Buying A Janitorial Services Franchise

Franchise Guide:

If you’re thinking about starting your own biz and have only a small amount to invest, you may be considering buying a janitorial services franchise.

For a fee, a janitorial service company (the ‘franchisor’) typically provides you (the ‘franchisee’) with customers and marketing, billing and collection services. Every franchisor has success stories to share. Be cautious. While success in the janitorial service industry is possible, it’s not a guarantee.

How Janitorial Services Franchises Work
In a typical janitorial cleaning franchise, you pay the franchisor a fee for a ‘package’ of cleaning accounts. The fee is based on the dollar value of cleaning accounts that the franchisor will make available. The fee usually is about half the gross income the accounts are supposed to generate in a year. For example, for a fee of $10,000, you’ll get accounts worth $20,000; for a fee of $15,000, you’ll get accounts worth $30,000. You also may have to pay ongoing royalty or management fees.

The franchisor may offer you financing. This may sound especially attractive if you have trouble getting credit from traditional lenders.

The franchisor is supposed to offer you cleaning accounts that will produce the level of income represented in the package you purchased. However, several factors can affect that level of income. For example, if you don’t accept an account, the franchisor may not have to offer you a substitute. Or, if you refuse an account because you feel it’s located too far away, you may lose your right to that income. Also, if you lose accounts because you did a poor cleaning job, the franchisor doesn’t have to replace those accounts.

Check the problems you may face and more.