Wednesday, January 12, 2011

Start a Cleaning Business Franchise Or Go Independent?

Franchising is generally not as strong in the US cleaning industry compared to other industries with most cities having markets made up of around 10% franchisees and 90% small independent operators.
With a franchise you will be investing in a proven system that can increase your chances of succeeding in the cleaning business. However a franchise can also limit your growth as you become more established and some can bleed you dry financially.
This article sets out some of the advantages and disadvantages of cleaning business franchises.
A franchise can offer you great early support during the set up phase and in your first year or so in business. Business owners with little experience basically get a full business start up kit, often with equipment, training and marketing assistance. Independent operators have to go it alone and could struggle with many aspects of the business during this early phase of the business lifecycle.

For independent operators, related experience and possibly some mentoring would come in handy along with extensive research into the industry.
Another great thing about a franchise is that it comes with a brand. Customers will immediately recognize the name and if your particular franchise has a good reputation (check this out beforehand) then you can easily win clients based on name recognition.
Franchises of course come with an expensive price tag. As a franchisee you will be locked into a deal with ongoing obligations in terms of having to pay ongoing fees and having to buy supplies from your franchiser or their affiliates. In the early stages of your businesses life when your cash flow is limited it may be more cost effective to invest the limited funds that you have in your own independent business instead of handing them over to another company.
A franchise can also limit your growth in the future as they place so many restraints on what your business can do. While independent operators have the freedom to do whatever they like, some franchisees may miss out on opportunities due to restraints placed upon them by their franchise agreement.
Going the franchise route offers no guarantee of success. Franchises fail all the time although overall they do offer entrepreneurs a slightly higher chance of success.
One common complaint of franchisees that have failed is that the franchiser opened too many competing franchises in the area. There are many businessmen who have been dissatisfied with their experience operating a franchise and you can find plenty of negative first hand experiences on the Internet.
In making the decision to take the franchise route or not give some thought to the market areas that you want to get into and their complexity. Basic household or office cleaning should be pretty straightforward and unless you are interested in entering more complex markets such as industrial cleaning then you will be pretty safe taking the independent route.

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