Did you know that Australia has three times more franchise outlets per capita than the US does? These businesses generate an annual turnover of 146 billion dollars and they currently employ 470,000 people. The concept is truly attractive as it allows the establishment of a business under a brand that’s already popular. Is franchising, however, easy to get started with and is it worthwhile?
The question is especially relevant to cleaning franchise opportunities as these tend to have a pretty good reputation.
So, what can a commercial cleaning franchise do for you and will you ever be capable of making good money this way? To answer these questions, we need to take a look at several important aspects of launching and running a franchise business.
What It Takes to Get Started with a Franchise Business
Before shedding more light on the advantages of a franchise, let’s take a look at what you need to get started and how much money you’ll have to spend in advance.
Starting a franchise business comes with certain expenses. There may be upfront fees, the costs of setting up the business and keeping it operational in the long run, as well as documentation and compliance costs.
All franchise participants have to make sure they comply with the Australian Franchising Code. The document regulates how business activities are being carried out, it informs potential franchisees about the specifics of a franchise agreement and it also provides a dispute resolution scheme. In essence, the code gives you some idea about your obligations, the type of information you’ll have to be provided with, the specifics of a valid franchise agreement and the procedure for handling disputes.
Go through the code carefully. If you have questions, you may get in touch with the Australian Competition and Consumer Commission (ACCC). It administers and enforces franchise-related regulations and can provide you with guidance on the setup costs, the upfront fees and the other financial or non-financial aspects of getting started.
Commercial Cleaning Franchise Options: Solid Investment or a Missed Opportunity?
In Australia, as well as in other parts of the world, a cleaning franchise is considered an excellent opportunity for starting your own business.
Several characteristics make a commercial cleaning franchise such a good option for newcomers to the field.
Some of the key advantages of getting started with this type of business include:
- A stable market: This industry is quite stable and the demand for its services will remain high as there is and will always be value seen in living and working in clean and healthy environments. When it comes to commercial cleaning, things get even better. There are very few businesses out there that don’t use an external service provider for the maintenance of their offices and other premises. While there are cyclical ups and downs in the field, the cleaning market is pretty stable in most industries and it can result in good long-term monetisation opportunities.
- Repeat business: companies and households that find a reputable service provider will stick with it. People don’t like changing cleaning service companies because it’s a lot of hard work. Thus, being capable of excelling in terms of service provision will quickly result in consistent repeat business – the heart and soul of every corporate operation.
- Trust is already there: franchisees don’t start from scratch. A cleaning franchise already has a well-established name. There’s also a methodology in place and the franchise could feature specialised equipment or cleaning solutions. People who are familiar with the brand and the perks that it brings to the table will be willing to hire a franchisee because they know exactly what to expect.
- Little capital required to get started: while it’s unrealistic to think you can launch a business without investing anything in it, a franchise opportunity is one of the most affordable choices. Depending on the franchise program you choose, there could be flexible payments and minimal upfront fees. Comparing a couple of franchise programs side by side will give you a good idea about the costs to anticipate and the amount of time that will have to pass for you to register a solid return on investment.
How Much Money Can You Make with a Cleaning Franchise?
Let’s return to the big question at hand – exactly how much money can you make when you start a commercial cleaning services franchise?
Your income will depend on the reputation of the brand, the franchise agreement terms and conditions and on your ability to quickly win clients and turn them into repeat customers (a good combination of marketing and high quality service provision will be required).
The start-up costs are comparatively low, especially when it comes to launching your own business idea from scratch.
Usually, franchisees will have to invest between 5,000 and 50,000 dollars when getting started. Most Australian cleaning franchise packages come in the range between 5,000 and 30,000 dollars. Do check out what the package includes as sometimes, the less expensive packages exclude a lot and could end up being costlier in the long run.
In 2019 commercial cleaning companies in Australia alone generated revenue of 12.8 billion dollars. Reports suggest there are 30,463 commercial cleaning businesses in the country. This means that the median profit per commercial cleaning company is 420,181 dollars per annum.
Of course, that’s a pretty simplistic view of the situation. Some cleaning businesses make a lot more, while others struggle. What you can see, however, is that you can make serious money in the field. As long as the preliminary costs are manageable, a cleaning franchise can quickly become a massive success.
A Few Words of Caution
While becoming a franchisee is easier than starting a business from scratch, there are still some issues to be mindful of.
Do check out the ongoing fees and payments you will have to make when joining a program. The upfront investment amount isn’t the only kind of expenditure linked to being a franchisee.
Also, the contractual agreement you sign when joining the program is the one that will always be in effect. If you dislike certain terms and clauses, you will still have to put up with those. Hence, you are not going to be in full control of the business that you’re running.
Depending on the specifics of the franchise agreement, there could be a defined territory within which you’ll have to work. The condition eliminates the prospects for regional expansion or even national growth. Finally, you’ll be incapable of adding new services that aren’t a part of the franchise portfolio.
Don’t rush through the process just because you want to get your business started. Also, don’t look for the cheapest cleaning business franchise program out there. Make sure you’re comfortable with the terms and conditions, there are no hidden fees and no additional restrictions that will severely limit your growth.
Getting started with a cleaning franchise could be an excellent option for ensuring your financial freedom and your professional success in the long run. A realistic assessment of the opportunity, however, will be required. While a franchise option may seem like a dream come true for inexperienced entrepreneurs, there are still some caveats. Knowing what you’re getting yourself in and doing your homework in advance will both be required to set yourself up for success.
Need help? Get in contact with Namoli to talk to one of our franchise experts and let the discussion begin.