Recurring revenue, low owner time… but priced like a finished product.
This commercial cleaning franchise is listed at $1.5M, generating about $1.19M in revenue and $416K in cash flow.
It’s positioned as a semi-absentee business with recurring contracts and only ~10–15 hours per week from the owner.
On the surface, this looks like a clean, passive income play.
But the numbers tell a more balanced story.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $194K per year.
That’s solid — but not huge for a $1.5M deal.
What Works
There are some real positives here.
- Recurring revenue: Contract-based B2B clients.
- Decent margin: ~35% in line with industry.
- Semi-absentee: Owner only ~10–15 hours/week.
- Low overhead: Minimal facilities and assets.
This is a stable, systemized operation.
Where It Breaks
You’re paying for that stability.
- Premium valuation: 3.61x vs ~2.4x industry average.
- Average returns: ~$194K on $1.5M price.
- No major upside baked in
- DSCR is fine - not exceptional
This is priced like a polished, low-effort asset.
The Franchise Tradeoff
This is where most buyers underestimate the impact.
- Less control: Pricing, branding, operations.
- Ongoing fees: Royalties and system costs.
- Approval required: You don’t fully own the playbook.
- Limited flexibility: Harder to optimize aggressively.
You’re buying into a system — not building your own.
The Real Insight
This deal isn’t cheap because it’s passive.
It’s expensive because it’s passive.
You’re trading upside for convenience.
What This Really Is
A stable, low-touch business at a premium price.
- Predictable revenue
- Lower involvement
- But limited upside
It works — but you’re paying for the simplicity.
BizHub Verdict
This deal scores a 6.9 / 10.
Stable and recurring — but you’re paying a premium for reduced control and lower upside.
Good if you want hands-off… not great if you want returns.
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