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Unpacking Cleaning Franchise Start-up Costs

Starting a commercial cleaning franchise business can offer new owners profit potential with low startup costs. When you buy a franchise, you buy the pieces of a business that a start-up company may take years to acquire. So, what's part of your initial investment when starting a cleaning franchise? To get started, you’ll need to anticipate initial franchise fees, acquire the proper licenses and insurance, and stock up on materials and cleaning supplies. In this blog, we help you understand the startup costs for a commercial cleaning franchise.  (Please review the Franchise Disclosure Document for all details for each franchisor.)

Initial cleaning franchise fees 

The first cleaning franchise cost is a lump sum payment made by an owner to the franchisor once an agreement has been made between both parties. Initial franchise fees act as compensation for the experience, training, marketing and brand name rights that the franchise is providing the owner. Purchasing a franchise can allow you benefits such as name recognition standard, marketing or advertising materials and established guidelines that will help you get started on the right foot.

The initial franchise fee is traditionally made by the new owner once they sign their franchise agreement. Initial franchise fees are generally in the range of $10,000 to $50,000 for cleaning franchises and are disclosed before signing in the franchise disclosure documents. For most franchises, the initial fee is not negotiable, but the amount of the franchise fee is ultimately whatever the two parties agree on.  

Cost of materials

Purchasing or renting professional cleaning tools and supplies is a necessary part of starting a commercial cleaning franchise. These supplies are needed to perform a wide variety of cleaning jobs and buying effective cleaning tools is often a key to success. It’s important to keep in mind that some customers prefer alternative cleaning supplies that can cater to their unique needs. For example, owners may need to invest in scent-free or natural products for customers with allergies and other sensitivities, all-the-while adhering to cleaning protocols.
What materials does a franchisee need to get started? Here are some of the basic supplies every commercial cleaning franchise owner should have:
  • Uniforms or aprons with pockets for essential items
  • Disinfectants and/or sanitizing cleaners
  • Paper towels and microfiber cloths
  • Latex gloves
  • Scrub brushes
  • Duster
  • Mopping system
  • Bucket

Permits, licenses, and registration 

For any business there are likely to be licensing and permitting requirements, and sometimes registration with local or state authorities. For your cleaning franchise, there will likely be an upfront cost as well as a continuing cost associated with maintaining the required license, permit and/or registration. 

The business registration process may sound intimidating, especially for first-time business owners, but the process is usually very straightforward and can take as little as one day in some situations. It’s important to check with your state, city and county governments to properly calculate the costs and any other additional legal costs that may be associated.

Liability Insurance

As with any business, accidents can happen. This is where liability insurance comes into play. This type of insurance is critical for protecting your franchise when accidents happen, and liability insurance is a must for cleaning businesses catering to commercial clients. The general cost of liability insurance can be anywhere from $500 to $2,000 annually.  Depending on where you live, you may be able to pay your insurance bills monthly instead of the entire amount at the start of the year. You may need to consider workers ’ compensation coverage as your business grows and you start hiring employees.

Understanding Cleaning Franchise Costs

Overall, the costs of starting a commercial cleaning franchise are considered as one of the most affordable — especially if you work within a defined budget and purchase supplies for your franchise only as they are needed. Other franchise startup costs, such as advertising and labor, will depend on the size of your franchise and what your business plan has budgeted for these elements. Coverall commercial cleaning franchise startup costs  are low, allowing you to start a commercial cleaning business with more freedom to invest money into your business.

Posted: 10/23/2019 12:00:00 PM by Stephen Massaro | with 0 comments