Cleaning & Maintenance Management Online

Monday's Ask the Experts: Startup versus franchise

June 6, 2011
Monday''s Ask the Experts question from a cleaning professional on the International Custodial Advisors Network (ICAN) "Ask the Experts" page: 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.
The 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. And, their monthly royalty can run 20 percent to 30 percent on top of that.

The problem with allowing someone else ... — Gary Clipperton, president of National Pro Clean Corp.
To read the rest of this response, click here.