Ductz Franchise Cost, Profit, Failure Rate 2023

Indoor air quality is a theme that has been gaining a lot of attention lately.

After the pandemic, we have all become more aware of the importance of good air quality, and this factor translates into growth for companies that work in this sector.

Air quality devices and systems are becoming more popular in residential and commercial buildings, the demand is always higher, and the air quality sector is becoming a growing opportunity for entrepreneurs.

Ductz Franchise
Ductz Franchise

If you want to enter this market with your business, one of the best chances is offered by the Ductz Franchise.

It’s an indoor air quality systems provider that is open to franchise partnerships. However, the initial investment with them can be rather high.

It is important, therefore, to get well informed about the expenses, the initial investment, and ongoing fees.

We are providing you with all these pieces of information and more in this article. So keep on reading to find out anything you need to know about the Ductz Franchise.


About Ductz Franchise

Ductz Franchise is a company that provides air duct cleaning and maintenance. The demand for this type of service is high and keeps growing.

Air quality systems are being installed in many buildings, whether they are residential or commercial.

The attention towards their quality and maintenance is also growing, and this is a factor that makes the demand for air duct maintenance higher.

The company is also very focused on its franchise program. They are constantly open to new franchise applications, and they provide tons of support for their franchisees.

They don’t require any prior experience: if you know nothing about air duct maintenance, you can still apply for this franchise because they will be teaching you anything you need to know through their training program.


History Of Ductz Franchise

The Ductz Franchise company was established in 2002, and they started franchising two years later, in 2004.

Today, the company still directly owns only one unit; the remaining 80 units are all franchised. This is a sign that the company has focused on its franchise program over the years.

The company also showed a fast-growing rate: during the last 15 years, it opened 80 units in the United States and they are still active and successful.

Compared to other franchise, Ductz Franchise distinguishes itself for the quality of the training they provide to its franchisees.

As we’ve mentioned, they’ve designed a training program that allows anyone, even someone with zero air-duct-maintenance experience, to learn the job and start working in the sector, launching their own business.

The company is also open to franchises in Canada and Puerto Rico.


Ductz Franchise Business Model

Ductz Franchise is an air duct maintenance franchise company. It provides air-duct cleaning and maintenance services, and it is constantly open to franchise applications.

It means that you can submit your application at any moment and become the owner of your own air duct maintenance service company.

Business ModelAir duct maintenance franchise services
Initial Investment$90,000
FranchiseYES
Franchise Fee$50,000
Royalty fee10%
Number of outlets80

How Much Does It Cost To Open A Ductz Franchise?

How Much Does It Cost To Open A Ductz Franchise

When launching a Ductz Franchise business, you need to cover the expenses for setting up your new business and the franchise fee.

Because the business can be home-based, you don’t need to rent a location or set up an office.

You only need to purchase a vehicle and the equipment you’ll need to provide the requested services. 

The franchise fee is $50,000. It makes the initial investment grow to about $90,000.

It seems a huge investment, but popular franchises like this one are often a lot more expensive than this. Ductz Franchise can almost be considered a low-cost franchise.

However, the franchise fee isn’t the only commitment required. There is also a royalty fee that is pretty high because it is 10% of your profits (while most franchises have a 5% to 8% royalty fee or none).


Ductz Franchise: Requirements

The DUCTZ company sets some requirements for their franchisees.

In particular, to buy a DUCTZ franchise, you’ll need to have a minimum of $100,000 in liquid capital and a net worth of $175,000.


Ductz Franchise Revenue & Profit

The revenue and profit of any franchise depend on various factors, including the size of the store, location, management, operational cost, etc.

So on average, a Ductz franchise generates $428,517 in revenue annually.

There is not much information regarding the Dutch franchise financial information. You can get ask for the Fracnchise disclosure document from existing Ductz franchise owners to learn more about the financials of this company.

This is the table representing the annual gross sales of single-territory operations:

Group Of OperatorsSingle-Territory Operations In GroupAverage Annual Gross SalesHighest Annual Gross SalesLowest Annual Gross SalesMedian Annual Gross Sales
Top Third9$813,315$1,425,965$481,005$761,230
Middle Third9$344,556$468,805$260,152$306,387
Bottom Third9$153,294$258,702$75,064$138,667
All27$437,055$1,425,965$75,064$299,823

Failure Rate Of Ductz

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20188472-12
20197270-2
20207072+2

For the Franchised outlets:

  • In 2018, the failure rate was (12)/84×100≈14.29%
  • In 2019, the failure rate was (2)/72×100≈2.78%
  • In 2020, the growth rate was (2)/70×100≈2.85%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018990
2019990
202095-4

For the Company-Owned outlets:

  • In 2018, the failure rate was (0)/9×100≈0.00%
  • In 2019, the failure rate was (0)/9×100≈0.00%
  • In 2020, the failure rate was (4)/9×100≈44.44%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20189381-12
20198179-2
20207977-2

For Total outlets:

  • In 2018, the failure rate was (12)/93×100≈12.90%
  • In 2019, the failure rate was (2)/81×100≈2.47%
  • In 2020, the failure rate was (2)/79×100≈2.53%

According to the above-mentioned data, we can see that the franchised outlets for Ductz declined from 2018 to 2019, showing a failure rate between 14.29% and 2.78%. However, in the year 2020, the company managed to increase its outlets, showing a growth rate of 2.85%.

On the other hand, for company-owned outlets, the failure rate of Ductz was quite high, lying in the range between 0.00% and 44.44% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Ductz franchise has declined in the years 2018-2020, showing a total failure rate between 12.90% and 2.53%.


Ductz Franchise: Training And Support

Ductz provides a lot of training and support to its franchisees. The training begins with a technical-focused class on residential, industrial, and commercial services.

But this is only one side of the training; the other side is made of classes about business management.

There is also a part of the training that focuses on Healthcare certification: since this business deals with air quality, you always want to make sure you respect the rules and regulations about air quality standards. 


Ductz Franchise: Terms Of Agreement

The Ductz franchise doesn’t have standard terms of the agreement. The collaboration between you and your franchisor will last for as long as you pay the royalty fee.


Ductz Franchise: Obligations And Restriction

The obligations and restrictions, in this case, are not given by the company but by the law.

As we’ve mentioned, this activity deals with air quality, so you need to comply with every standard, certification, and regulation about the air quality standards in the state you are operating.


Ductz Franchise: Financial Assistance

Ductz provides some financial assistance to its franchisees. In particular, they can cover 50% of the franchise fees with a funding plan.


Ductz Comparison

CompanyDUCTZKoala Insulation
Founded20022018
Number of Outlets80330
Franchise FeeS50,000S50,000
FranchiseYesYes

Conclusion

DUCTZ Franchise is the ideal franchise business for everyone, even if you don’t have any experience in the air-duct maintenance sector.

The company provides tons of support, both in terms of knowledge and finance. 

The initial investment is rather high, but it’s not among the highest. 


DUCTZ Franchise: FAQs

Is DUCTZ a franchise or chain?

DUCTZ is a franchise, meaning that the company allows you to open your own air-duct maintenance business and exploit its brand name.

Who is the owner of DUCTZ franchise?

Dave Marsh is the current owner of the DUCTZ franchise.

How many DUCTZ businesses are there?

There are more than 80 franchise units active in the United States.

Is the DUCTZ franchise a good investment?

The DUCTZ franchise is a good investment because the demand for the types of services it provides is high and keeps growing.

Is the DUCTZ Franchise worth it?

The DUCTZ franchise is considered a great opportunity because the investment isn’t as high as many other franchises (you don’t need to buy or rent a location, your investment is limited to equipment and a vehicle).

Because the demand for air duct maintenance services is high, you can expect to have a quick and high return on investment.

Where is Ductz Headquartered?

Ductz’s headquarters is located in 731 Fairfield Ct, Ann Arbor, Michigan, 48108, United States.

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