Is a Cleaning Franchise Worth It? Key Insights for Aspiring Entrepreneurs

1. Start a reputable business

It’s not easy starting a new business in your area. You need to spend time building trust and a good reputation, which can mean a slow start to your cleaning business.

Franchises are often established brands with recognizable names that customers already trust.  This gives you a competitive edge in the market over new unknown cleaning businesses, as customers are more likely to already view your business as a cleaning authority.

2. Hit the ground running

Franchises usually have a tried-and-true business model, such as charging per cleaning service instead of per hour or standard house cleaning checklists for consistency. 

With a business model ready to go, you’ll spend less time trying to figure out what works best for your business and can focus on building customer relationships.

3. Save on some of the startup costs

Starting a new cleaning business requires startup costs such as marketing materials and supplies. Aside from costs, sourcing these items and materials takes time and research.

Franchisors typically provide initial materials, as well as training and ongoing support, so you can spend more time strategizing. 

1. High franchise fees

A franchise fee is a charge that the franchisee pays the franchisor for the right to enter into a franchise agreement.

Depending on the brand, franchise fees can be significant. While there are some low-cost franchises, you can expect to pay an average range of $20,000 to $50,000. You may have to depend on franchise financing from banks or other lenders to get started. 

In addition to initial franchise fees, you may have to pay ongoing fees such as royalty fees (paid for the ongoing use of the brand’s trademark) or marketing fees. With these fees, it may take longer to make your cleaning business profitable.

2. Limited flexibility

Franchises often have rules and regulations you have to follow, which can be found in a franchise disclosure document. For cleaning companies, this might mean limiting your fee structure or controlling the types of cleaning supplies you use. The lack of flexibility makes it hard to pivot and innovate your business, especially as it grows. 

For example, if you are running a residential cleaning business and want to expand to commercial cleaning services, you’ll have to check if that’s permitted.

3. Market saturation

Some of the best franchises are also the most popular, such as Vanguard Cleaning Systems. Your region might already be saturated with several cleaning business franchisees, which would make it harder for your business to stand out. 

Customers might have difficulty distinguishing between your cleaning company and another one under the same franchise.

Pro Tip: Consider talking to a franchise consultant and a lawyer before investing in a cleaning business franchise. 

Lower initial investment

Starting a cleaning company generally has lower start-up costs compared to other home service businesses. “You can start your own cleaning business with under $500,” says Clover Hubbard, owner of Love Green Clean.

Starting your own cleaning business can save you money. It allows you to avoid franchise fees and royalties, minimize costs, and scale up gradually.

Complete control and flexibility

Franchise business owners are restricted by the rules and regulations of the franchisor, which leaves little room for creativity.

When you start your own cleaning company from scratch, you have complete freedom to bring your cleaning business ideas to life. 

Starting your own cleaning company lets you make decisions about key elements of your business, such as:

• Branding: Choose a cleaning company name and logo that suits your vision.
• Operations: Set your own policies, cleaning services, and operational procedures.
• Pricing: Control pricing structures based on your market research and financial goals.

Retain full profit

Running a successful cleaning business is hard work, so it may feel unfair when you have to pay royalties to a franchisor every month.

When your cleaning company is yours and yours alone, all profits belong to you. That means you can decide whether to spend that profit or reinvest it back into your business.