Home Based Cleaning Franchises Show Strong Growth In 2008

Most cleaning franchises are showing a substantial increase from 2006 to 2007. With the down turn of the housing market and the up swing of the new and remodeled commercial property there remains a need for janitorial services. Here is a small but helpful list of cleaning franchises businesses you can run from your home.

Jani-King

Jani-King (Commercial cleaning) began in 1969 and has been Franchising since 1974. While working the night shift in a Hotel Jim Cavanaugh saw the continued need for janitorial services.

Etrepreneure.com reports from 2006-2007 Jani-King added 496 new U.S. franchises, 29 Canadian, 31 Foreign, and 3 company owned. With commercial real-estate expecting to grow in 2008 it is predicted that the need for janitorial services will also grow.

Costs:

Startup costs $11k-34k+

Franchise fee: $8.6k-$16.3k+

Ongoing royalty fee: 10%

Term: 20 years, renewable

Operations:

Can be run from home

No absentee ownership

Bonus Building Care

OK your going to think this is too personal but it’s the reality of business. Jim Cavanaugh (from Jani-King) divorced and his ex-wife Arleen Cavanaugh started Bonus Building Care and you guessed it, it is a janitorial service. This is a prime example of how fruitful the commercial janitorial business is. BBC was started in 1996 and increased its U.S. franchises from 1415 in 2006 to 1774 in 2007 3 of which are owned by the company.

Cost:

Startup: $8k – $13k+

Franchise fee: $6.5k

Ongoing royalty fee: 10%

Term: 20 years, renewable

Renew fee: $2k

Operations:

Can be run from home

Employees needed to run: 1-5

No absentee ownership

Jan-Pro Franchising Int’l. Inc.

Specializing in commercial cleaning began in 1991 and has been franchising since 1992. Founded by Jacques Lapointe Jan-Pro increased its U.S. franchise base from 5066 in 2006 to 6409 in 2007. Canadian franchises when from 305 in 2006 to 609 in 2007. 14 foreign franchises were started in 2007.

Costs:

Startup: $3.3k-$49.9k

Franchise fee: $2.8k-$44k

Ongoing royalty fee: 10%

Term: 10 years, renewable

Qualifications:

New worth: $1k-14k+

Cash liquidity: $1k

Business exp.: management skills

Operations:

Can be run from home

Number of employees: 1

No absentee ownership

Servpro

Servpro (residential and commercial cleaning) began in 1967 and started franchising in 1969. Ted Isaacson began providing homes and business with cleaning and restoration services which includes but not limited to disaster protection, air ducts and HVAC systems. Servpro grew its nationwide franchise base from 1310 in 2006 to 1368 in 2007.

Costs:

Investment: $97k – $154k

Franchise fee: $38k

Ongoing royalty fee: 3-10%

Term: 5 years, renewable

Renewal fee: $250

Qualifications:

Net worth: $100k

Cash Liquidity: $60k

Business exp: General, Marketing skills

Operations:

Can be run from home

Employees needed: 5-10

No absentee ownership allowed

Chem-Dry (carpet, drapery & upholstery cleaning)

Robert Harris founded Chem-Dry in 1977 and started franchising in 1978 using a cleaning solution he created. Chem-Dry has worldwide franchise opportunities. From 2006 – 2007 the company grew its U.S. base from 2547-2679.

Costs:

Startup: $25k-$214k

Franchise fee: $13k-$35k

Ongoing royalty fee: #350/mo.

Renewal fee: $750

Qualifications:

Net worth: $75k

Cash liquidity $4k

Operations:

Can be run from home

Absentee ownership is allowed

ServiceMaster Clean (began 1947, franchising since 1952)

It is said that after a chemical accident left Marion Wade partially blind in 1945 he came up with the idea for a commercial and residential heavy cleaning and disaster restoration company. ServiceMaster Clean is part of a unit of franchises which includes Merry Maids and Terminix. ServicesMaster saw a rise in us franchises from 2978 in 2006 to 3041 in 2007. Canadian franchises grew from 166 to 172 respectively. This company has been around a long time and it is no wonder it has experienced the consistent growth.

Costs:

Investment: $21k – $111k

Franchise fee: $17k-45k

Ongoing royalty fee: 4-10%

Term: 5 years, renewable

Qualifications:

Net worth: $50k-75k

Cash liquidity: $15k-25k

Experience: General business

Operations:

Can be run from home

Number of employees needed: 3

Absentee ownership is not allowed

System4 (commercial cleaning)

Began in 2003 and started franchising right away, based in Brecksville Ohio System4 is a nationwide franchiser with 467 franchisees in 2007 (up from 283 in 2006).

Costs:

Investment $6k – $38k

Franchise fee: $4.4k – $32k

Ongoing royalty: 5%

Term: 20 years, renewable

Qualifications:

Net worth: $10k

Operations:

Can be run from home

Employees needed: 3

Absentee ownership is allowed

Building Stars Inc.

Building Stars Inc. began in 1994 and started franchising in 2000. Based out of St. Louis Missouri BB Inc saw an increase in franchisees of 217 to 225 from 2006 – 2007.

Costs:

Investment: $2.2k

Franchise fee: $1.2k

Ongoing royalty fee: 10%

Term: 5 years, renewable

Qualifications:

Cash liquidity: $1k

Operations:

Can be run from home

Number of employees needed: 5

Absentee ownership is not allowed

There are plenty of businesses that already turn great profits. In order for you to get a slice of the pie you have to be in the kitchen. Home based cleaning franchises will show strong growth in 2008. As always, pick your business carefully and plan your moves for growth and longevity.

Why Choose Food Franchising As a Business?

Venturing out the traditional business will be risky. People may be hesitant of trying something they are not familiar with. But with our new generation of entrepreneurs will show you that there is nothing wrong in trying the new way of having a business. Getting a food franchise will not bring you down. Here are some reasons why more people are choosing food franchising as their business:

1. Food franchising already have their brand recognition. These already established food recognition and their name reputation. This is really important due to the fact that they already have their customers. It is an advantage if customers are familiar with your business brand; it only gives you a sure success. Customers trusts the brand, and these franchise businesses already done that for you, no need for you to do this because it will take a long time to earn trust from your customers.

2. Food business has a high rate of success compared to traditional business- there is 95% of success rate in a food franchising business, compared to traditional businesses only 20% of them survives in the first year of their business, almost 80% looses their business on its first year.

3. High profitability will be an assurance- in a food franchising business you can see how you earn usually within 2-3 months. Food franchising businesses already developed the right system in running and maintaining their business, they had formulated this system after so many trials and errors (you don’t need to take the risk of doing that anymore). Our new entrepreneurs that have been joining this hall of great businessmen had gone through trainings and seminar; learning from pool of great entrepreneurs.

4. Food enterprises has a strong company as its backbone, having a food venture is like leaning on a wall, you’re are sure that you are partnered with a company that is strong and capable of maintaining a good business. In this time, recession made a big impact to businesses all over the world, only strong companies remained, this is one good reason why people choose to have food franchise business; the assurance that their business will go towards the right directions.

This industry is continuously growing and it is showing a great numbers in terms of their success and revenues. High rates of success, convenience in running your business, partnership with great and experienced companies will really be an advantage of getting food franchising as your business. But you also have to be aware that there will be some companies that will take advantage of this great success. Just be vigilant in picking a food franchise business to protect yourself from illegal franchising operations.

Low-Cost Franchises Fetching High Returns

Buying a low cost franchise is a good option for those who do not have surplus capital to buy and set up a large franchise, as it needs a lot of investment in terms of fees, real estate, marketing, merchandise etc. Low-cost franchises require low initial investment of less than Rs 10 lakh. So aspiring entrepreneurs who were in a quandary due to lack of finances can take a breather and relax.

Franchising offers variety in low-cost franchises

With the evolution of franchising to its present stature, many companies have adopted the franchise route for expansion. Even small businesses which were earlier considered inapt for expansion have taken the franchise route and have tasted success in their journey. Kiosks are the best way to enter franchising in the low-cost way. Apart from taking a kiosk these are the best segments to enter franchising with low investments.

Food industry

F&B industry always gives an impression of a hefty investment for taking any franchise. However this can be quite misleading as there are few segments in this sector which require less than Rs 10 lakh investment. These are:

Juice bars and café bars:

Juice bars are becoming the in-thing with consumers becoming more health conscious. Tropical Sno, Mr Orange, Tornado Cocktails, Juice Lounge etc are some of franchised juice bars which come under low-cost. Similarly café bars have become popular with more and more people preferring to have coffees and talk. The coffee culture is sure to increase in the future as well. Brewers, Coffee Day Xpress, Cupo’ Cofe, Café Desire, etc are few franchise in low cost section.

Bakery and confectionery:

This segment also offers great avenues in fetching high profits. Brands like, Waffle Express, Chocolate Graphics, Sweet World, Muffins Bakery, are some low cost attractive options under bakery and confectionery.

Ice-cream parlours:

Kwality Wall’s, MiniMelts Ice-creams, Baskin & Robbins, Royal Ice-cream, Gelato Vinto etc are few some of the popular frozen desserts franchises.

Business Services

Business services also provide a low-investment and high- profit opportunity. Franchising in this sector is growing tremendously. Few segments are given below:

Financial services:

As long as people continue to spend money, they’ll need financial services providers to manage finances for them. Financial services franchises are the perfect opportunity for agents, brokers and real estate dealers.

Courier Services:

The typical feature of courier service includes doorstep booking, customer convenience and security of each and every consignment that has been entrusted to it. Jaguar Couriers Franchise, Blazeflash Couriers, etc are some of the franchising companies under this category.

Cartridge refilling: In the modern age of I.T, there is a constantly growing need of cartridge re-fills. A cartridge refill franchise offers to its user’s quality refills at a fractional cost. Current industry trends and future projections suggest that printer cartridges demand will continue to multiply at a very fast pace. Cartridge World, Cartridge Café, Cartridge Xpress are some of the good low-cost franchise options.

Consumer Services

Services like, dry cleaning, matrimonial alliances, tour and travels fall under this category.

Dry cleaning services have come under the fold of franchise business in the last few years, and some franchisors are: White Tiger, Wardrobe Franchise etc.

Matrimonial sites:

Matrimonial web sites like Shaadi point and Shadilagn are getting increasingly popular these days, and are offering franchise at low cost.

Travel companies:

With the economic upliftment of the common people in last two decades, the tour and travel industry has witnessed a phenomenal growth. Some of the franchisors offering low cost opportunities are East Trip Planners, Mahindra Holiday & Resorts, Arzoo.com etc.

Retail franchising

Retail sector is another low cost franchise option for aspiring franchisees.

Artificial jewellery:

It can be the best alternative to precious jewellery, if one has the interest in it. Trenz, Dia Gold, Silver Maya etc are some costume jewellery franchises.

Florist is another category calling for low investment. Ferns n petals, Florists, Fiore and many other companies are offering opportunities in setting up a florist franchise.

Before opting for any of the above options, clear all your doubts. Apart from your initial investment, take into account the ongoing costs that must be paid to your franchisor, including franchise royalties, marketing fees and other required purchases. After you are convinced go ahead and make your mark in the franchising arena!