About DUCTZ Franchise
DUCTZ is a home and commercial services franchise specializing in air duct cleaning, dryer vent cleaning, and HVAC restoration.
Backed by BELFOR Franchise Group, LLC, the brand has been franchising since 2004 and has established itself as a leader in indoor air quality services.
The franchise fee starts at $49,900 for a full service franchise serving a territory of up to 200,000 households, with a dryer vent only option available starting at $34,900.
DUCTZ Franchise Cost & Fees
Minimum Investment
$144K
Average Investment
$204K
Maximum Investment
$263K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,900 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Sales, if established | National brand fund |
| Total Investment Range | $143,828 – $263,378 | Includes build-out, inventory, working capital |
The investment range of $144K–$263K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Sales) and marketing fee (Up to 1% of Gross Sales, if established) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $19,960 | $74,900 |
| Initial Package Fee (Note 2) | $38,414 | $38,414 |
| Hand tools, miscellaneous supplies | $0 | $700 |
| Food and lodging while training, not including the cost of your transportation (Note 3) | $1,200 | $3,000 |
| Vehicle with up-fitting (Note 4) | $72,200 | $82,200 |
| COILZ Trailer with up-fitting and Power Washer (Note 4) | $0 | $23,500 |
| Full time technician for 3 months (Note 5) | $0 | $7,200 |
| Computer System (Note 6) | $0 | $1,500 |
| QuickBooks Online (Note 7) | $84 | $225 |
| DSL, cable or satellite high speed Internet, anti-virus software and electronic mail | $270 | $475 |
| Insurance for the first 3 months (Note 8) | $1,200 | $3,500 |
| Business Telephone (Note 9) | $0 | $144 |
| NADCA Annual Membership Dues ASCS & VMT Training and Certification (Note 10) | $0 | $1,620 |
| Real estate or storage for the first 3 months (Note 11) | $0 | $4,500 |
| Marketing (Note 12) | $1,500 | $1,500 |
| Additional funds for the first 3 months (Note 13) | $9,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $9,900 if transferred to a new DUCTZ franchisee, or $3,000 if transferred to a current DUCTZ franchisee |
| Renewal Fee | 20% of the then current Initial Franchise Fee |
| Technology Fee | $45 per week |
| Audit Fee | $2,500-$3,500 |
| Additional Training or Assistance Hosting Fee | $50 - $500 per person |
| Annual Convention, Regional Meetings and/or Additional Training | (a) $1,000 max. per person to attend the Annual Convention, and (b) $0 - $200 per person per event for Regional Meetings and/or Additional Training |
| Transfer of Corporation Fee | $500 |
| Broker - Resale | $24,000 - $30,000 |
| Outstanding Royalties, Support Fees, and other fees of Transferor | Will vary under circumstances |
| Late Report Fee | $20 per week |
| Late Payment Fee | 5% of amount due or $50 per week, whichever is greater |
| Administrative Fee | $500 per transaction |
| Collection Fee | up to 10% of gross amounts collected on your behalf |
| Non-Sufficient Funds (NSF) Fee | $33 per NSF |
| Convention Non-Attendance Fee | $1,000 |
| Improper Marketing or Service Fee | up to $10,000 |
| Insurance | Cost of insurance |
| Interest Fee | 18% per annum or the maximum permitted by law |
| Indemnification | Will vary under circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Optional: Web Marketing Services SEO, PPC, or Social Media Management | $150 per setup, $100 to $5,500 per month, per program |
| Optional: Review Tracking Service | $27.50 per location, per month |
| Optional Ongoing Digital Products & Services (w/o SEO) | $1,329 per location Monthly |
| Optional Ongoing Digital Products & Services (with SEO) | $1,929 per location Monthly |
| Optional Upgrade to RingCentral Premium | $32.99 Monthly |
| NORA Fee | up to 3% of Gross Sales |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 7 days for Business Manager and Technical Operations Training, plus Jumpstart Initial Training within one month of signing. |
| Classroom Training | 34.75 |
| On-the-Job Training | 15.75 |
| Training Location | Franchisor's headquarters, the BFG training center, or another designated location (Ann Arbor, MI). |
| Additional Training | The Managing Owner or Designated General Manager must attend the Annual Convention at least once every two years and periodic refresher training courses and conferences at designated times and locations, for which fees may be charged. These events may occur outside the franchisee's home state, with past locations including Florida, Texas, and Michigan. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A Designated Office Territory (DOT) generally includes up to 200,000 households, with a maximum of 300,000 households, and a minimum of 100 potential Protected Partners. The Regional Service Area (RSA) is a geographical area within a 30-mile radius from the DOT. |
| Description | Each DUCTZ Business is awarded a geographic territory comprising a Designated Office Territory (DOT) for advertising and soliciting business, and a Regional Service Area (RSA) where services may be performed under certain conditions. While the DOT offers protected advertising and solicitation rights against other Full Service DUCTZ Businesses or Company Stores (with exceptions), the RSA does not grant ownership rights, and advertising is restricted. Dryer Vent Service Businesses may face competition from Full Service Businesses in their DOT. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional, consecutive terms of 10 years each |
| Renewal Fee | 20% of the then current Initial Franchise Fee |
| Renewal Conditions | To renew, the franchisee must be in substantial compliance with the Franchise Agreement, not have certain repeated defaults, provide timely notice of intent to renew, sign the then-current franchise agreement (which may have different terms), upgrade and remodel the business as necessary, sign a general release (subject to change), and pay the renewal fee. |
| Transfer Fee | $9,900 if transferred to a new DUCTZ franchisee, or $3,000 if transferred to a current DUCTZ franchisee |
| Transfer Conditions | Transfer requires franchisor approval, which will not be unreasonably withheld if conditions are met. These include the franchisee being in full compliance and having paid all monetary obligations, the transferee meeting current franchisor standards (including business experience, aptitude, and financial resources), the transferee not operating a competitive business (unless integrated into the DUCTZ System), the franchisee authorizing release of business information, the transferee signing the then-current franchise agreement for a full term, payment of transfer fees and other outstanding amounts, the transferee completing training, both parties signing a general release (subject to change), franchisor approval of material transfer terms, transferee's financing being subordinate to franchisor payments, specific ownership control if transferred to a wholly-owned company, the business being open and training completed, compliance with post-term obligations, obtaining all required permits/licenses, lessor consent if applicable, compliance with all laws, and the transferee purchasing an Initial Package. |
| Termination for Cause | The franchisor may terminate the agreement with a 15-day cure period for defaults such as failure to pay amounts due, failure to employ a Service Technician or Designated Manager for two consecutive months, non-compliance with laws or regulations, failure to adhere to the Franchise Agreement or Manuals, vehicle payment defaults, use of unapproved products, failure to provide reports, inconsistent customer service, servicing outside the territory without permission, failure to endorse payments, failure to maintain operating hours, insufficient supervision or staffing, failure to maintain quality controls, conduct adversely affecting the brand, or failure to maintain required licenses/certifications. Immediate termination without cure is possible for bankruptcy, unauthorized transfers, failure to complete training or open the business within specified times, material misrepresentation, repeated similar defaults, felony conviction, repeated understatement of royalty, dishonest conduct, confidentiality violations, abandonment, failure to maintain insurance, failure to attend annual convention or refresher training, failure to train Service Technician, termination of other franchise agreements, repeated defaults of any type, material breach of other agreements with affiliates, misuse of Marks or Confidential Information, safety/sanitation violations, violation of in-term non-compete, liens not released, insolvency, purchasing from unapproved suppliers, misuse of software, failure to comply with anti-terrorism provisions, personal use of business assets, or repeated insufficient funds/failure to achieve minimum sales. |
| Non-Compete Period | 18 months |
| Non-Compete Details | For 18 months after expiration or termination, the franchisee, owners, and Designated Manager are prohibited from engaging in any air HVAC cleaning and restoration services, soliciting or diverting customers of the former DUCTZ Business to competitors, or engaging in any business relationship with former customers within: (i) the former Territory; (ii) the Territories of any DUCTZ franchisees, Company Stores, or other DUCTZ business operators as of the termination/expiration date; or (iii) a 50-mile radius from the former Territory's boundary. This is subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner, who must be an owner of the franchisee entity, or an approved Designated Manager, is required to continuously exert full-time best efforts to manage, promote, and enhance the DUCTZ Business. They must not engage in any other conflicting business or activity without prior written permission. Before commencing operations, the franchisee must employ at least one person who has completed the Business Manager and Technical Operations Training and a full-time experienced Service Technician. All Service Technicians, Designated Managers, and sales/account management employees must sign non-disclosure and confidentiality agreements. |
| Required Suppliers | Franchisees must purchase the Initial Package (including HVAC equipment, tools, safety supplies, marketing materials, NADCA membership/training, Kick Start Marketing, CareerPlug Pro, and a convention allowance) and the proprietary COILZ Trailer from the franchisor or designated vendors. All vehicles must be leased or purchased through approved suppliers and have authorized vinyl decal packages. Vehicle wraps must be performed by authorized vendors. Franchisees are required to use the franchisor's designated accounting software (currently QuickBooks Online) and an approved email name with "@DUCTZ.com" suffix. A customized website connected to the franchisor's site and managed by its provider is mandatory, as are designated phone models, types, and service providers. |
| Supply Restrictions | All products and materials must meet System standards and specifications for representation of the Marks and require prior written approval from the franchisor, regardless of the supplier. Franchisees are prohibited from redirecting traffic on the customized website or implementing their own website or URL for the DUCTZ Business. The franchisor reserves the right to modify or revoke approval of any products or suppliers. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2021, DUCTZ International, LLC derived $31,015.49 (1.3% of its total revenue of $2,350,178) from required purchases and leases, including COILZ Trailers. In the same year, affiliates BHI and Colman Wolf derived $266,815.00 and $100,798.94, respectively, from the sale of initial equipment, vehicles, and supplies to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer financing for a portion of the Initial Franchise Fee. For Full Service or Dryer Vent Services Franchises, up to 50% of the Initial Franchise Fee can be financed with a minimum 50% down payment. For Conversion Franchises, up to 75% can be financed with a minimum 25% down payment. The term is up to three years with a 10% annual interest rate. A personal guaranty is required as security. Prepayment is allowed without penalty. Default can lead to franchise termination and payment of the full outstanding balance, plus attorneys' fees and court costs. The franchisor is eligible for SBA loan processing assistance. |
DUCTZ Franchise Earnings — Item 19
Average Revenue
$443K
Median Revenue
$330K
Revenue Range
$53K – $1.5M
Sample Size
46 units
Past financial performance does not guarantee future results. Individual results will vary.
DUCTZ Litigation & Risk Flags
Clean Litigation RecordDUCTZ has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DUCTZ System Growth
Total Units
79
Franchised
74
Company-Owned
5
DUCTZ currently operates 74 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 3 | 70 |
| 2020 | 3 | 1 | 72 |
| 2021 | 3 | 1 | 74 |
Transfers: 3 | Closures: 5
State Registrations
Registered in 8 states: MI, CA, IL, MD, MN, NY, ND, WA
Franchisor Financials (Item 21)
Revenue
$2.4M
DUCTZ Franchise — FAQ
The total investment to open a DUCTZ franchise ranges from $143,828 to $263,378, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,900. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DUCTZ charges a royalty fee of 10% of Gross Sales of gross sales, plus a Up to 1% of Gross Sales, if established contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DUCTZ Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DUCTZ to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, DUCTZ franchise owners report average revenue of $443K and median revenue of $330K. This is based on a sample of 46 units. Past performance does not guarantee future results.
DUCTZ has been franchising since 2004. The FDD shows an investment range of $143,828-$263,378, a 10% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,900 and the total investment ranges from $143,828 to $263,378 depending on location size and market. A minimum of $9,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DUCTZ and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DUCTZ or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com