Cleaning Franchise Quickstart Guide…
Discover How to Find & Buy the RIGHT Cleaning Franchise…
Thinking about buying a cleaning franchise? Want to know if a franchise is the right choice for you?
You’ll find all the information, answers and more in our free quickstart guide.
Independent, Impartial Advice (without the sales pitch!)
You’ll also find answers to the most commonly asked questions in our FAQ section, and a list of useful resources at the end of this guide.
Join a Growing Industry: Demand for Cleaning Services Continues to Rise
The demand for cleaning services continues to grow, and the outlook for the industry is positive.
Residential cleaning services (including carpet & upholstery cleaning) are particularly in demand as the number of dual-income, time-poor families rises. These families are choosing to use part of their income to outsource cleaning and other household ‘chores’ in order to enjoy more free time.
The internet is also helping fuel demand by making it quicker and easier to find providers and book services online.
The franchise industry in Australia is booming, and is worth over $151 billion a year. 2016 is a great time to start a cleaning business… but only if you do it the right way!
FACT: Australia is, according to Ibis World, “the most franchised nation in the world”. Australia actually has three times more franchises than the United States!
Trusted Cleaner Approved
Unfortunately, not all cleaning franchises are created equal. The best investments provide you with everything you need to get set up and earning money quickly, along with the tools and support you need to create a successful and profitable business. The bad ones don’t! We know how hard it can be to sort the good from the bad, especially when you are talking to highly trained, commission-based sales people and reading glossy marketing brochures.
That’s why we do the research: To give you the facts and help you make an informed choice.
Only the highest performing cleaning franchises are recognised as a TrustedCleaner Approved Franchisor. When you see this badge, you know this company is one of the leaders in their industry, and has been thoroughly checked, vetted and verified by an independent team.
Step 1: Is a Franchise the Right Choice for You (are you sure)?
For some people, a franchise is a great way to start and build a successful cleaning business, and there are some high quality general and specialist cleaning franchises in Australia.
However, owning a franchise is not for everyone; and in our experience is often not the right choice for people just getting started.
This is a big decision, and it’s important to take the time to make sure it’s the right one. We recommend taking a look at the pros and cons, as well as your own personality & business goals.
If you are someone who has $10,000+ to invest (the entry cost of a decent franchise) to get a proven system and support, and are happy to deal with ongoing royalties/fees, the loss of control, freedom and other restrictions that owning a franchise brings, it could be a good option for you.
However, if you want to start with a smaller budget, or would prefer to have control over the services you provide, how you market them, the prices you charge, and how quickly you can grow, then starting your own home-based cleaning business might be a better option for you.
Read our guide to starting your own profitable cleaning business here.
Let’s take a closer look at the pros and cons:
- Proven business model (usually!)
- Complete operating system (they have made the mistakes so you don’t have to!)
- Savings on tools, machinery and products due to buying power of franchise group
- Training and support provided (usually – talk to other franchisees first!)
- Existing brand (which customers already recognise) and professional marketing materials
- High upfront investment fee (minimum $5000 – usually $10,000+)
- Ongoing royalty fees and payments
- Less independence
- You are not in complete control of your business
- Contractual agreement with rules about what you can and can’t do (this can restrict creativity)
- Defined territory (which makes it harder to grow geographically)
- Harder to add new services which are not part of product mix
- Harder to sell your business
Decided a franchise could be the right choice for you?
Now it’s time to move on to step 2, and find the business opportunity to match your personality, budget and business / lifestyle goals…
Step 2: Find the Perfect Franchise (for you!)
Coming Soon! TrustedCleaner Approved:
There are over 100 different cleaning franchise opportunities available in Australia, offering a range of general, commercial and more specialist cleaning services (such as pool, mattress, oven etc.). The sheer number of options can make choosing the one that suits your budget, personality and lifestyle preferences challenging – so we’ve made things a bit easier for you!
Below you’ll find a list of companies who make the grade and meet our high standards. For each opportunity, you’ll find a detailed summary along with additional information to help you make your decision (without all the marketing hype & sales tactics you’ll see on the franchisers’ ‘sales’ websites).
Check back soon to see our shortlisted brands.
Types of Cleaning Franchise
Below you’ll find the most popular types of business, a guide to start-up costs and a couple of examples to get you started. The companies featured here all provide opportunities in Sydney, Brisbane, Melbourne and Perth, as well as many regional areas.
Step 3:
29 Essential Questions You MUST Ask
(but most people don’t!)
Your franchise is a bit like a marriage, so take your time to make sure you pick the right partner! Ask difficult questions, and do your research carefully. Credible, quality franchisors are usually happy to answer questions and provide access to current, and even past, franchisees. If you feel like they are holding something back, or being defensive – go with your gut and walk away.
NOTE: These questions are intended for general purposes only, and not intended to replace the advice of an experienced solicitor. We highly recommend consulting an expert to thoroughly check the contract before entering into any agreement.
Below you’ll find the 29 questions you should ask, but most people don’t:
Investment
- What is the total upfront investment, and what are the ongoing fees / royalties?
- What exactly do you provide for this investment (for example, some companies include machinery, tools & products, while others don’t)?
- What extra equipment, tools and machinery are required to start the business?
- How much working capital will be required to cover the initial period until the business is profitable?
- Are there any other costs or fees (for example, legal and accountants fees)?
Financing
- Do you provide help with financing (& if so, what assistance do you provide)?
Contract
- How long does the initial contract term last for?
- What are the options at the end of the contract?
- Are there any restrictions if I decide to sell my business?
- Will I get an exclusive area or territory (make sure this area is clearly defined in the contract)?
Credibility
- Are you a member of the Franchise Council of Australia and a professional cleaning association? If not, why not?
(Professional organisations and associations require their members to adhere to certain standards, and membership is a sign of a credible, professional company)
Income & Business Success
- What is your turnover rate?
- What is your failure rate?
- What is the average income of your owners?
- Do you guarantee a minimum level of income?
- How long will it take my new franchise to reach break-even?
Franchisee Satisfaction (current and past)
Get in touch with at least three current franchisees & ask them:
- If you could go back in time, would you buy the franchise again?
- What does the day-to-day running of this business involve?
- Are you satisfied with the support provided by head-office?
Also research online to see what current and past franchisees are saying. Forums and social media posts can provide a good indicator of the general level of satisfaction among business owners.
Try to get in touch with people who used to operate a franchise but no longer do. Ask them:
- Why did they decide to leave?
- What caused their business to fail (if that was the case)?
Marketing
- What marketing activities do you provide?
- Do you provide a lead generation service (& how does that work)?
- Will you conduct a marketing campaign in my area to help me launch my business?
- Do you have an online presence, and are there restrictions which would prevent me from creating my own website and promoting my business online?
Training and Support
- What initial training and support is provided?
- Do you have a programme of ongoing professional development?
- Who will I deal with on an everyday basis (make sure you have met your point of contact before signing any contract)?
FAQs
Associations & Organisations
Franchise Council of Australia
http://www.franchise.org.au/
International Franchise Association
http://www.franchise.org/
Asia-Pacific Centre for Franchising Excellence (Griffith University)
http://www.franchise.edu.au/home
Cleaning Contractors Association
http://www.cleaningcontractors.com.au/
Events
Franchising Expo
http://www.franchisingexpo.com.au/
Guides
Trusted Cleaner: How to Start a Cleaning Business
https://trustedcleaner.com.au/how-to-start-a-cleaning-business/
Victorian Government: Checklist: Buying a Franchise
http://www.business.vic.gov.au/setting-up-a-business/checklist-buying-a-franchise
Queensland Government: Guide to Choosing the Right Franchise
https://www.business.qld.gov.au/business/starting/business-startup-options/buying-franchise/choosing-right-franchise
Smart Company: The good, the bad and the ugly on choosing franchisees
http://www.smartcompany.com.au/growth/franchising/43631-the-good-the-bad-and-the-ugly-on-choosing-franchisees.html
Commonwealth Bank: Which Franchise Should You Choose?
https://www.commbank.com.au/blog/which-franchise-should-you-choose.html
Business Victoria: Checklist – Buying a Franchise
http://www.business.vic.gov.au/setting-up-a-business/checklist-buying-a-franchise
Business Structure / Tax Information
ATO Guide to Choosing the Right Business Structure
https://www.ato.gov.au/business/starting-your-own-business/choosing-your-business-structure/
Legal Information & Advice
ACCC (Australian Competition and Consumer Commission): Guide to Finance Law
http://www.accc.gov.au/business/franchising
Australian Government (business.gov.au): Contractual Advice
Raising Finance
Asia-Pacific Centre for Franchising Excellence: Sources of Franchise Finance for a Franchisee
http://www.griffith.edu.au/franchise/home/topics/buying-a-franchise-topics/franchise-finance-franchisee