Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Anago Master Owners Are Not in the Cleaning Business, They Are in the Sales and Marketing Business (Q&A with Judy Walker, VP of Marketing)

by Franchise Chatter on July 20, 2012

in Commercial Cleaning Franchise, Franchise Chatter Exclusive, Q & A Interview



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Anago Cleaning Systems is a commercial cleaning franchise system supporting over 30 Master Franchisees and over 2,200 Unit Franchisees in the U.S. and internationally. Anago was ranked as the 5th Fastest Growing Franchise by Entrepreneur Magazine in 2010 and 2011. Inc. Magazine has also listed Anago as one of the top privately held companies in the U.S.

Judy Walker, VP of Marketing for Anago, has been with the company for almost 18 years, almost since its inception. She has been involved in the sale and training of every new Master Franchisee since they began franchising. Previously, Judy was Assistant Director of Sales and Marketing for Windows on the World Restaurant in New York City.

Franchise Chatter (FC):  What are some of the things that set Anago Cleaning Systems apart from other commercial cleaning franchises?

Judy Walker, VP of Marketing for Anago Cleaning Systems

Judy Walker, VP of Marketing for Anago Cleaning Systems

Judy Walker (JW):  Anago’s Master Franchises are priced very competitively at $39K, and in addition, our royalty structure is one of the most competitive in our industry. Our FDD contains a strong Item 19, which states that our Masters had an average of 27.47% gross profit for 2011, after royalty was paid to the Franchisor, which does not include down payments received for Unit Franchise purchases. We also have available territories, where most of our competitors are already sold out.



FC:  What are the roles and responsibilities of Master Franchisees and Unit Franchisees under Anago’s business model?

JW:  An Anago Master Owner is not in the cleaning business — he/she is in the sales and marketing business. A Master Owner sells Janitorial or Unit Franchises in a defined territory. Simultaneously, the Master sells cleaning contracts, business to business, within the territory and assigns them to those who purchased a Unit Franchise.

An Anago Unit Franchisee is a commercial cleaning company owner. He/she may choose to be an active participant in their cleaning business, or hire employees to do the cleaning.

FC:  What are the different revenue sources of Anago’s Master Franchisees? How do your Unit Franchisees make money and get paid?

JW:  The primary revenue stream for a Master Owner is through the sale of Unit Franchises, and the royalty and administration fees paid by the Unit to the Master.

The Unit Franchisee is a business owner, and his corporation is paid monthly on services rendered to his/her clients, minus the royalty and administration fees paid to the Master.

FC:  What qualities do you look for in a prospective Master Franchisee? How about in a prospective Unit Franchisee?

JW:  Master – Strong sales and marketing background, or a strong operations background, with the ability to manage a highly motivated staff. Also, he/she must meet the financial requirements to purchase. We look for a high energy, motivated individual who has the hunger and desire to succeed.

Unit – The desire to own their own business, and the same high energy and motivation to succeed. Industry experience is not required, as Anago will provide the Unit Franchisee with a complete orientation program on best practices for operating their own business.

FC:  Can you name a few specific things that your most successful Master Franchisees are doing that set them apart from the average performer?



Anago Cleaning Systems LogoJW:  As with any franchise, the most successful franchisees are those who follow our proven system, which will lead them to success. I believe those who are very involved in the daily operation of their franchise are the most successful.

FC:  How many employees are typically required to operate an Anago Master Franchise? Do Unit Franchisees have employees as well?

JW:  There are 3 key tasks in a Master office. The Master Owner may take one or more of these positions: Office Administrator/Customer Service, Unit Franchise Sales, and Client Sales.

The Unit Franchisee can have employees, or perform the work themselves. It’s their choice.

FC:  What can you tell us about the estimated initial investment, royalty fees, and profit potential for an Anago Master Franchise and Unit Franchise?

JW:  For a Master Franchise, the estimated initial investment, including the franchise fee, can range from $100K to $150K. Royalty to the franchisor is 6% on recurring monthly janitorial collections, and a one-time flat fee of $400 for every Unit Franchise sold. Since there are multiple revenue streams in our business model, profit potential is huge.

For a Unit Franchise, the estimated initial investment varies depending on which package is selected. The Unit also has the choice to either pay cash for their franchise, or finance. The range is $4,590 to $25,925. The higher the package selected, the higher the profit potential.

FC:  What are your growth plans for Anago in 2012 and beyond? How do you plan to scale the business to achieve these targets?

JW:  For 2012, we plan to expand to Canada, and to other markets in the U.S. We have opened 2 Masters so far this year, and expect to add 6-8 by the end of 2012. Our growth plan beyond 2012 includes adding 8-10 new Master territories per year across the U.S. and internationally.

FC:  Is there anything else you wish to share about Anago Cleaning Systems?

JW:  Personally, it has been both an honor and a privilege to have been a part of every new Master Owner’s journey to living the American dream of business ownership and financial success.

To learn more about Anago Cleaning Systems, visit their website, follow them on Twitter, and connect with them on Facebook.



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