Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of The Cleaning Authority Franchise Costs (2016 FDD)

by Franchise Chatter on October 9, 2016

in Franchise Costs, Maid Franchise



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Detailed Estimates of The Cleaning Authority Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Cleaning Authority’s 2016 Franchise Disclosure Document

  • A Conversion Business may, subject to the franchisor’s approval, use previously purchased equipment and materials, including a computer, washer/dryer, cleaning equipment, and supplies and opening inventory.

Enterprise Market

1.  Territory Fee:  $22,500 to $45,000

  • If your Territory has more than 60,000 designated households, your Territory Fee will be greater than $45,000. The Territory Fee is non-refundable. For Conversion Businesses, the franchisor may waive or reduce the Territory Fee.

2.  Initial Franchise Fee:  $20,000

  • This fee is non-refundable.
  • In consideration of the Initial Franchise Fee, the franchisor will provide you with a variety of materials, information, and insight on establishing your Business, including providing you with, among other things, Mailer Program set up for your Territory and provide (a) monthly access to The Cleaning Authority Employment Law Hotline during the term of your Franchise Agreement, (b) support prior to training, and (c) the Pre-Work Manual.
  • The franchisor also will use a portion of the Initial Franchise Fee to reimburse itself for costs associated with your attendance at the Initial Training Program.

3.  Computer:  $1,000 to $1,500

4.  Washer, Dryer, and Furniture:  $1,500 to $3,000

5.  Cleaning Equipment and Supplies:  $2,500

6.  Travel and Living Expenses While Training:  $1,500 to $2,500

  • These expenses include travel and living expense costs associated with the Initial Training Program (applicable to all franchisees) and the 3-day On-Site Training (applicable to franchisees that purchase an existing The Cleaning Authority business).
  • These fees may or may not be refundable depending upon supplier terms.

7.  Insurance and Insurance Deposits for 3 Months:  $5,000 to $7,000

8.  Opening Inventory:  $2,000 to $2,500

9.  Office Rent for 3 Months Plus 1 Month Security Deposit:  $4,800 to $8,000

  • You will need a small office of approximately 800 to 1,200 square feet for Enterprise Markets, which will serve as your employees’ “home base” and storage area for cleaning equipment and supplies, as well as other materials and equipment necessary for the operation of the Business.
  • Only the geographic location of the office needs to be approved by the franchisor. Your office must be located within your Territory.

10.  Mailer Fees (First 13 Weeks):  $12,285 to $24,570

  • Mailer Fees are due on the Wednesday for the following week for the balance of the term of the Franchise Agreement, except during any authorized mailer holiday that you select for your business.
  • The payments must be made by EFT or by such other method as the franchisor may designate.
  • For Enterprise Markets, the franchisor has assumed you will purchase mailers for 9% of the designated households in your Territory for the first 13 weeks and that you have between 30,000 and 60,000 designated households in your Territory.
  • The Mailer Fees are non-refundable.

11.  Vehicle Lease or Purchase:  $0 to $2,000

  • This estimate reflects the costs for purchasing or leasing a vehicle for a period of three months, including monthly vehicle lease or loan payments, sales tax, and title fees.
  • The low range ($0) assumes that you use your own vehicle for your Business.
  • These fees are non-refundable. For Conversion Businesses, you may be able to use a previously purchased vehicle.

12.  Additional Funds for 3 Months (excludes royalty fees):  $23,000 to $34,000

  • This estimates your initial start-up expenses as an owner-operator for the first three months. It includes such costs as incorporation, monthly online access fees to the Internet, wages (excluding any salary to you), and advertising expenses for the first three months. It does not include any royalty fees you are required to pay.
  • These figures are estimates and the franchisor cannot guarantee that your expenses won’t be higher.

13.  Total Initial Investment:  $96,805 to $152,570

  • The franchisor has used its and its predecessor’s combined 19 years of experience, as well as information it has received from its franchisees, to make these estimates.

Hometown Market

1.  Territory Fee:  $11,250 to $22,499

  • For Hometown Markets, the franchisor may finance a portion of the Territory Fee.

2.  Initial Franchise Fee:  $15,000

3.  Computer:  $1,000 to $1,500

4.  Washer, Dryer, and Furniture:  $1,500 to $3,000

5.  Cleaning Equipment and Supplies:  $2,500

6.  Travel and Living Expenses While Training:  $1,500 to $2,500

7.  Insurance and Insurance Deposits for 3 Months:  $5,000 to $7,000

8.  Opening Inventory:  $2,000 to $2,500

9.  Office Rent for 3 Months Plus 1 Month Security Deposit:  $4,000 to $6,500

  • You will need a small office of approximately 700 to 1,100 square feet for Hometown Markets.

10.  Mailer Fees (First 13 Weeks):  $6,142 to $12,285

  • For Hometown Markets, the franchisor has assumed you will purchase mailers for 9% of the designated households in your Territory for the first 13 weeks and that you have between 15,000 and 29,999 designated households in your Territory.

11.  Vehicle Lease or Purchase:  $0 to $2,000

12.  Additional Funds for 3 Months (excludes royalty fees):  $21,000 to $28,000

13.  Total Initial Investment:  $70,892 to $105,284




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