Ten reasons not to buy a commercial cleaning franchise or franchise franchise
I am a commercial broker and I have promoted several commercial cleaning franchise sales and talked with more owners. I also have a commercial cleaning business. Every franchisee I am saying says that if they can go back and go, they will choose not to join the franchisee
Let me start by saying that I do not necessarily have any problems with franchising. For emerging business people franchises provide a structured and simple way to enter an industry. Often franchising has an established brand identity and training program. Very Good Specializes in selling franchises, usually with an exciting manual that describes the wealth once you start flowing. For some people, franchising is the right choice.
The focus of this paper is to point out some specific commercial (commercial, rather than household) cleaning / cleaning industries. An internet search for only one commercial cleaning and franchising opportunities is endless. Jani King claims to be the biggest player here, Jan Pro, ServiceMaster, Coverall and several other countries. Even with the size of these franchises, they have only a 10% market share in this industry. This article refers to the actual implementation of clean unit franchisee, rather than the owner or regional developers.
In short, here is the concept. You purchase a franchise from a franchisee. With Franchise, you get training, work on the equipment (usually new) and some startup accounts. You purchase your insurance and margin through the franchisor. Once running, franchisees deal with billing, customer relationships. Usually you need to buy your supplies through a franchisee
Let me stop here and say that if you want to do your own cleaning and keep small, franchising may be a good choice. If you want to add and add accounts and employees, then you need a new account. You can get them yourself or buy them from a franchisee … give me ten o'clock.
1. Cost: The cost of getting a new account is expensive! Usually they are around four times the total monthly income. A $ 500 account will cost $ 2,000 – Ouch!
2. ROI: Using this example and a 40% profit margin, you will need 10 months to recover your money. 3. Bidding Accounts The franchisees bid their accounts for setting the price. They then take them, and in some cases you need to take it. They are not motivated to try to get the highest price, they just want to get business.
4. Limitations 5. Your growth is limited and you are confined to a geographic area. Training I do not have a franchise training, but I would say that cleaning is easy! This is one of the beauty of this business – it's simple. There are many excellent Internet resources and books that will teach you the techniques of commercial cleaning. Do not want to do this? You can hire an experienced janitor who he or she can teach you far less than their training costs. You can get all the forms and software you need, you need less than $ 200 online.
6. You must buy their equipment or supplies Why not buy, buy used or only you need to buy. There are a lot of accounts that do not require top-level row buffers
Do you really need a brand? Customer loyalty in this business is very low. Most customers are concerned only with the consistency and quality of work and the price, not the name.
8. Do you just buy a job? Most people want to own a business because they want to be rewarded with performance. With a franchise, your reward may be limited.
9. Do not want to do sales, billing or customer follow-up? Alternatives Some brokers sell accounts for people who do not like to sell. You can work as a subcontractor, never having to deal with customers. If necessary, you can outsource your bills.
10. Careful Prediction and Financial Commitment No one can predict how well you will do in this industry.
For some franchisees, the choice of "getting a business in a box" is irresistible. My advice is to start small, buy what you need, when you go, try to avoid debt as much as possible