Detailed Estimates of Stanley Steemer Franchise Costs Based on Item 7 (Estimated Initial Investment) of Stanley Steemer’s 2016 Franchise Disclosure Document
- All figures in Item 7 are estimates only and, except as noted below, are not refundable. Actual costs will vary for each franchisee and each location depending on a number of factors.
1. Initial Franchise Fee: $20,000 to $100,000
- In order to acquire a Stanley Steemer Carpet Cleaner franchise, you must pay Stanley Steemer an initial franchise fee. The amount of this fee will be negotiated between you and Stanley Steemer. Typically, the range of initial franchise fees charged to franchisees is $20,000 to $100,000.
- The initial franchise fee can be paid in a single lump sum payment or can be financed under either one of two plans offered by Stanley Steemer.
2. Real Property: Amount Not Specified
- The size of business facility you need will depend upon the size of your area, the number of Stanley Steemer vehicles you have, and your business plan. If you are starting out with one Stanley Steemer vehicle, the franchisor strongly recommends that, initially, you use your place of residence as your office.
- If your residence is not used, a small office/warehouse may be leased at a cost which should range from $1,000 to $3,500 per month, payable to the landlord on terms negotiated by you and the landlord.
- If you need a larger facility, your rent will vary based upon the size of your facility. Rents also vary significantly from one area of the country to another.
- Stanley Steemer gives its franchisees a wide range of choices in locating their offices. Generally, your office must be located within your geographic area so as to allow you to provide services to customers in your area efficiently and conveniently, so you will want to locate your office relatively close to residential areas.
- If you lease space for your office, you may incur some buildout expenses. Depending on the terms of your lease, you may also incur real estate broker fees, prepayment of the last month’s rent, common area maintenance fees, operating fees, or other expenses.
- Stanley Steemer is unable to estimate your expenses for buying or leasing land and constructing a building, as these costs vary widely based upon factors such as location, design of the building, method of construction, and cost of materials.
3. Stanley Steemer Carpet Cleaning Machine and Accessories: $23,800 to $27,500
- This estimate is for one Stanley Steemer Carpet Cleaning Machine and accessories (Series #5700 Unit).
4. Stanley Steemer Vehicle: $27,000 to $29,000
- You must purchase one or more Stanley Steemer vehicles for use in your operation of your Stanley Steemer Carpet Cleaner business. The number of Stanley Steemer vehicles will be agreed to by you and the franchisor based upon the size of your area and your business plan.
- Typically, a single Stanley Steemer vehicle is sufficient for a new franchisee, but additional Stanley Steemer vehicles may be required.
- The estimate provided in this Item 7 is based on Stanley Steemer’s experience operating and franchising Stanley Steemer Carpet Cleaner businesses.
5. Total for Stanley Steemer Vehicle (as equipped): $50,800 to $56,500
6. Water Restoration Equipment: $5,000 to $25,000
7. Sufficient Supply of Cleaning Products Required to Commence Operation: $2,500 to $3,500
- You will need an initial supply of cleaning products in order to commence operation of your Stanley Steemer Carpet Cleaner business. The estimated cost presented above should cover approximately 3 months of operation.
- All supplies and inventory must meet Stanley Steemer’s standards and specifications.
8. Telephone Deposit: $0 to $125
- The estimate presented above includes deposits which may be refundable to you at a later time.
9. Comprehensive Liability Insurance (per year): $3,000 to $7,000
- Insurance costs may vary in different localities. The estimate is for one year of liability insurance coverage, including automobile coverage. If you have employees, you may incur expenses for workers’ compensation insurance.
- Stanley Steemer is unable to estimate the amounts that you may be required to spend for workers’ compensation insurance. The requirements and rates vary widely from place to place.
- Stanley Steemer reserves the right to require you to obtain additional types of insurance coverages, as provided under the Franchise Agreement.
10. PowerMagic System License Fee: $1,500
11. Computer Equipment: $1,250 to $3,500
- The type and quantity of computer equipment you need will depend on the size of your area and your business plan. A typical single user system generally ranges from $1,250 to $3,500.
- The fee for hardware set-up/conversion is $495 per person per day.
12. Advertisement in Yellow Pages: $600 to $7,000
- You are required to maintain a separate telephone number or numbers for your Stanley Steemer Carpet Cleaner business in Stanley Steemer’s name, and to maintain a listing for your Stanley Steemer Carpet Cleaner business in telephone directories in your franchised area (including, but not limited to, the Yellow Pages) as required and prescribed by the franchisor in the Manuals.
- The cost of these advertisements varies considerably in accordance with the charges established by local telephone companies and Yellow Page publishers.
13. Internet Connection: $40 to $200
14. Media Advertising: $8,500 to $14,000
- The range of expenditures presented above represents average numbers based upon most start-up franchises. However, media advertising expenses can vary considerably from area to area based upon the size of the area, the types of media available, and other factors.
15. Travel, Room, and Board to Attend Training Program (depending on distance to Ohio): $500 to $2,000 per person
- The range of estimates presented above reflects that transportation expenses will vary according to distance and mode of transportation.
16. Additional Funds for 6 Months of Operation: $10,000 to $30,000
- This is an estimate only of the range of initial start-up expenses that you may incur. The estimate of additional funds is based on an owner-operated business and does not include any salaries or benefits for employees or any allowance for an owner’s draw.
- The estimate is for a period of 6 months. Stanley Steemer estimates that, in general, a franchisee can expect to put additional cash into the business during the first 3 to 9 months, and sometimes longer, but it cannot estimate or promise when, or whether, any individual franchisee will achieve positive cash flow or profits.
17. Total (does not include real estate costs): $103,690 to $250,325
- You may finance all or part of the initial investment. Stanley Steemer does not, however, make financing available to you for any obligation except, in certain circumstances, the initial franchise fee.