In this article, we’ll be discussing how cleaning franchises work.
As a prospective franchisee seeking investment opportunities with cleaning franchises, one of the things you may want to know is how they operate.
An understanding of how they operate will eventually make things easier for you when running your own franchise outlet.
BEFORE FRANCHISING A CLEANING COMPANY
Now, cleaning businesses differ from one another.
In other words, a cleaning franchise A is likely to have its own unique way of running its day-to-day operations that’s different from franchise B.
Nevertheless, the core principles of guiding their operations remain the same, and so the question; how do cleaning franchises work?
Whatever your choices are in terms of existing cleaning franchises, we’re going to show you how they work.
With this knowledge, you’re able to use pretty much the same approach irrespective of the franchise to launch or own your own franchise outlet.
What’s A Franchise?
Now, franchising refers to a process whereby the owner of a business system grants ownership rights to an investor. Such ownership right is limited by a fixed term.
It includes the usage of the franchisor’s trade name, trademarks, and brand.
Within this period, the investor, also known as the franchisee pays royalties as part of an agreement to do business under the franchisor’s system and name.
You Don’t Need to Start a Cleaning Business from Scratch
Every cleaning franchise you see was once set up from scratch and blossomed into a successful enterprise. As an expansion strategy, these cleaning businesses open up franchise opportunities.
Such franchise opportunities are open to willing investors. Rather than setting up your own cleaning business from scratch, you get to buy or own a unit of an existing cleaning franchise.
These businesses are most successful and have overcome the initial challenges associated with growing businesses.
Protection From Competition
Having bought a cleaning franchise, a franchisee gets protection from competition. Of course, not all competition is eliminated, but rather cleaning franchises belonging to the same brand.
So, how is such protection offered? Through the provision of exclusive territories!
A cleaning franchise may choose to zone out or allocate territories to each franchise unit. This ensures that maximum patronage is attracted.
However, there are times when heavy commercial areas (especially those with high demand for cleaning services) may have multiple franchise owners from the same cleaning franchise operating there.
If there are one thing cleaning franchises are well known for, it supports. Support is provided in multiple ways and is aimed at helping the franchisee succeed.
This begins with training. Whenever you join a cleaning franchise, adequate training is provided to ensure smooth take-off and running of your unit.
Asides from initial training, there may be ongoing training programs designed to update franchisees with relevant skills and knowledge. This ensures they’re in tune with industry best practices.
Every cleaning franchise has its own training duration and program.
Marketing and advertising are other forms of support offered by cleaning franchises. A franchisor may provide access to local, regional or national advertising. It all depends on what best serves its business interests.
Ongoing support is also a part of provisions made by cleaning franchises to help franchisees succeed.
It’s a Win-Win Scenario
Cleaning franchises are structured in a way that all parties involved benefit from their growth.
In other words, the growth of a cleaning franchise creates a win-win situation for both the franchisor and franchisee. As sales increase, so also do remittances or royalties.
The Franchisor Sets the Terms
As the owner of the cleaning franchising system, the franchisor sets the terms of the agreement.
This might be perceived as being unfair but the counterargument is that the prospective franchisee gets to decide whether such terms are fair or not.
The terms and agreements are only signed after it’s deemed to be fair enough and beneficial to the other party as well (in this case the franchisee).
When applying for a franchising opportunity a Franchise Disclosure Document (FDD) is issued at some stage during the application process.
This document holds all the terms of doing business. It covers every area of operation. This document contains a lot of legal terms. You should seek legal counsel or interpretation before committing to the terms.
There’s No Guarantee of Success
Although there’s a higher chance of succeeding with a cleaning franchise, there’s never a guarantee of success.
Such risk is crystal and you’ll have to make upfront payments to the franchise owner without the possibility of a refund when things go south.
The only reassurance you have is to depend on past results or successes made by the franchisor. Whether this is good enough or not rests entirely on you.
The truth is, cleaning franchises remain hugely popular to this day.
Ongoing Payments are Necessary
A cleaning franchise aims to help market and expand the brand while also earning profits from sales.
Remittances are made by way of royalties among other forms. The more outlets a cleaning franchise has, the higher the potential for profitability.
Ongoing payments are fixed from the onset. That is, from the FDD.
So, you’ll need to have reviewed the terms of the agreement to see if you can keep up or not before committing.
It’s Cheaper to Own a Cleaning Franchise
Compared to starting your cleaning business, it’s much cheaper to buy a cleaning franchise. The total startup costs involved are much less for cleaning franchises than for new business ideas being implemented.
Operating Under a Major Brand
Big cleaning brands give franchisees the opportunity of operating under their wings. In other words, franchisees are granted access to the usage of all branding materials owned by the franchisor.
This rubs off positively on the new franchise outlet as clients associate the business with the successes of the parent company.
Franchise Terms and Renewal
Every cleaning franchise has a term that can be fixed or renewable.
In other words, the cleaning franchise you join may offer renewable terms or have a fixed term after which renewal isn’t a possibility.
The workings of cleaning franchises follow the above procedures. The points given above apply to these franchises. Given the details covered, you’re better informed on how to proceed.
You get to choose which cleaning franchise-best serves your needs.