Janitorial Franchise

A janitorial franchise is a business that deals in the cleaning of commercial offices or buildings and includes the name recognition associated with quality in their field. Janitorial franchises typically include a "package" of cleaning accounts and the investment fee is directly determined by the value of those accounts. The fee is usually half the gross yearly income. For example: A fee of $10k would be required for a franchise that included $20k in cleaning service clients for the year. In additional to the initial start up fee, there may be ongoing royalty or management fees.

The parent company may or may not offer financing for the start up of this venture. However, it is best to determine if another avenue of borrowing money can be obtained before financing with the company. The interest rates for direct financing and the small print requirements may be better left unused. Banks are not as reluctant to loan money to those that are interested in opening a janitorial franchise as they are with those that desire an independent janitorial business. Janitorial franchises that have a proven track and success record, along with already contracted cleaning accounts help to guarantee repayment of the loan.

It is advised to thoroughly research a considered franchise before investing in a company. The FTC or Federal Trade Commission has required all janitorial franchises and other businesses to produce a UFOC or Uniform Franchise Offering Circular. This UFOC contains information on the principals, background, financials, and their current agreements. This circular must be made available to the public and it is highly recommended that a potential investor of a janitorial franchise carefully review this information. It is also recommended that an investor contact other owners in the chosen company to determine the positive and negative aspects of operating within that particular group.

"Hear thou, my son, and be wise, and guide thine heart in the way" (Proverbs 23:19). When gaining commercial cleaning accounts through large businesses, it is wise to be aware that the accounts are usually predetermined and chosen by the companies themselves. There may be distance traveling issues or working time conflicts. A business owner should carefully review each account before accepting them. They must read the company disclosure statement meticulously to avoid any potential disasters. It is important to understand the responsibilities and obligations of the owners of janitorial franchises. This will include knowing what types of fees are required, how much is required, and how often they are required. Understanding this information helps to create a realistic budget to adhere to and ensure success in whichever company is chosen.

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