How do Commercial Cleaning Franchises Work?
Blog
September 23, 2024

How do Commercial Cleaning Franchises Work?

**Please note that Arelli is not a franchising company. We will do our best to be objective and be observant in areas that may represent a conflict of interest.

Two of the oldest commercial cleaning franchises are Service Master – which Marian E. Wade  started in 1929  and Jani-King which was founded by Jim Cavanaugh in 1969.

Over the years, and along with other commercial cleaning franchises like Stratus North, Jan-Pro have brought value, knowledge and have helped many janitors and first-time cleaners up their game to meet the requirements of a very demanding business.

Commercial cleaning franchising involves purchasing the rights to operate a cleaning business under an established brand. As a franchisee, you typically pay an initial fee and ongoing royalties to the franchisor in exchange for training, marketing, and operational support. The franchisor provides a proven business model, brand recognition, and industry expertise, making it easier to succeed than starting from scratch.

For example, Jani-King requires an initial investment ranging from $8,000 to over $100,000, depending on location and scale, while Stratus North require an initial fee of $3,450 to $53,000, and a Jan-Pro franchise that could cost anywhere from $127,000 to $769,000 .

What’s common among all franchises is that every cleaning crew that shows up at a client’s facility and is working as part of a franchise commercial cleaning company, is exposed to the cost of money that got them there (the franchise fee), as well as a recurring cost to perform their service under the franchise agreement (the royalty fee).

The royalty fee is typically around 5% to 15% and does not necessarily include marketing costs, technology fees, or any other fees that may be part of the agreement with the owner of the franchise.

While a franchise can offer established business models, training and ongoing support, a proven business model, and lead generation capabilities, there are times when the down payment and ongoing fees can impact the franchise owner’s business viability, competitiveness, and sustainability in an ever-competing market place for janitorial services.

This is better for the customer as it reduces costs and keeps prices in check. Not very good for the franchisors that have all of these extra costs to reckon with.

One of the worst-case scenarios an in order to remain viable, a franchise owner could reduce the time spent at the facilities to help with incurred costs.

In lieu of a solid process optimization and utilizing more expensive tools and chemicals, this can results in poor service quality for the client.

Arelli is not a franchise. Through establishing strong relationships, sharing best practices, offering technical support, customer service, back up crews, problem solving when required, and providing an enhanced communication platform, Arelli empowers local crews to offer premium office cleaning services at affordable cost.

Learn More:

Tags
No items found.
Blog featured image
September 26, 2024

Flu-Free Zone: Your Office's Guide to Outsmarting Flu Season

Blue right arrow
Dark blue right arrow
Blog featured image
September 23, 2024

The Interesting World of Buying and Selling Cleaning Contracts

Blue right arrow
Dark blue right arrow
It only takes two minutes

Discover the Arelli difference for yourself

Let's talk