment Protection Act and sought rescission of a franchise agreement. Enviro-Master settled this dispute in 2019 by repurchasing the franchisee's territory for approximately half of the initial franchise fee, choosing to avoid higher litigation costs. The second case, filed by Enviro-Master in July 2023 against a former franchisee, Pro-Hygiene, LLC, alleged breach of contract, trademark infringement, unfair competition, and false designation. Enviro-Master sought injunctive relief and damages because the former franchisee failed to remove trademarks and equipment after termination. This case was settled in September 2023, with the defendants agreeing to pay Enviro-Master $48,700, assign certain accounts receivable, and permanently remove the trademarks and equipment.
Bankruptcy History
Enviro-Master has no bankruptcy information required to be disclosed in its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Enviro-Master franchisees must notify the franchisor 180 to 240 days before their initial term expires. They must be in substantial compliance with their agreement and all other agreements, have made all payments to Enviro-Master and its affiliates on time, and have updated their locations and training as required. Franchisees must also sign a general release of claims against Enviro-Master and its affiliates (which may not apply under certain state laws) and pay a renewal fee equal to 10% of the then-current initial franchise fee. Finally, they must sign the franchisor's then-current franchise agreement, which may include different terms and conditions, though the royalty, service, and national advertising fees will not increase beyond what is permitted in the original agreement.
Training & Support Program
Franchisor Assistance
Before opening, Enviro-Master designates the franchisee's territory, provides initial training for up to two individuals (with additional attendees incurring a fee), loans a copy of its Operations Manual, and provides approved software. Enviro-Master also provides logo and material specifications and advises on preparing to open, including product and equipment acquisition, advertising, and operations. After opening, Enviro-Master offers continuing training (for a fee of approximately $325 per day per person), provides updated lists of approved products and suppliers, reviews new suppliers (potentially with a review fee), and offers various communications and resources. Enviro-Master facilitates customer credit card payments, manages and collects accounts receivable, prepares monthly statements, and centralizes ordering. The franchisor also offers support services via telephone or on-site (subject to personnel availability and daily consulting fees), reviews and approves advertising materials, and coordinates the local digital marketing campaign.
Initial Training Hours
192
Training Location
Charlotte, NC
Ongoing Support
After opening, Enviro-Master provides ongoing support through supplemental and refresher training sessions, updated lists of approved products and suppliers, and review of any new suppliers proposed by franchisees. Enviro-Master also provides information on services and products, facilitates credit card payments, manages and collects accounts receivable, prepares monthly customer statements, and offers centralized ordering of supplies. Support services are available on-site, by phone, or through other means, covering administration, bookkeeping, inventory control, and troubleshooting operational problems. Enviro-Master reviews and approves advertising, marketing, and promotional materials and coordinates the mandatory local digital marketing campaign. Franchisees and their key staff are required to attend annual national and regional meetings, incurring reasonable conference fees, travel, lodging, and meal expenses.
Franchise Requirements
Ideal Candidate Profile
Enviro-Master seeks franchisees or their designated general managers who are personally involved in the day-to-day operation and management of the Franchised Business. These individuals are expected to devote full time, energy, and best efforts to the business. The General Manager, if applicable, must have at least a 10% equity interest in the franchisee entity and must successfully complete the initial training program. Franchisees are also expected to actively engage in market development and sales, including meeting a minimum sales associate requirement, and may even serve as a sales associate for their first Franchised Business if they meet sales performance thresholds. Strong supervision and attention to operations are highly valued.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Enviro-Master territories are defined by various factors including geographic size, population, and the number of franchised businesses operated. There is no set minimum or maximum territory area, with sizes potentially varying between densely populated metropolitan areas and more rural regions. Enviro-Master expects that each territory will encompass approximately 10,000 to 25,000 businesses when the Franchise Agreement is signed.
Staffing Notes
Enviro-Master requires franchisees to employ and maintain a minimum of one full-time sales associate for each territory, with the franchisee potentially serving as the sales associate for their first business. This initial sales associate must be hired before opening. If the franchisor increases the Minimum Sales Associate Requirement, franchisees must add additional sales associates every six months until the requirement is met. If a sales associate leaves, franchisees have 60 days to fill the position. Additionally, the franchisee or an appointed General Manager (who must have at least a 10% equity interest in the business entity and acceptable management experience) must devote full-time effort to managing the business. Franchisees are responsible for their own personnel policies, hiring, firing, and training of all staff, and must ensure employees comply with system requirements and maintain good customer relations.