I frequently get inquiries from people interested in buying a franchise of my carpet cleaning business. In fact, over the years I’ve had several offers to franchise my operations. So needless to say, I’ve really considered the pros and cons of selling and buying a carpet cleaning franchise.
Lets look at the benefits of SELLING a business franchise to begin with. If someone has a profitable carpet cleaning business and wants to expand his name on a national level, this is a win-win situation. Other then legal fees, the owner simply has to commit his overall business plan to paper, write training articles and record some basic videos promoting his style of cleaning and he’ll have a basic franchise package. The larger franchise operations usually provide reduced cost or free national advertising. In most cases the franchise will develop a chain of businesses dependent upon him for cleaning products, equipment or both. Plus, don’t forget the new franchise will usually be responsible for a certain percentage of his business sales each month as an on-going franchise fee. As I said, a win-win situation for the franchise.
Now as for the new carpet cleaning franchise buyer. The general benefits are that he gets a well-known name to market throughout his assigned geographic area. He’ll get a business plan, training, advertising information, products, equipment and a proven cleaning system. In simple terms: its an entire business package.
But the reality of the situation is that this carpet cleaning franchise comes at a high cost. Not all franchises are the same but consider some of the hidden costs that might be present.
The carpet cleaning franchise will have a business plan dedicated to that specific franchise. It will promote that cleaning system, his cleaning products, his cleaning techniques and the franchise specific equipment to the full. In most cases you will have to buy your supplies and equipment from the franchise at what they might refer to as “reduced pricing”. It might very well be reduced from list price but in 9 of 10 times you’ll find buying any tools or supplies direct from distributors or manufacturers will save you much more. But, you’ll be locked into the buying contract with the franchise.
Over the years I’ve had several guys object to my advice and buy franchise operations and without an exception, all have admitted their error after a couple years. When you are starting out, many feel they will grow a business faster by the larger name recognition of using a franchise. But even under ideal circumstances, paying a monthly fee for what ever reason, becomes a drag real fast. The other problem seldom considered is that a franchise will direct you to specific equipment purchases. Do you realize a truck mount water extractor and vehicle can run anywhere from $75,000 to $135,000. Imagine just starting to pay that off and learning that better carpet cleaners today are using new machines and cleaning systems costing a few thousand dollars. Worse yet, wait till your competition starts taking your jobs away by promoting low moisture cleaning for example. At that point, what do you do with a truck costing you the price of a mortgage each month?
Okay, that is an extreme example but this has happened and is still happening. Carpet cleaning technology has changed drastically in the past few years and all for the better. When you are locked into certain equipment or business franchises, you are stuck.
I always encourage a person to remember why he or she wants to start a business. You want to be independent, offer the best possible service and provide complete customer satisfaction. You’ll find that is very difficult to achieve when operating a carpet cleaning franchise. I suggest following a good carpet cleaning business plan which will explain the secrets behind this business and then buy equipment and provide services that are best for you and your clients. Don’t worry about competing with big name franchise cleaners. I’ve done it for decades and their standard level of service has steadily provided me with a good income.
Doc has been working in various areas of home maintenance for over 40 years now. He has business start-up guides for the carpet cleaning, power washing and house painting businesses and more. Learn to be profitable working a "real" business from your home.
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