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The Cleaning Authority Franchise ProfileCleaning Franchises > Residential Cleaning |
What Are the Initial Investment Requirements for The Cleaning Authority Franchise?
To open a The Cleaning Authority franchise, you will need to consider a range of initial investment costs. The total investment can vary from $82,462 to $172,654, which includes a franchise fee of $20,000. Additionally, you should have cash readily available between $82,462 and $132,027, along with a net worth requirement ranging from $250,000 to $500,000. These figures are essential for aspiring franchisees to ensure they are financially prepared to embark on this business journey.
What Are the Financial Performance Metrics for The Cleaning Authority Franchise?
The Cleaning Authority franchise has demonstrated promising financial performance metrics. The average annual revenue per unit is approximately $1,289,787, with a median revenue of $1,257,449. Interestingly, the lowest annual revenue recorded is $153,768, while the highest reaches an impressive $4,671,476. This wide range highlights the potential for profitability, but also underscores the importance of location and management in achieving success.
What Are the Ongoing Fees and Costs Associated with The Cleaning Authority Franchise?
Franchisees of The Cleaning Authority should be aware of ongoing fees, which include a royalty fee of 6% of gross sales and a marketing fee that ranges from 9% to 13%. These fees are critical for maintaining brand presence and ensuring effective marketing strategies. Additionally, franchisees should anticipate various operational expenses, with an average total running expense of about $68,377 annually, covering costs such as rent, utilities, and employee salaries.
How Quickly Can You Expect to Break Even with The Cleaning Authority Franchise?
Franchisees can expect to break even within approximately 12 months of operation, a relatively swift timeline that reflects the demand for cleaning services. The investment payback period is estimated at 21 months, allowing franchisees to recover their initial investment and start generating profits in a reasonable timeframe. This quick return on investment can be an attractive aspect for potential franchise owners considering entering the cleaning industry.
The Cleaning Authority 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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
The Cleaning Authority Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 212 | 221 | 224 |
| Net Change YoY | 9 | 3 | |
| Franchised Units | 209 | 218 | 221 |
| Net Change YoY | 9 | 3 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Cleaning Authority franchise requires a low to moderate initial investment, ranging from $82,462 to $172,654. This includes a franchise fee of $20,000. Potential franchisees should also be prepared for ongoing costs, including a royalty fee of 6% and a marketing fee that can range from 9% to 13% of gross sales.
Financial Performance
Franchisees can expect an average annual revenue of approximately $1,289,787, with a median revenue of $1,257,449. The highest annual revenue reported per unit is $4,671,476, showcasing the potential for strong financial performance within the franchise model.
Breakeven and Payback
The Cleaning Authority offers a relatively quick path to profitability, with most franchisees reaching breakeven within 12 months. Investment payback is typically achieved in about 21 months, making it an attractive opportunity for those looking to recoup their initial investment swiftly.
Franchise Growth
The Cleaning Authority has shown steady growth in its franchised units, increasing from 209 in 2021 to 221 in 2023. This growth reflects the brand's strong market presence and the increasing demand for residential cleaning services, positioning franchisees for success in a growing industry.
Operational Expenses
Franchisees should anticipate average annual operating expenses of around $68,377. Key expenses include office rent, utilities, insurance, and marketing fees, which are crucial for maintaining business operations and driving customer engagement.
Required Financials
To qualify for a franchise, potential owners must have a net worth between $250,000 and $500,000, with cash reserves ranging from $82,462 to $132,027. This financial requirement ensures that franchisees have the necessary resources to support their business and navigate the initial stages of operation successfully.
Frequently Asked Questions
The initial investment for a The Cleaning Authority franchise ranges from $82,462 to $172,654, which includes the franchise fee of $20,000.