JDOG CARPET CLEANING & FLOOR CARE

Item 7 outlines a relatively accessible entry with total investment from $42,909 to $206,447, led by a $35,000 franchise fee. Ongoing fees are tiered fixed royalties of $400 to $2,000 monthly based on territory size and tenure, notably without marketing fund or technology contributions—lower than many cleaning peers charging 6-8% royalties plus 2% ad fees. Exclusive to veterans, military families, and active duty, it leverages JDog University training for residential/commercial carpet and floor care in territories up to 25-mile radius serving 220,000 population. No Item 19 means no validated revenue or profit figures, a red flag for data-driven investors as it obscures average unit performance amid DIY competition and independents.

System health shows promise with locations jumping from 12 in 2023 to 17 in 2024 (+42% growth) and 14 projected new units, signaling expansion since franchising began in 2019 from Berwyn, PA headquarters. However, 12 terminations and 2 transfers on just 17 units indicate high early churn—over 70% turnover rate—potentially from veteran operators facing ramp-up challenges in a low-barrier industry. Six SBA loans averaging $131,667 suggest accessible financing but warrant checking default rates. For military-affiliated investors valuing mission-driven brands, the low fees and growth trajectory are compelling if churn stabilizes; otherwise, risk outweighs the upside in this nascent system.