House Cleaning Franchise
Independent Support Center or House Cleaning Franchise?
Why are some owners who bought franchises successful and some not? If they are using the same model with the same support center the only difference has got to be the owner. After nearly four years of working directly with residential cleaning services I can guarantee you that, if given a model that is guaranteed to work, the only difference is the owner. Some owners follow and complete the action items necessary to hit their goals and some don’t. It does not matter if they are independent or franchise owners.
How do you know if the franchise or independent support center is promoting a model that does work? Like anything else in life, by doing your leg work. You need to call several users of the franchise or independent support center and ask them their success rate and their numbers. What you are looking for are companies that have grown a minimum of 50-60 net repeat clients per year. If the referring owners do not know the answer to that question how do they know if it worked or not? This will lend or take away credibility to the referral source. If you can’t find that kind of volume from all of your contacts with the referrals then do not buy that franchise or use that support center. Remember, their referrals will be their most successful clients.
Once you find the companies that have a working model it all come down to ease of implementation, support and cost.
- Perhaps the real question is “How soon will money be coming in the door?”
- Will all forms, documents, handbooks, etc. needed, be provided in an easily altered word document or will you need to create them?
- How much reading material will be necessary to implement what is provided?
- Is live support provided and how often?
- Will an individual walk you through the implementation of the items provided?
- How long will the support continue?
- Is support individual or in groups?
- Does support come from a successful seasoned veteran or from someone who has been taught by a successful seasoned veteran?
- What is the initial, total and ongoing cost of the program?
- The cost of purchasing a franchise can be as low as nothing and as high as $100K. Then there is the recurring fee that you pay on your gross revenues for the entire time you own your company. It generally runs about 5% of gross—not net per year. Service industries generally only net 10-14%. You are giving a lot of that to a franchise that could be used to decrease the cost of your service, making it more competitive, or taking a trip to Rome for a month or a year, depending upon what your gross/year is running. My last year in business we generated $1.98M in revenue per year. Franchise fees on that would have been $99,900 per year. That is insane
- Independent support centers have something to offer for as little as $19.95 and as much as $15K. Few of them have recurring fees
- If you have what it takes to be a successful entrepreneur then you will not need any support, or very little, after the first year. Why pay for it? If you do not have what it takes to be a successful entrepreneur it would be prudent to spend as little as possible while finding that out.
- Starting a cleaning service is the easiest if you have some cash to help subsidize a cleaner for a month or so. You can get started with a franchise or an independent support center just as easily and quickly. Even if you have a bit of saved money now, start with a full package but save some money for support as you grow. In the beginning that money will not come from profits because there aren’t any.