PuroClean Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$49,325 - $245,920
Franchise Fee
$25,000
Min Cash Required
$15,000
Total US Locations
402
Business Summary
PuroClean businesses offer drying, cleaning, painting, repair, mitigation, remediation, and construction services. These services address property damage from events like fire, flood, vandalism, trauma, or mold, and also include purification, cleaning, and odor removal for HVAC systems, indoor air, structures, and property, whether the damage is casualty-related or not. PuroClean serves insurance companies, businesses, and residential clients.
Corporate History
PuroSystems, LLC was initially founded in Florida in 1990 as Purofirst International, Inc. The company changed its name to PuroSystems, Inc. in 2002 and then converted to PuroSystems, LLC in 2015. It began offering franchises under the PUROFIRST® trademark in 1991, and then introduced the current PuroClean® franchise in 2001, replacing the PUROFIRST offering. Since 2015, its parent company has been Puro Enterprise Holdings, LLC. An affiliate, Signal Restoration Services, also operates in the emergency and environmental property restoration field but does not use the PuroClean brand.
Financial Overview
Investment Range
$49,325 - $245,920
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$59,000
Minimum Cash Required
$15,000
Royalty %
10%
Marketing %
2%
Equipment Costs (Low)
$150
Equipment Costs (High)
$68,455
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PuroSystems, LLC has consistently generated strong net income over the past three fiscal years, with $5.9 million in 2023. However, the company has shown negative working capital in each of these years, meaning its current liabilities exceed its current assets. The total liabilities significantly increased between 2021 and 2022, though they slightly decreased in 2023. Despite these financial trends, the independent auditors have provided an unqualified opinion, indicating the financial statements are presented fairly, and have not expressed substantial doubt about PuroSystems' ability to continue as a going concern.
Financing Details
PuroSystems does not provide direct financing to its franchisees. Instead, PuroSystems offers indirect financing for vehicles through designated third-party suppliers like AGS Fleet and Bush Business Enterprises. These suppliers offer vehicle leases with terms that vary based on market conditions and the franchisee's credit history. For example, vehicle leases commonly have terms of 60 months, with monthly payments ranging from $450 to $1,100, and interest rates varying between 6-12% APR. A down payment may be required, and a security deposit might also be necessary depending on the franchisee's credit score. PuroSystems does not guarantee any of these lease obligations, and a default on a vehicle lease does not automatically trigger a default on the franchise agreement.
Performance Metrics
Total US Locations
402
Franchised Units
402
Corporate Units
0
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
8
Litigation Summary
PuroSystems has reported eight litigation cases. Four of these were prior actions, with three against former franchisees for unpaid fees that were settled between 2015 and 2022. One prior case involved an affiliate and its officers for breach of contract, settled in 2015. Additionally, PuroSystems initiated four new actions against franchisees in July and December 2023, specifically to enforce financial obligations under the franchise agreements.
Bankruptcy History
PuroSystems has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew, PuroClean franchisees must provide written notice at least 12 months before their current agreement expires. They must not be in default of their franchise agreement and must have substantially complied with all its terms. Franchisees are also required to sign a mutual release of claims and pay a renewal fee of $5,000. Additionally, they must execute PuroSystems' then-current renewal franchise agreement, which may have significantly different terms from their previous agreement, though no Initial Franchise Fee will be charged.
Training & Support Program
Franchisor Assistance
PuroSystems provides comprehensive assistance to its franchisees. Before opening, PuroClean offers initial training at its PuroClean Academy, supplies proprietary manuals (electronically or in print), and provides trade and operating procedures. It also sets standards for vehicles, equipment, and inventory, and for conversion franchisees, inventories their existing assets to ensure compliance. After opening, PuroClean offers continuous support, including the right to use its trademarks, ongoing technical and support information via phone and online platforms, and consulting services for both marketing and advertising efforts.
Initial Training Hours
116
Training Location
Tamarac, FL
Ongoing Support
After opening, PuroClean franchisees receive ongoing support through the use of PuroSystems' trademarks and copyrighted materials. PuroSystems also provides continuous technical and operational information via telephone, internet, and other technologies, as well as consulting for marketing and advertising. Franchisees are required to attend an annual international convention and may be offered optional training programs for a fee. Additionally, PuroClean may offer a five-day mentoring program with an experienced franchisee and up to two days of field training, typically conducted virtually.
Franchise Requirements
Ideal Candidate Profile
PuroClean does not require franchisees to have any specific prior experience to operate a PuroClean business. However, PuroSystems seeks franchisees who will be actively involved in the business. If the franchisee is an individual, they must exclusively and directly supervise the business for at least 40 hours per week and dedicate full-time effort to outside sales, or hire an experienced outside salesperson. If the franchisee is a corporation or partnership, one of the equity owners or partners must exclusively and directly supervise the business from its premises for at least 40 hours each business week.
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
2
Territory Size Requirements
PuroClean assigns a Protected Office Location (POL) which is a specific geographic area with a population generally up to 100,000 people. Additionally, a non-exclusive "Halo" territory may be assigned, typically covering a population of up to 150,000 people, though the franchisee's office cannot be located within the Halo territory.
Staffing Notes
PuroClean mandates that the franchisee, or an equity owner/partner, actively manages the business full-time (at least 40 hours per week) and either directly handles all outside sales or hires an experienced salesperson for this role. For franchisees with multiple locations, a fully trained manager can oversee additional businesses. All technical and sales employees must wear standard PuroClean uniforms.