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ICAN/ATEX: What is the difference between a startup and a franchise?

March 28, 2013

Many cleaning professionals visit the International Custodial Advisers Network (ICAN) Ask the Experts page for insight and, every business day, we deliver advice to better help you perform your job.

Thursday’s Question:ICANATEX Logo

What is the difference between starting a cleaning business on your own and starting with a franchise?

Which is better, money wise and educationally?

I have a year’s experience and my wife has 12.

Thursday’s Answer:

Normally, franchises that do not procure accounts for you charge a low monthly royalty, often below 10 percent. They can be high-profile companies that generate leads with ongoing TV advertising.

Franchises that secure accounts and resell them to you typically charge three times the monthly gross for the acquisition fee; their monthly royalty can run 20 percent to 30 percent on top of that.

The problem with allowing someone else to bid the accounts for you is that you could purchase an account and then end up earning minimum wage for all of your hard work.

So, if you do sign up with a franchise, make sure you purchase janitorial bidding software to … - Gary Clipperton, president of National Pro Clean Corporation

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