With more than 1,700 franchisees, CleanNet USA is one of the largest franchise companies in the Cleaning Industry. This cleaning brand has been on the market since 1987, which put them among the oldest companies in this business niche.
CleanNet USA franchise cost is not high, and because of this, it will be an ideal business opportunity for investors who do not have a big start-up budget.
More and more businesses are outsourcing cleaning services, so we can say that starting a CleanNet franchise in a location that is not oversaturated with other cleaning businesses can be a winning combination for all investors.
How Much Does The CleanNet USA Franchise Cost
The estimated total cost of the CleanNet USA franchise ranges between $ 18,000 and $ 46,000; this estimation includes the initial fee that each franchisee must pay. Will investment be in a lower or higher rank depends primarily on the selected initial franchise package.
However, if the investor wants to start a small business and his main goal is to become his own boss, it is best to choose the cheapest initial franchise package. With it, there is the possibility of starting a business that delivers a secure income with an investment that does not exceed $ 20,000.
There is also the possibility of financing start-up costs with the help of the CleanNet USA company. So, the investor does not need to seek third-party funding companies, which makes starting this franchise significantly easier.
The franchisee can buy cleaning work equipment directly from the franchisor or from third parties. If the franchisee buys equipment directly from CleanNet USA, the initial equipment cost will range between $ 1,500 and $ 2,000.
One of the highest CleanNet USA franchise costs is an investment in a computer system that is necessary for business operations; the cost of this computer system ranges between $ 1,500 and $ 2,000. This is a one-time cost that investors cannot bypass.
CleanNet USA franchise cost:
- Estimated total investment: $ 18,000 to $ 46,000
- Initial cleaning equipment: $ 1,500 to $ 2,000 – one time cost
- Phone: $ 120 to $ 450 – estimated cost for three months
- Business licenses / permits: $ 40 to $ 120 – yearly cost
- Computer system: $ 1,500 to $ 2,000 – one time cost
- Insurance: $ 22 to $ 600 – yearly cost
- All other starting costs: $ 1,500 – $ 3,000
CleanNet USA Franchise Fee
The one-time initial CleanNet USA Franchise fee ranges from $ 13,100 to $ 31,800. Ongoing fees are a royalty fee of 10%, an administrative fee of 5% to 10%, and an advertising fee of 1%; franchisee must pay all these fees every month.
The exact cost of these fees is determined following the gross revenue generated by the franchise unit.
Whether will be the initial franchise fee low or high depends on what type of Initial Package is selected. CleanNet USA does not offer all initial packages in all states, so you will need to research which kind of package is available in your state.
There is also the so-called Contract Negotiation Fee; this fee equals the one-month gross revenue generated by the franchisee with a cleaning contract that is closed with the franchisor’s help.
This franchisor also offers some discounts opportunities; if the franchisee pays the total initial fee cost immediately after closing the franchise agreement, it will get a 10% discount from this price.
Also, honorably discharged United States Army Force veterans have the right to a 15% discount on the Initial fee if they pay this cost in full immediately after signing the CleanNet USA franchise agreement.
CleanNet USA franchise fees:
- Initial franchise fee: $ 13,100 – $ 31,800
- Royalty fee: 10% of the gross revenue – paid monthly
- Administrative fee: 5% to 10% of the gross revenue – paid monthly
- Contract Negotiation Fee: one-month gross revenue that this contract makes to a franchisee
- Advertisement fee: 1% of the gross revenue – paid monthly
- Supply replacement fee: the actual cost of supplies + $ 50 (Administrative fee)
CleanNet USA Franchise Profit
CleanNet USA franchise profit margin is very good. After paying franchise fees, cost of supplies, and employees, the franchisee can expect that the profit margin will be 20% of the gross revenue.
Starting this franchise is really low cost when we analyze all the benefits of partnering with such a large company as CleanNet USA. The only disadvantages of this business concept are the ongoing fees, which are really high.
15% to 20% of the gross revenue will go to the franchisor’s pocket, so we need to point out this when discussing the CleanNet USA franchise profit potential. However, in exchange for paying franchise fees, the franchisee gets working contracts that would be very difficult to get as an independent business.
Also, the franchisor will share his business knowledge with the franchisee regarding all business segments. Franchisor support is significant because starting a business can be a very stressful experience.
This is an ideal opportunity for rookie entrepreneurs because the CleanNet USA franchise has a low starting cost and low business failure risk. The owner of this franchise will be able to live well without worrying that his business will fail.
The highest ongoing cost of this franchise will be employee salaries, so it is crucial to start with a small number of employees. Once you gain enough business experience, you can grow your business within CleanNet USA or even start your own independent cleaning business.
Also, it is wise to read CleanNet USA Franchise Disclosure Document before starting investing money and time in this business concept.
More and more businesses and individuals opt to outsource cleaning services. After getting knowledge about how this industry works, it will be easier to start an independent business venture. So for those new entrepreneurs in this business niche, a CleanNet USA franchise is the ideal opportunity.
CleanNet USA Review
Mark Salek founded CleanNet USA in 1987; today, they have more than 1,700 franchise units that maintain more than 35,000 locations. This company is the pioneer of the cleaning industry as we know it today.
But when we analyze the number of units in the last few years, we can see that they are in constant decline. This trend occurs because they have high ongoing fees that franchisees are required to pay each month.
This franchise is most often the choice of entrepreneurs from the United States and Canada; they are not soo widespread in the international market.
Outsourcing cleaning services is a trend that is growing the most in the US and Canada. In other countries, most companies still prefer to have their own maintenance and cleaning employees; because of that, international investors are not interested in starting a cleaning franchise.
This company is especially proud of the software that they have developed, and with it, they can monitor the efficiency and work quality of each of its franchise units. CleanNet USA has high cleaning and maintenance standards that every new franchisee must meet.
The main reason why entrepreneurs opt for the CleanNet USA franchise is the cost, which is affordable to many people. This is not a franchise that will make the franchisee a millionaire, but this is a business concept that carries a very low-risk business failure rate.
This is a good franchise opportunity for those who have always dreamed of being their own boss but have never dared to start their own small business.
Opening CleanNet USA franchise can be the first step that will move investors toward opening maybe even an independent company in the future. That is why this franchise is one of the better business opportunities.
We have presented this business opportunity from all angles; as you can see, this franchise has advantages and disadvantages that every interested investor must be aware of.
Franchising is not an ideal business model and that we all know, but If you want a franchise with low cost, good profitability, and low business failure risk, this is the option for you.
CleanNet USA franchise and other brands in this branch of business will grow more and more in the future. And because of this fact, it is wise to get involved in this industry soon as possible.