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AdvantaClean Franchise ProfileCleaning Franchises > Commercial Cleaning |
What Are the Initial Investment Requirements for an AdvantaClean Franchise?
To become an AdvantaClean franchisee, you will need to prepare for an initial investment ranging from $116,880 to $197,400. This includes a franchise fee of $5,000, along with other startup costs. Additionally, you should have a net worth between $500,000 and $1,000,000 and be ready to cover ongoing expenses such as an 8.0% royalty fee and a 1% marketing fee. Ensuring you meet these financial requirements is crucial for a successful launch.
What Is the Average Revenue Potential for AdvantaClean Franchisees?
AdvantaClean franchises have shown promising revenue potential, with an average annual revenue per unit of $365,801 and a median of $253,241. The revenue can vary significantly, with the lowest reported at $77,018 and the highest reaching $3,326,572. Understanding this revenue range can help you gauge the potential profitability of your investment and set realistic financial goals.
How Long Does It Typically Take to Break Even with an AdvantaClean Franchise?
Franchisees can expect to reach their breakeven point within approximately 12 months of opening. This quick turnaround is encouraging for new owners, as it indicates a potentially rapid return on investment. Moreover, the average investment payback period is about 24 months, which emphasizes the importance of effective management and operational efficiency to achieve these timelines.
What Are the Trends in AdvantaClean Franchise Units?
The number of AdvantaClean franchised units has seen a decline from 174 in 2021 to 101 in 2023. This trend suggests that potential franchisees should carefully evaluate the brand's market presence and growth strategies. Despite the reduction in total units, understanding the reasons behind this trend can provide insights into the company's operational focus and future opportunities in the restoration and cleaning industry.
AdvantaClean Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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AdvantaClean Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 175 | 142 | 101 |
| Net Change YoY | -33 | -41 | |
| Franchised Units | 174 | 142 | 101 |
| Net Change YoY | -32 | -41 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Franchise Overview
AdvantaClean is a leading franchise in the restoration and cleaning industry, specializing in water damage restoration, mold remediation, and air duct cleaning services. With a commitment to quality and customer satisfaction, AdvantaClean has established itself as a trusted name in the market, helping homeowners and businesses recover from unexpected disasters efficiently and effectively.
Investment Details
The initial investment to open an AdvantaClean franchise ranges from $116,880 to $197,400, with a franchise fee of $5,000. Franchisees are required to have a net worth between $500,000 and $1,000,000, ensuring that they are financially prepared to operate a successful unit. Additionally, ongoing royalty fees are set at 8% of gross sales, along with a 1% marketing fee.
Financial Performance
AdvantaClean franchise units generate an average annual revenue of $365,801, with a median revenue of $253,241. The range of revenue can vary significantly, from as low as $77,018 to as high as $3,326,572, demonstrating the potential for profitability in this sector. Franchisees typically see a breakeven point within 12 months and can expect to recoup their initial investment in about 24 months.
Franchise Growth
In recent years, AdvantaClean has experienced fluctuations in its number of franchised units. In 2021, there were 174 franchised units, which decreased to 142 in 2022 and further to 101 in 2023. This trend indicates a need for potential franchisees to carefully evaluate market conditions and support from the franchisor when considering entry into the AdvantaClean system.
Operational Insights
AdvantaClean franchisees face various operational expenses, with total annual operating costs averaging around $6,467,339. Key expenses include selling and advertising ($634,812) and operating and administrative costs ($4,872,823). Understanding these costs is crucial for franchisees to manage their financial performance effectively and ensure sustainable growth.
Support and Training
AdvantaClean offers comprehensive support and training to its franchisees, equipping them with the necessary tools to succeed in the restoration and cleaning industry. This includes initial training programs, ongoing operational support, and marketing assistance, all designed to help franchisees navigate the challenges of running their business and maximize their potential for success.
Frequently Asked Questions
The initial investment for an AdvantaClean franchise ranges from $116,880 to $197,400, which includes the franchise fee and other startup costs.