Commercial Kitchen Hood Cleaning and Grease Abatement Business
This article provides a full acquisition and growth blueprint for a commercial kitchen exhaust system cleaning company specializing in NFPA 96-compliant hood cleaning, grease trap services, and fire system inspections. The business services restaurants, university dining halls, hotels, casinos, food production plants, and institutional kitchens across three adjacent metro markets.
The company generates $4.8 million in annual revenue and $925,000 in adjusted EBITDA. The revenue is highly recurring, with 85% generated through annual service agreements with defined cleaning cadences monthly, quarterly, or semi-annually based on fire safety code requirements. Services are performed overnight or early morning and are documented via real-time reporting and digital photo logs to ensure compliance with OSHA and local fire marshal regulations.
Due to its contractual revenue, niche service line, strong cash flow, and ability to expand via franchising or territory development, this business is an excellent SBA 7(a) acquisition target. Buyers can scale through franchise licensing, cross-selling fire protection services, acquiring small operators in rural zones, and leveraging compliance inspection pressure to upsell bundled services.
Proposed SBA 7(a) Deal Structure
The business supports a standard leveraged SBA structure with strong cash flow and seller alignment through subordinated financing:
Purchase Price: $3.7 million (4.0x EBITDA)
SBA Loan: $2.775 million (75%)
Buyer Equity Injection: $370,000 (10%)
Seller Financing (Subordinated): $555,000 (15%) amortized over 6 years, with 12-month interest-only
Incentives and protections:
20% clawback on seller note if top 20% of clients cancel within 6 months post-close
Seller bonus if buyer launches first franchise territory within 12 months
Seller remains for 9 months as technical and compliance advisor
Client Segmentation and Revenue Streams
Customer breakdown:
Restaurant chains (QSR, casual dining): 36%
Hospitality and hotel kitchens: 18%
Universities and school districts: 17%
Industrial and food processing plants: 12%
Hospitals, correctional institutions, and military kitchens: 10%
Event centers, casinos, and stadiums: 7%
Revenue by service line:
Hood and duct cleaning: $2.9M
Grease trap servicing and documentation: $840K
Fan and vent maintenance: $430K
Fire suppression inspections (NFPA 96): $385K
Emergency cleaning and code violation remediation: $245K
Most customers are on 1–3 year contracts with guaranteed service frequencies and emergency on-call rates baked into their agreements. Services are scheduled overnight or off-hours to minimize disruption and comply with sanitation mandates.
No single customer represents more than 4.6% of revenue. The top 50 clients account for ~68%.
Operations, Workforce, and Route Optimization
Field operations:
6 overnight cleaning crews (2–3 techs per crew)
1 grease trap division team
2 fan and vent specialists
1 QA/safety officer
1 compliance documentation coordinator
2 dispatchers (schedule routes and manage reports)
Crews are trained to:
Clean all hoods, filters, ducts, and fan components per NFPA 96
Use hot-pressure washing, degreasing agents, and containment traps
Document all work with before/after images and digital reports (FireFrame system)
File inspection forms with local fire authorities and customers
Fleet:
9 pressure washing trucks outfitted with waste recovery systems
3 grease hauling trucks
FMV: ~$720,000 (fully owned)
Post-close operations plan:
Launch a “compliance guarantee” marketing program backed by documentation audits
Introduce 4-day workweek test for crews to improve retention and reduce burnout
Add second shift for expansion into neighboring city
Facilities and Equipment
Primary location:
8,000 sq ft warehouse and admin office with:
Power washing bay
Equipment storage and maintenance station
Wastewater containment tanks
Training room and compliance documentation storage
Lease: $6,200/month (NNN), 3 years remaining with a 5-year renewal
CapEx forecast:
Add 2 new service trucks to open second shift: $150K
Upgrade compliance portal and reporting automation: $8K
Grease hauling tank replacement and OSHA pump station: $20K
Sales and Marketing
Current acquisition model:
Referral from fire marshals, kitchen designers, fire system installers
Google Ads, SEO (focused on “NFPA 96 cleaning + city name”)
Direct outreach to multi-unit restaurant operations managers
Franchise-style branding with uniformed techs and wrapped trucks
Marketing spend: ~$5,100/month
Post-close strategy:
Hire franchise development lead to launch new regional offices or license territories
Partner with restaurant equipment suppliers to bundle services at install
Launch a “certified safe kitchen” seal for clients meeting all quarterly checkups
Acquire mom-and-pop cleaners in rural areas and consolidate routes
Financial Performance Summary
Revenue: $4.8M
COGS (chemicals, labor, fuel): $2.58M
Gross Profit: $2.22M
SG&A: $1.295M
Adjusted EBITDA: $925K (19.3%)
Margins:
Hood cleaning: 50–55%
Grease trap: 45–48%
Fan and vent: 60%+
Emergency cleaning: 70%+
Service billing is monthly or by service date, with card-on-file preferred. All commercial clients must comply with inspection and maintenance codes, which gives the company strong negotiating power and high client retention.
Legal and Compliance
OSHA-compliant operations (training, MSDS sheets, gear logs)
NFPA 96, ANSI, and EPA compliance verified quarterly
Fully insured: $2M GL, $1M auto, $1M umbrella, $1M workers comp
City grease hauling and disposal permits active
No major litigation or EPA/federal violations
Buyers should ensure continuity of permits and proper containment/disposal licensing where required.
Working Capital and Transition Budget
Payroll float: $85K–$95K
Truck expansion and equipment purchase: $150K
CRM and reporting software: $10K
Seller consulting/retention: $30K
Franchise development starter budget: $25K–$35K
Ideal Buyer Profiles
Commercial cleaning operators or janitorial roll-ups
Franchise developers looking for route-based recurring revenue
Entrepreneurs from fire protection or facilities compliance backgrounds
PE-backed service roll-ups seeking asset-light, B2B recurring platforms
Post-Close Execution Plan
Conduct audit of top 100 clients for upsell and bundling opportunities
Establish internal franchise prototype for citywide territory expansion
Recruit additional compliance coordinator to expand into new states
Launch grease trap-only service line in satellite cities via remote dispatch
Create national marketing alliance with kitchen equipment installers and fire safety vendors
Conclusion
This commercial kitchen hood cleaning and grease abatement business offers stable, regulation-driven recurring income, well-trained crews, high service margins, and an untapped franchising opportunity. With SBA 7(a) financing, a buyer can enter a specialized niche where clients are obligated by law to remain compliant and renew their contracts regularly. Strategic growth can be unlocked through route expansion, territory licensing, and value-added partnerships with restaurant groups and fire code enforcement agencies. This is a highly scalable business in a market segment that rewards precision, documentation, and operational consistency.
