Steri-Clean Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$85,814 - $262,651
Franchise Fee
$40,000
Total US Locations
55
Business Summary
Steri-Clean franchises businesses that specialize in remediation services for properties affected by hoarding and biohazards. Steri-Clean also provides services including air quality monitoring, infection control, disinfection, sanitizing, contents restoration and cleaning, preventative cleaning for microorganisms, pest cleanup and deterrent installation, drug/drug lab/drug paraphernalia decontamination, odor removal, and tear gas cleanup/removal. Steri-Clean System Businesses clean various properties like residences, vehicles, and business facilities.
Corporate History
Steri-Clean, Inc. was established as an Idaho corporation on September 19, 2016, and began offering franchises in January 2017. Its predecessor, also named Steri-Clean, Inc., was a California corporation incorporated on July 26, 2011, and had offered franchises from July 2014 to December 2016. In January 2017, the California predecessor merged into the current Idaho corporation, which continued the business operations of specialized remediation services.
Financial Overview
Investment Range
$85,814 - $262,651
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$80,000
Royalty %
8%
Marketing %
3%
Equipment Costs (Low)
$14,984
Equipment Costs (High)
$82,687
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Steri-Clean has an accumulated deficit and total stockholder's deficit on its balance sheet for both 2023 and 2024. Despite reporting a net income of $68,841 in 2024, the company's accumulated deficit increased, largely due to significant distributions to stockholders. This indicates a negative equity position.
Financing Details
Steri-Clean does not offer any direct or indirect financing options to its franchisees, nor does it guarantee their leases or other financial obligations. Franchisees must arrange their own funding.
Performance Metrics
Total US Locations
55
Franchised Units
55
Corporate Units
0
Avg Square Footage
1,500
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Steri-Clean has been involved in several legal matters. Currently, Steri-Clean is engaged in a pending arbitration case, filed in August 2023, with a former franchisee, Site Remediation Services LLP. The former franchisee alleges breach of contract and seeks money damages, while Steri-Clean has counter-claimed for unlawful termination and breach of contract. In a separate prior action, Steri-Clean reached a post-judgment settlement in March 2023 with Dimattina Holdings, LLC, and individuals, resulting in a payment of $190,000 to Steri-Clean. Another past case involved a lawsuit filed in August 2018 by Rodney Etheridge, a former franchisee, against Steri-Clean and Cory Chalmers, alleging various claims including breach of contract and fraud related to a territory dispute. This matter was settled in March 2019, with Steri-Clean paying $50,000 to Mr. Etheridge and covering the mediator's fee. Additionally, Dimattina Holdings, LLC, had initiated a lawsuit against Steri-Clean and Cory Chalmers in April 2016 for fraudulent inducement and breach of contract, which was compelled to arbitration. In October 2017, the arbitrator in that case ordered Dimattina to pay Steri-Clean approximately $157,454 in damages, plus attorney's fees and arbitration expenses.
Bankruptcy History
Steri-Clean has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Steri-Clean franchise, franchisees must provide 180 days prior written notice to Steri-Clean. They must have fully complied with all terms of their current Franchise Agreement and paid all monetary obligations. Franchisees need to agree in writing to remodel their business, secure the right to occupy their premises for the renewal term, ensure they and their managers have completed required retraining, and sign a general release of any claims against Steri-Clean. Finally, they must sign Steri-Clean's then-current standard Franchise Agreement, which may include different terms, conditions, and fees.
Training & Support Program
Franchisor Assistance
Before opening a Steri-Clean franchise, Steri-Clean grants the right to operate and provides access to its confidential Operations Manual. Steri-Clean reviews and confirms the acceptability of the franchisee's chosen warehouse site and reviews the proposed lease agreement to ensure it meets minimum terms. Steri-Clean also furnishes written specifications for operations, equipment, and suppliers, and provides initial training for the franchisee and their management team. Additionally, Steri-Clean supplies a start-up package of marketing materials, including brochures, business cards, and a trade show display for first-time franchisees. After opening, Steri-Clean offers ongoing assistance by providing information on new developments and improvements to the system. It maintains promotional websites that list the franchisee's business and directs leads to them via toll-free numbers, and operates a central telephone call center. Steri-Clean administers the national marketing fund, provides periodic updates to the Operations Manual, and coordinates ongoing training programs. Franchisees can also receive toll-free telephone, fax, email, or online consultation from Steri-Clean personnel. During the first six months, up to five days of on-site assistance for employee recruitment and operational problem-solving are available, with the franchisee reimbursing travel and living expenses. Steri-Clean also conducts periodic site evaluations, coordinates annual franchisee meetings, negotiates vendor purchasing programs, and reviews and approves promotional and marketing materials.
Initial Training Hours
94
Training Location
Hailey, Idaho or other Franchisor approved location
Ongoing Support
Ongoing support for Steri-Clean franchisees includes providing information on new developments, techniques, and improvements related to the system and operations. Steri-Clean maintains promotional websites that list the franchisee's business in their territory and directs leads to them via toll-free promotional telephone numbers. A central telephone call center is also maintained for all franchised businesses. Steri-Clean administers the national marketing fund and provides periodic updates, revisions, and amendments to the Operations Manual. The franchisor coordinates and conducts periodic training programs for franchisees as deemed necessary. Additionally, upon written request during the first six months of the franchise term, Steri-Clean offers up to five days of on-site assistance to help with employee recruitment, training, and resolving operational problems, with franchisees reimbursing travel, living expenses, and a daily per diem. Steri-Clean personnel are available for toll-free telephone, fax, email, or online consultation on all aspects of the business. Periodic site evaluations are conducted to ensure compliance with system standards, and annual meetings are coordinated for all franchisees. Steri-Clean also negotiates vendor purchasing programs and reviews and approves promotional and marketing materials developed by franchisees.
Franchise Requirements
Ideal Candidate Profile
Steri-Clean seeks franchisees who will designate a 'Designated Principal' owning at least 25% of the equity interest in the franchise. This principal must have the authority to bind the franchisee to agreement obligations and must devote full time and best efforts to managing and operating the Steri-Clean business, overseeing all financial and operational aspects. The Designated Principal, along with any managers, must successfully complete Steri-Clean's initial training program. Neither the franchisee nor the Designated Principal may have had criminal convictions within the past 10 years.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
Steri-Clean does not define its franchise territories by a fixed size, radius, or population number applicable to all locations. Instead, Steri-Clean designates each territory in its sole discretion during the site confirmation process. This designation is based on factors such as local competition, the accessibility of the proposed location, population density, and other demographic characteristics. The specific boundaries and details of a Steri-Clean territory are outlined in a Site Selection Addendum for each franchisee. It is also important to note that Steri-Clean franchisees are granted a non-exclusive territory.
Staffing Notes
Steri-Clean requires the franchised business to be under the direct, on-premises supervision of a fully-trained manager or assistant manager, who must be selected by the franchisee and approved by Steri-Clean. The franchisee, their Designated Principal, and all managers must successfully complete the initial training program. Managers are also required to sign confidentiality and non-competition agreements. Steri-Clean offers on-site assistance during the first six months to coach on employee recruitment and training.