Most cleaning franchises show a substantial increase from 2006 to 2007. With the downturn in the real estate market and the rise in new and remodeled commercial properties, the need for cleaning services continues to exist. Here is a small but useful list of cleaning franchise businesses that you can run from home.
jani rey
Jani-King (commercial cleaning) began in 1969 and has been a franchise since 1974. While working the night shift at a hotel, Jim Cavanaugh saw a continuing need for housekeeping services.
Etrepreneur.com reports from 2006-2007 that Jani-King added 496 new US, 29 Canadian, 31 foreign, and 3 company-owned franchises. As commercial real estate is expected to grow in 2008, the need for concierge services is expected to grow as well.
Costs:
Startup costs $11k-34k+
Deductible Fee: $8.6k-$16.3k+
Ongoing Royalty Fee: 10%
Term: 20 years, renewable
Operations:
Can be run from home
no absent property
Additional Building Care
Okay, you’re going to think this is too personal, but it’s the reality of business. Jim Cavanaugh (of Jani-King) got divorced and his ex-wife Arleen Cavanaugh started Bonus Building Care and you guessed it, it’s a cleaning service. This is a prime example of how fruitful the commercial cleaning business is. BBC was started in 1996 and grew its US franchises from 1,415 in 2006 to 1,774 in 2007, 3 of which are owned by the company.
Cost:
Start: $8k – $13k+
Deductible Fee: $6.5k
Ongoing Royalty Fee: 10%
Term: 20 years, renewable
Renewal Fee: $2k
Operations:
Can be run from home
Employees needed to run: 1-5
no absent property
Jan-Pro International Franchises. Inc.
Specializing in commercial cleaning began in 1991 and has been franchising since 1992. Founded by Jacques Lapointe, Jan-Pro grew its US franchise base from 5,066 in 2006 to 6,409 in 2007. Canadian franchisees grew from 305 in 2006 to 609 in 2007. 14 foreign franchises started in 2007.
Costs:
Start-up: $3.3k-$49.9k
Deductible Fee: $2.8k-$44k
Ongoing Royalty Fee: 10%
Term: 10 years, renewable
Ratings:
New value: $1k-14k+
Cash liquidity: $1k
Entrepreneurial experience: management skills
Operations:
Can be run from home
Number of employees: 1
no absent property
servpro
Servpro (residential and commercial cleaning) began in 1967 and began franchising in 1969. Ted Isaacson began providing cleaning and restoration services to homes and businesses including, but not limited to, disaster protection, air ducts, and HVAC systems. Servpro increased its national franchise base from 1,310 in 2006 to 1,368 in 2007.
Costs:
Investment: $97k – $154k
Deductible Fee: $38k
Ongoing Royalty Fee: 3-10%
Term: 5 years, renewable
Renewal Fee: $250
Ratings:
Net worth: $100k
Cash liquidity: $60k
Business experience: general, marketing skills
Operations:
Can be run from home
Employees needed: 5-10
Absentee ownership is not allowed
Chem-Dry (cleaning carpets, curtains and upholstery)
Robert Harris founded Chem-Dry in 1977 and began franchising in 1978 using a cleaning solution he created. Chem-Dry has franchise opportunities throughout the world. From 2006 to 2007, the company increased its US base from 2,547 to 2,679.
Costs:
Start-up: $25k-$214k
Deductible Fee: $13k-$35k
Ongoing Royalty Rate: #350/mo.
Renewal Fee: $750
Ratings:
Net worth: $75k
Cash liquidity $4k
Operations:
Can be run from home
Absentee ownership is allowed
ServiceMaster Clean (began in 1947, franchised since 1952)
It is said that after a chemical accident left Marion Wade partially blind in 1945, he came up with the idea for a commercial and residential heavy cleaning and disaster restoration company. ServiceMaster Clean is part of a franchise unit that includes Merry Maids and Terminix. ServicesMaster saw an increase in US franchises from 2,978 in 2006 to 3,041 in 2007. Canadian franchises grew from 166 to 172 respectively. This company has been around for a long time and it is not surprising that it has experienced constant growth.
Costs:
Investment: $21k – $111k
Deductible Fee: $17k-45k
Ongoing Royalty Fee: 4-10%
Term: 5 years, renewable
Ratings:
Net worth: $50k-75k
Cash liquidity: $15k-25k
Experience: General Business
Operations:
Can be run from home
Number of employees needed: 3
Absentee ownership is not allowed
System4 (commercial cleaning)
Started in 2003 and began franchising immediately, based in Brecksville Ohio System4 is a nationwide franchisor with 467 franchisees in 2007 (up from 283 in 2006).
Costs:
Investment $6k – $38k
Deductible Fee: $4.4k – $32k
Ongoing royalties: 5%
Term: 20 years, renewable
Ratings:
Net worth: $10k
Operations:
Can be run from home
Employees needed: 3
Absentee ownership is allowed
Building stars inc.
Building Stars Inc. began in 1994 and began franchising in 2000. Headquartered in St. Louis Missouri, BB Inc saw franchises increase from 217 to 225 between 2006 and 2007.
Costs:
Investment: $2.2k
Deductible Fee: $1.2k
Ongoing Royalty Fee: 10%
Term: 5 years, renewable
Ratings:
Cash liquidity: $1k
Operations:
Can be run from home
Number of employees needed: 5
Absentee ownership is not allowed
There are many companies already making huge profits. In order for you to get a piece of the pie, you have to be in the kitchen. Home cleaning franchises will show strong growth in 2008. As always, choose your business carefully and plan your moves for growth and longevity.
