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Vanguard Cleaning Systems
Vanguard Cleaning Systems, Inc. offers master franchises to qualified entities acting as subfranchisors, who recruit, support, and sell subfranchises to independent businesses providing commercial janitorial and building/facilities maintenance services under the Vanguard Cleaning Systems marks and proprietary system. Subfranchisors handle marketing, account acquisition, billing, collections, training, and compliance enforcement within a defined development area. The target market includes owners and operators of business and professional offices, as well as commercial, industrial, hospitality, and medical facilities.
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Franchise Costs
5% royalty + 0.5% business development fee
Financial Performance
Item 19 Financial Performance
Data Based On: 43 Area Franchise Businesses in operation during the full 12-month period (January 1, 2025 - December 31, 2025).
* Overall average gross revenue ($5,744,512) was taken directly from the 'AVERAGE ANNUAL GROSS CASH COLLECTED FOR CALENDAR YEAR 2025' table. This value was verified by calculating a weighted average from the quartile data: (11 units × $9,926,763 + 10 units × $6,606,045 + 10 units × $4,781,635 + 12 units × $1,995,234) / 43 total units = $5,744,511.65. Best guess profit range was estimated based on 'Contract Fees' described in Note 1. Contract Fees average 20.5% of Gross Cash Collected, with a high-low range of 15.3% to 31%. These fees are stated as deductions from Gross Cash Collected. Therefore, the profit remaining for the franchisee, before their own operational costs, is 100% minus the Contract Fees percentage. - High profit estimate (low fees): $5,744,512 × (1 - 0.153) = $4,865,601.664 - Low profit estimate (high fees): $5,744,512 × (1 - 0.31) = $3,963,713.28
Extracted Item 19 Section
Avg. Revenue: $5,744,512
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How Vanguard Cleaning Systems Compares
Key Insights
- Higher investment than 81% of Business Services franchises
- Lower than average SBA loan default rate in Business Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Vanguard Cleaning Systems Current | $165K – $473K | $100K | 5.0% | 48 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 197 franchises | $121K – $289K | $46K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 197 Business Services franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for Vanguard Cleaning Systems franchisees (2017 – 2017)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
1 SBA loans on record
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Due Diligence
Litigation (Item 3)
Two class action lawsuits by unit franchisees alleging misclassification as independent contractors rather than employees, resulting in wage and labor law violations (one pending in California filed 2020; one concluded via settlement in Massachusetts filed 2015).
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Frequently Asked Questions
The total initial investment to open a Vanguard Cleaning Systems franchise ranges from $164,961 to $472,556. This includes a franchise fee of $100,000. Ongoing royalty fees are 5.0% of gross sales.
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