Banner Ventures Announces Partnership with Zerorez
SALT LAKE CITY, August 15, 2022 /PRNewswire/ -- Banner Ventures today announced a new partnership with Zerorez Franchising Systems, Inc., (Zerorez) and several of Zerorez's franchisee partners including Colorado Springs, Dallas, Denver, Minneapolis, Phoenix, Pittsburgh, Raleigh, Salt Lake City, Spokane, and St. Louis. Zerorez was founded in 2003 as a natural alternative to traditional chemical-based carpet cleaning and has become a leading residential and commercial services franchisor in the United States.
With 70 locations and system revenue of ~$150M, Zerorez is positioned to become the leading carpet cleaner in the U.S.
Zerorez's current management group and the acquired franchisees retain a meaningful ownership stake in Zerorez and Shawn Moon will continue to serve as Chairman and Chief Executive Officer during this next phase of expansion. "For the last two decades, Zerorez has grown into a market leader without any institutional capital supporting us," stated Mr. Moon. "While we know that we have the technology, market reputation, and team to achieve our goals as a company, we felt that bringing in the right capital partner would enhance our ability to grow through acquisition and organic expansion. Banner is the right partner to help us build on Zerorez's historic success while executing on our vision for future growth."
"The founders and early franchisees of Zerorez have built an incredible team, culture and brand which has inspired strong loyalty from customers around the country," stated Tanner Ainge, Managing Partner of Banner Ventures. "There is enormous potential to build on that heritage and further expand the Zerorez model. We believe Zerorez is positioned to become the leading carpet and floor cleaning service provider in the world and we could not be more excited about teaming up with this incredible group of entrepreneurial leaders."
Zerorez has received a number of awards and recognitions from industry trade groups. In recognition of its cleaning efficacy, the Carpet and Rug Institute (CRI) has awarded Zerorez its Platinum Rating, the cleaning industry's highest rating. Franchising expert Dr. Ben Litalien has also recognized Zerorez for reaching National Brand Status in its franchising activities—and Zerorez will continue to offer territory expansion opportunities to new and existing third-party franchisees.
In connection with the closing of this transaction, Zerorez also appointed Jon Laudie as Chief Financial Officer. Prior to joining Zerorez, Mr. Laudie served in key financial leadership roles for publicly-traded and private equity-backed companies including 1-800-Contacts, Lucid Software, Ancestry.com and Netflix.
"I'm thrilled to be a part of this new partnership between Banner Ventures, Zerorez corporate and the acquired franchise locations," stated Mr. Laudie. "By bringing these operations together with enhanced corporate infrastructure, Zerorez is positioned to become a true market leader in the residential services category."
Financing for the transaction was provided by KeyBank and McGuireWoods advised Banner Ventures on the deal. Zerorez Franchising Systems, Inc. was advised by Kirton McConkie.
Founded in 2003, Zerorez is a carpet cleaning franchisor with headquarters in Pleasant Grove, Utah, and franchisees and operations throughout North America and the United Kingdom. Zerorez does not use detergents or harsh chemicals, but instead uses patented technology that cleans using Zr Water® - electrolyzed water that is non-toxic and completely safe for people, pets, and the planet, but powerful enough to clean. With over 190,000 reviews and an average rating of 4.9 stars on Google, no other carpet cleaner in the world gets your carpets as clean - or keeps them clean as long as Zerorez. More information can be found at www.zerorez.com.
ABOUT BANNER VENTURES
Banner Ventures is a private equity & venture capital firm focused on providing partnership capital to family-owned and founder-led businesses in the United States. Headquartered in Salt Lake City, Utah, Banner also maintains a strong presence in markets with a concentration of its investment team, portfolio companies or limited partners, including Phoenix, AZ, Las Vegas, NV, Southern California, Boise, ID, Dallas, TX, Chicago, IL and Boston, MA. More information can be found at www.bannerventures.com.
SOURCE Banner Ventures