The Cleaning Authority Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$76,600 - $147,100
Franchise Fee
$10,000
Total US Locations
236
Business Summary
The Cleaning Authority franchise primarily offers cleaning services for residential homes, functioning similarly to a maid service. Additionally, The Cleaning Authority may provide various other cleaning services, such as carpet cleaning, window cleaning, furniture cleaning, and cleaning for light commercial properties and businesses.
Corporate History
The Cleaning Authority brand began its franchising operations in 1996 through its predecessors. The most recent predecessor, The Cleaning Authority, LLC (TCA), offered franchises from September 2010 until May 14, 2021. The current franchisor entity, The Cleaning Authority Franchising SPE LLC (TCA-SPE), was organized on March 24, 2021, as part of a securitization transaction and officially began offering The Cleaning Authority franchises on May 17, 2021. The ultimate majority owner of TCA-SPE is a fund advised by Apax Partners, LLP.
Financial Overview
Investment Range
$76,600 - $147,100
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$20,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$4,350
Equipment Costs (High)
$6,850
Working Capital
$28,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Cleaning Authority Franchising SPE LLC's financial obligations are absolutely and unconditionally guaranteed by its parent company, AB Assetco LLC. The independent auditors for AB Assetco LLC did not identify any conditions or events that raise substantial doubt about its ability to continue as a going concern. In 2024, AB Assetco LLC reported a net loss of $14,362 thousand, following net income in 2022 and 2023. Authority Brands Inc., the indirect parent, has reported net losses for the past three fiscal years, with a net loss of $104,486 thousand in 2024.
Financing Details
The Cleaning Authority may offer financing for up to 75% of the combined initial Franchise Fee and Territory Fee. This option is not available for transactions involving brokers or third-party referral sources. If a franchisee opts for financing, the remaining balance can be paid over a maximum of 36 monthly installments, accruing interest at a rate of 12% per annum. Payments commence on the first day of the month following the first full month after the Franchise Agreement is signed, and prepayments can be made without penalty. To secure the financing, franchisees must sign a Promissory Note, Guaranty, and Security Agreement, granting The Cleaning Authority a security interest in the assets of the Franchised Business. Payments are required via Automated Clearing House (ACH) or electronic funds transfer. A default on the Promissory Note is considered a default on the Franchise Agreement, potentially leading to its termination. The Cleaning Authority does not provide any other direct or indirect financing and does not guarantee any third-party financial obligations of franchisees.
Performance Metrics
Total US Locations
236
Franchised Units
233
Corporate Units
3
Avg Square Footage
950
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
The Cleaning Authority Franchising SPE LLC is currently involved in two pending lawsuits. One case, filed in October 2023 by the Independent Association of Cleaning Authority Franchisees (TCAF), alleges that The Cleaning Authority did not adequately disclose TCAF contact information, inhibited franchisees from associating with TCAF, denied information on marketing program revenues/expenditures, charged above-market rates for services, and misused marketing funds. The Cleaning Authority denies these allegations. A motion to compel arbitration for individual franchisee claims was granted in February 2024, requiring those claims to be pursued in individual arbitrations, and TCAF has appealed this decision. The second case, filed in January 2024 by The Cleaning Authority against a former franchisee, Mike Cavallaro, concerns a breach of the Franchise Agreement due to unpaid fees and violation of non-competition clauses. The former franchisee has filed counterclaims, alleging misrepresentations by The Cleaning Authority's predecessor, which The Cleaning Authority denies. The Cleaning Authority has moved for summary judgment in this case.
Bankruptcy History
The Cleaning Authority has no bankruptcy information required to be disclosed.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew, The Cleaning Authority franchisees must provide written notice of their desire to renew between 6 and 12 months before the agreement expires. They must be in good standing, meaning no defaults under any agreements with The Cleaning Authority, its affiliates, or approved vendors, and must have a good record of customer service and Brand Standards compliance, without any ongoing litigation. Franchisees are required to sign The Cleaning Authority's then-current franchise agreement, which may have new or increased fees and different terms. They must also pay a renewal fee and sign a general release of claims against The Cleaning Authority. Additional conditions include meeting any required training, demonstrating the right to remain in possession of the approved location for the renewal term, and remodeling or upgrading their vehicles, premises, and computer systems to meet The Cleaning Authority's then-current Brand Standards.
Training & Support Program
Franchisor Assistance
The Cleaning Authority provides comprehensive support both before and after a franchisee opens their business. Before opening, The Cleaning Authority provides initial training to the franchisee and key management, assists with ordering required equipment, supplies, and technology, provides access to the Operations Manual and a Franchisee Portal, helps set up a Call Center account, and offers information on its proprietary TCA IQ software. The Cleaning Authority also initiates local marketing services and provides opening support, with additional support available for a fee. Ongoing support includes administering the Local Marketing Program and making a Call Center available for customer calls. The Cleaning Authority develops and maintains Brand Standards, manages the Franchisee Portal, and conducts Brand Standards assessments. It also manages the Brand Fund and provides creative marketing materials, reviews franchisee advertising plans, and manages social media accounts that promote the brand. Additionally, The Cleaning Authority monitors and manages the customer warranty/satisfaction guarantee program and handles contracts and relationships with Key Accounts. Franchisees may also gain access to an independent employment law hotline.
Initial Training Hours
83
Training Location
Columbia, Maryland
Ongoing Support
The Cleaning Authority provides continuous support to its franchisees through various channels. This includes administering the Local Marketing Program and making a Call Center available for customer calls (for a fee). Franchisees also have access to additional required and optional training programs, and The Cleaning Authority develops and maintains Brand Standards, managing a Franchisee Portal for communications and resources. The franchisor notifies franchisees of approved vendors and product specifications, conducts Brand Standards assessments, and manages the Brand Fund, which includes providing creative marketing materials. The Cleaning Authority reviews franchisee advertising plans, manages social media accounts related to the brand, monitors and manages the customer warranty/satisfaction guarantee program, and handles contracts with Key Accounts. Additionally, franchisees may be provided access to an independent employment law hotline.
Franchise Requirements
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
protected
Territory Size Requirements
The Cleaning Authority territories are defined by zip codes and are primarily based on the number of "Designated Households." For Enterprise Markets, territories generally contain between 30,000 and 60,000 Designated Households, while Hometown Markets have between 15,000 and 29,999 Designated Households. A "Designated Household" is a residence with an estimated annual gross income of at least $70,000, or $85,000 in California.
Staffing Notes
The Cleaning Authority franchisees are required to maintain staffing levels adequate to meet the Brand Standards. Franchisees hold sole responsibility for all employment decisions and functions, including recruiting, screening, hiring, firing, scheduling, and compensation of their employees. This also covers training (beyond initial franchisor training), benefits, wage and hour compliance, recordkeeping, supervision, safety, security, and discipline. The Cleaning Authority may require initial and periodic drug testing and background checks for employees. Franchisees must clearly inform all workers that they, not The Cleaning Authority, are the employer.