Commercial cleaning franchise
Established Commercial Cleaning Franchise
Published June 2, 2026 · Dallas County, TX
Deal snapshot
Asking price
$800,000
Revenue
$950,000
Cash flow / SDE
$400,000
Multiple
2.00×
Location
Dallas County, TX
Real estate
—
Verdict
At 2.0x stated SDE, the price is not the main issue; the disclosure gap is. Buyer should verify earnings quality, franchise obligations, customer concentration, staffing model, and owner dependence before relying on the stated cash flow.
Deal at a glance
Top strength
2.0x stated SDE
Biggest risk
Sparse public disclosure
Next step
Request tax returns and contracts
Best suited for
Good fit
- Operator with B2B service experience
- Buyer comfortable managing field labor
- Franchise resale buyer
- Local owner-operator
Poor fit
- Absentee-first buyer
- Buyer avoiding labor-intensive businesses
- Buyer unwilling to complete franchise diligence
Key risk flags
Earnings Quality
The stated SDE requires confirmation through tax returns, P&Ls, bank statements, and add-back support.
Customer Concentration
Customer mix, largest accounts, contract length, and churn are not disclosed.
Franchise Obligations
Royalties, marketing fees, transfer fees, territory rights, and approval requirements require verification.
Staffing Model
Employee versus contractor structure is unclear and may affect margins, compliance, and service quality.
Owner Dependence
The listing does not disclose the seller's role in sales, operations, hiring, or account retention.
Contract Pricing
Cleaning contracts may face labor inflation if pricing escalation terms are weak or absent.
Green flags and red flags
Green flags
- 1
Stated SDE Coverage
Stated cash flow of $400,000 suggests room for financing review if verified.
- 2
Repeat Service Category
Commercial cleaning may include recurring B2B work, but contracts must be reviewed.
- 3
Franchise Structure
A franchise may provide systems and brand support, subject to franchisor confirmation.
- 4
Understandable Operations. Cleaning operations are generally easier to diligence than highly technical service businesses.
Red flags
- 1
Limited Detail
The public listing provides little operating detail beyond headline financials.
- 2
Undisclosed Contracts
Contract terms, renewal timing, pricing, and assignability are not shown.
- 3
Unknown Concentration
A few large accounts could materially affect revenue if lost after closing.
- 4
Unknown Labor Exposure
Wage rates, overtime, workers' compensation, insurance, and turnover are not disclosed.
- 5
Sale Rationale Missing
The seller's reason for sale is not provided in the supplied listing text.
Questions to ask seller
- 1)
Financials
Can you provide three years of tax returns, monthly P&Ls, bank statements, and SDE add-back support?
- 2)
Customers
What percentage of revenue comes from the top five customers, and what are their renewal dates?
- 3)
Customers
Are customer contracts assignable to a buyer, or do they require consent after closing?
- 4)
Operations
How many workers are employees versus contractors, and what roles does the owner personally perform?
- 5)
Franchise
What royalties, marketing fees, transfer fees, training requirements, and approval steps apply?
- 6)
Legal
Are there any customer disputes, labor claims, insurance claims, or compliance issues?
- 7)
Financing
Has the seller or broker discussed SBA eligibility with lenders for this specific franchise resale?
Industry-specific diligence
Contract Review
Verify term length, termination rights, renewal history, price escalation clauses, and assignment provisions.
Account Churn
Review lost customers by month and reason for cancellation over at least three years.
Labor Compliance
Confirm classification, payroll taxes, overtime practices, background checks, and workers' compensation coverage.
Route Economics
Analyze job-level gross margins by customer, crew, location, travel time, and cleaning frequency.
Franchise Documents
Review the franchise agreement, FDD, territory rights, transfer restrictions, and required post-closing fees.
Insurance Requirements
Verify general liability, bonding, auto, umbrella, and customer-specific insurance obligations.
Owner Transition
Confirm whether customer relationships, bidding, quality control, and staffing depend on the seller.
Source: BizBuySell
Analysis date: June 2, 2026
Illustrative analysis only — verify with seller, broker, lender, attorney, and CPA. Not an offer to buy or sell any business.
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