Not too long ago we did a video that looked at cleaning franchises both from the master franchise perspective as well as the individual unit franchise. This time we will focus on the dynamics of an individual unit so this will be for the folks investing $10,000 or less on a cleaning franchise.
As always I’ll give you the good and the bad of each situation and we will look at several other cleaning franchise options that you may not be aware of.
Now by far the most publicly visible cleaning franchise model is where the master franchise sells unit franchises to aspring cleaners who want to own their own business. You have probably seen these ads locally selling cleaning franchises for anywhere from $2,000 to $12,000.
How this franchise situation works is the master franchisee purchases the rights to set up a regional office that sells individual unit franchises to you. Simultaneously they also secure cleaning contracts for you to service. There are many franchises out there using this model in the commercial cleaning space like Jan-Pro, Jani-King and Anago.
This can be a quick and easy way for someone to get started in their own cleaning business. It’s not ideal, there are some tradeoffs but it is certainly the path of least resistance to get your own business running.
In an ideal world both the master and unit franchisee benefit. Let’s look at the reasons why.
The Master Franchise owner retains most of the money you invest to buy this franchise so they make money from your investment. They will also retain a portion of the money that the customer pays when you perform the cleaning.
So you might ask why the heck would I do all the cleaning work and pay someone on top of that? Well you don’t have to, there are other options. But the rationale behind buying the unit franchise and paying royalties will make sense for some people based the benefits that you receive. Lets look at those benefits. Firstly the master franchise owner is taking care of the insurance which can be difficult and prohibitively expensive for a new start up business to obtain. Next the administrative tasks such as customer phone calls and client billing are handled by your master franchise owner. Its also often hard for a new business to get rolling if you have to wait 30-60 days to get paid which are usually the terms on commercial cleaning accounts. Your franchise however will cover you and pay you sooner. Next they will land all the contracts so you aren’t having to cold call to businesses in your area to try and obtain cleaning contracts. The master franchise also presents a well known brand name that most businesses will be familiar with as well as a professional image. You will also benefit from business systems and processes to help you be more efficient. So there are benefits but for those benefits you will pay money. CON’T AT: http://www.franchise.city/cleaningfranchiseadvice/