A cleaning business is one of the most lucrative businesses an entrepreneur can consider venturing into today. However, there are several essential decisions to make before starting a cleaning business. You’ll have to decide on the cleaning services to offer, whether it’s a commercial or residential cleaning service. It’s also necessary to decide whether to start the business from scratch or buy a cleaning business franchise.
Joining Image One Cleaning Franchise gives new business owners several advantages, such as; lower chances of failure, a built-in customer base, brand recognition, and many more.
According to several reports, the cost of buying a commercial cleaning franchise ranges from $72,775 to $216,675, depending on some factors.
Factors That Affect The Cost Of Buying A Commercial Cleaning Franchise
Several factors contribute to the actual cost of buying a business franchise. Here are some of the factors that can influence the cost of buying and owning a commercial cleaning franchise:
- Location
If your proposed business location is located in a city center, the cost of buying a commercial cleaning franchise will increase. For instance, if your business location is in Los Angeles, California, there are chances that you’ll pay a higher franchise fee than a business located in Indianapolis, Indiana. This is because a commercial business in an expensive city is assumed to attract more clients capable of paying higher service fees.
- Competition
Competition is another factor that influences the cost of buying a business franchise. If you choose a business location with several commercial cleaning businesses located within a few miles, your franchise fee will be lowered due to the high competition in the area. On the other hand, if the proposed business location is far from the competition, the cost of getting the franchise might be higher.
- The Company’s Policies
Companies offering business franchises charge differently depending on their company’s level of recognition and customer base. In addition, the services offered, products included, and support rendered by the franchisor vary and can influence the cost of franchising.
The Breakdown Of The Cost Of Buying A Commercial Cleaning Franchise
- Franchise Fee
A franchise fee is an amount a franchisor charges an entrepreneur to use their business system. It permits the franchisee (the buyer) to open a business with the brand name and logo of the franchisor. The franchise fee varies but generally ranges between $29,750 and $119,700. The fee often covers initial on-site training, head office training, etc.
- Travel expenses for training
The travel expenses vary depending on the preference of the franchisee. It ranges between $150 to $3000 and covers the cost of transportation, feeding, accommodation, and other costs while attending the training sessions.
- Royalty Fee
When buying a business franchise, there’s usually a one-time fee, such as the franchise fee, and a recurring fee, which is the royalty fee. The royalty fee covers maintenance expenses, marketing funds, administration expenses, etc. The royalty fee is a percentage of the franchisee’s gross monthly revenue. The percentage ranges from 5% to 10% of the franchisee’s monthly sales, depending on the company.
- Cleaning Supplies and Equipment
Before setting up a commercial cleaning business franchise, it’s necessary to buy the cleaning equipment and supplies recommended by the franchisor. Most franchisors specify the cleaning supplies that franchisees should use. The amount spent on cleaning supplies and equipment should be between $3,500 and $10,000.
Benefits Of Buying A Commercial Cleaning Franchise
Apart from saving entrepreneurs the stress of starting a business from scratch, a commercial cleaning franchise offers several other benefits, such as;
- Higher Buying Power
The cost of placing an order for cleaning supplies as a sole proprietorship business owner can be high. But as a franchisee, you’ll have more buying power by working with a franchisor. The franchisor often has a chain of business networks, and they can place bulk orders that will be distributed to franchisees within their network.
- Advertisement Campaign
Sometimes, franchisors often require franchisees to contribute to the brand’s advertisement campaign. The advert will include the franchisee’s location, thus creating more recognition for the franchisee’s business location.
- Better Profits
Compared to other typical businesses, most franchisees begin to make higher profits within the first few years of being in business. This is usually because the franchisor’s brand name is already recognized and has a steady consumer base.
- Lower risk
Setting up a cleaning business from scratch has some uncertainties. In most cases, it could take several years before the business finds its footing in the industry. With a franchised cleaning business, the uncertainties are reduced significantly. This is because most of the hurdles they may face would have been crossed by the franchisor.