Both questions come up on a pressure washing forum. In one 2026 thread, a would-be buyer described a deal with about $30,000 in initial fees and 12% of revenue going to royalties and a marketing fund, backed by only a few jobs’ worth of numbers. In another, a buyer weighing an established washing company noted that its customers weren’t under contract.

If it’s a franchise: read the FDD first

The FTC’s Franchise Rule says you must get the Franchise Disclosure Document (FDD) at least 14 calendar days before you sign a binding agreement or pay the franchisor or an affiliate. One reply in that 2026 thread mentioned a 30-day cooling-off period; the federal rule’s number is 14 calendar days. If the franchisor materially changes the agreement on its own, you get the revised version at least 7 calendar days before you sign.

The FTC suggests reading all 23 numbered Items. These matter most for a washing business:

FDD Item What it covers Question to ask about a washing franchise
3 and 4 Litigation and bankruptcy history Does the franchisor face many claims, or sue its own franchisees?
5, 6 and 7 Initial fees, other fees such as royalties and ad funds, estimated initial investment Does the investment include a rig, trailer and chemicals, or only the name and training?
11 Training, advertising and franchisor help How much of the ad fund is spent in your area?
12 Territory Is your territory exclusive, and can the franchisor sell into it online?
17 Renewal, termination, transfer, non-compete Could you keep washing houses nearby if you leave?
19 Financial performance representations Is there any earnings claim at all, and what is it based on?
20 Outlets opened, closed and transferred; current and former franchisee contacts How many owners left last year?
21 Audited financial statements Does the franchisor earn more from royalties or from selling new franchises?

Royalties come off the top

The FTC warns that royalties may be a percentage of your gross income, and that you typically must pay them even when you’re losing money. Item 7 must also estimate “additional funds” for an initial period, which the rule says should be at least three months or a reasonable period for the industry. At a combined 12%, every $1,000 job sends $120 to the franchisor before you pay for fuel, chemicals, insurance or a helper. Check that against your own cost floor with our pricing guide.

Earnings claims belong in Item 19

The rule doesn’t require a franchisor to share earnings figures. If it makes any claim about sales, income or profit, the claim must sit in Item 19 and have a reasonable basis. The franchisor must give you written substantiation if you ask. The FTC also notes that gross sales say little about profit, and that a few very successful outlets can inflate an average. A handful of good jobs is a sample, not a year of results.

Call the people in Item 20

Item 20 must list current franchisees (or those in and near your state, at least 100), plus anyone who left the system in the last fiscal year, with contact details. The FTC says talking to them may be the most reliable way to verify the franchisor’s claims. It suggests calling owners just past their first year and some at five years, and asking about their total investment and whether they’ve broken even.

If it’s an existing route: check what actually transfers

Buying an independent owner’s route isn’t buying a franchise, so there’s no FDD to read. The SBA’s guide to buying a business is the closest checklist. It says to ask about contracts, leases, existing cash flow and inventory, and to get licenses and permits from the seller or apply for them yourself. If you soft wash, our soft wash licensing guide covers whether a pesticide license applies.

  • Revenue proof. The SBA lists tax returns and financial statements among the documents to review with an accountant and an attorney. Ask for returns, not just a summary.
  • Customers. Route customers may have no contracts, like the forum example. Ask how many came back last year, and whether any are on maintenance plans. For commercial accounts, read whether written agreements can pass to a new owner.
  • Equipment. Ask for engine and pump hours, service records and a look at the pump oil. The SBA names a tangible-assets method that values a business by what it owns.
  • Workers. If helpers come with the deal, settle how they’ll be paid; our first-helper guide covers employee or contractor.
  • Seller help. Put any training period or promise not to compete in the written sale agreement your attorney reviews.

Compare the asking price with starting fresh; our startup guide prices a basic rig new.

Where to check, and who to ask

Some states regulate franchise sales on top of the FTC rule. Washington, for example, requires franchisors to register before offering franchises there unless an exemption applies, and its Division of Securities invites buyers to check whether a particular franchise has filed. The SBA keeps a Franchise Directory of brands eligible for SBA financing, but says a listing isn’t an endorsement.

Both agencies suggest an accountant and an attorney, ideally one experienced in franchise law, before you sign anything. For how we source pages like this one, see our methodology.

Sources