PuroClean website states - "PuroClean, a fire and water damage restoration company, as well as a mold and mildew removal compan yalso offers biohazard cleanup services. Serving residential and commercial property owners in the United States and Canada, PuroClean Franchisees help families and businesses overcome the trauma of property damage and loss through responsiveness, exceptional restoration service and compassion.

Our "rescue"work ethic has earned PuroClean the reputation of being known as “The Paramedics of Property Damage™". A Paramedic is a first responder, an authority that brings calm and confidence, stopping further harm, administering emergency on-site treatment, and stabilizing a situation to allow for subsequent professional aid and assistance when required.

PuroClean is the best restoration franchise in both emergency property services and in the communities we serve. Property damage occurs daily in every city across the country. Property owners file claims with their insurance companies who then refer and pay a professional restoration company, such as PuroClean, to restore and clean up the damage. More than 50,000 water losses occur per day in the United States, not to mention the $21.6 million lost to fire damage every day. "

JOIN THE PROFITABLE, RECESSION-RESISTANT INSURANCE RESTORATION INDUSTRY WITH DELTA DISASTER SERVICES


Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.

Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “Delta Disaster Services ”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.

As a Delta Disaster Services franchisee you get access to proprietary scalable processes to meet second year gross minimums of $1million, while servicing both commercial and residential customers with water, fire, and environmental losses.

Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.

PuroClean VS Delta Comparison

  Delta Disaster, Inc. PuroClean
Number of locations (US) 8 197
Startup Costs $162,755 - $332,220 $160,755 - $182,780
Territories open limited
Initial Franchise Fee $45,000 $50,000
Supplies, Equipment and Inventory Purchase: $27,600 - $42,500 Purchasing Computer System: $3,500
PuroClean does not administer reconstruction services, hence limiting franchisees earning potential. There is a very limited number of territories available.

DELTA DISASTER FEES

Royalty

For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty. 

For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.

Paid by electronic funds transfer on the sixth day of each month for the preceding month.

Technology Support Fee

$299, payable monthly by electronic funds transfer.

The purpose of the technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.

Warranty Fund Contribution

1% of Gross Revenue, Payable monthly by electronic funds transfer.

Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers. The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual. We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.

Individual Advertising Expense

2% of Gross Revenue, payable monthly.

Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.

National Marketing Fee

1% of Gross Revenue, Payable monthly by electronic funds transfer.

You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% of Gross Revenue for the previous month. If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.

Successor Franchise Fee

10% ofthe then-current Initial Franchise Fee, payable at the time you sign the Successor Franchise Agreement.

Estimating Software

Xactimate software SI 13 to $160 per month per license.

In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business. This fee could decrease as your number of software licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.

Software License Fees

Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.

You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation of your Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.

Technology Maintenance

$500-$1,500 per computer workstation

We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.

PUROCLEAN DISASTER FEES

Royalty

Gross Receipts means all revenue and income of every kind relating to the the prior month operation of the Franchise Business (including deposits and interest and anyrevenue or income you receive from the sale of supplies, services or materials) and income derived from the direct or indirect use of the Proprietary Marks. Does not include taxes collected by the Franchise Business on behalf of the government. 

On or before the 8th day of each month duringthe term ofthe FranchiseAgreement, you will submit to us a royalty report (in the form PuroClean prescribes) and pay us a royalty fee (the "Royalty Fee") as calculated below based upon your Gross Receipts during the preceding month. 

At any time during any calendar year, if the Royalty Fees and Minimum Royalty Fees paid by Franchisee are equal to or greater than the total Minimum Royalty Fees payable forthat calendar year, then no further Minimum Royalty Fee would be due for the balance of that calendar year. Once a Royalty Fee or Minimum Royalty Fee is paid, it is neither refundable nor creditable to any future or past fees owed. So long as the Franchise Business is opened within 60 days of signing this Agreement and there is no default of this Agreement during the first year, Minimum Royalty Fees for the first three months of this Agreement are waived (there is no waiver if this Agreement is signed as a renewal or transfer). Royalty Fees are not waived and must be paid in a timely manner.

Optional Training Program Fee

If you attend an optional program, course, or seminar, PuroClean may charge you a fee.It is paid before training. PuroClean may charge each individual a fee for attending any optional or additionaltraining seminars. If the seminar is held away from the Florida training center ("PuroClean Academy"), the fee will be determined by dividing the expenses (including salaries) Puroclean incurs to travel to and stay at the site of the seminar by the number of seminar attendees. If, however, specific sales and marketing training is included in the seminar training, our training expenses may be paid out of the Marketing Fees or may be paid by you. 

Local Advertising

You must spend at least 2% of your monthly Gross Receipts on approved and documented local advertising and promotíonal activities which include but are not limited to direct-mail, list acquisition, trade advertising, continuing education courses for agents spent for the direct benefit of your franchise. Expenditures for wages and referral fees will not count toward your local advertising requirements. You must spend at least 2% of your monthly Gross Receipts on approved and In addition, you must maintain (at your sole expense) a competitive advertising program that meets our requirements and specifications as outlined more fully in the proprietary Manuals. We may designate a local or regional advertising cooperative and require you to contribute to andparticipate in the advertising cooperative. Each franchise business, including any company­ or affiliate-owned businesses, will be a member of the advertising cooperative. Each franchise or company-owned business will have one vote per business.

Annual National Convention Registration Fee

PuroClean has the right but not the obligation to hold an Annual National Convention ("Convention"). If PuroClean does hold a Convention you must attend and pay us a registration fee. The registration fee for their last Convention was $495 ($395for early registration), but they have the right to change the registration fee. The registration fee does not include your costs to attend the Convention such as transportation, lodging and meals. The registration fee and three nights of hotel accommodations will be collected by means of ACH 30 days prior to the Convention. They estimate that the total charge will range from $1,315 to $1,605.

Liquidated Damages

Greater of $100,000 or the product of the monthly average of the sum of the Royalty and Marketing Fees accrued under the Franchise Agreementduring the 12 full calendar months of the operation of the Franchise Business preceding termination multiplied by the lesser of60 or the number of months remaining under the Initial Term. Payment of liquidated damages is due if the Franchise Agreement is terminated due to your default or you otherwise prematurely terminate the Franchise Agreement.

Optional National Call Center Vendor Program Participation Fees

$39 to $59 per job lead and $9 turn down/declined work fee, plus costs of additional insurance and credit and criminal background checks. Qualified franchisees that choose to participate in the optional National Call Center (''NCC") Vendor Programs must pay us a participation fee which may range from $39 to $59 per job lead for certain administrative operations performed by the NCC. The NCC participation fees may be adjusted from time-to-time. Additionally, a $9 turn down/declined work fee will be assessed to any participating franchisee that turns down work in any assigned Vendor Program. In addition, participating franchisees must pay for the cost of obtaining and maintaining the minimum insurance requirements, as well as the cost of additional background checks, training, and equipment required under the NCC Participation Guidelines and Program Agreement.