Franchise Costs: Detailed Estimates of The Cleaning Authority Franchise Costs (2020 FDD)

Updated October 5, 2020.

Detailed Estimates of The Cleaning Authority Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Cleaning Authority’s 2020 Franchise Disclosure Document

Enterprise Market

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

• Amount varies as disclosed in Item 5. If your Territory has more than 60,000 Designated Households, your Territory Fee will be greater than $45,000.

2.  Franchise Fee:  $20,000

• The Franchise Fee is a one-time payment, due upon signing the Franchise Agreement.

3.  Computer Including Training Software Access Fee:  $1,750 to $2,750

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 Franchised Business.

• Office rentals will vary; you should consult a local real estate expert.

• Your office must be located within your Territory.

10.  Local Marketing Fees (First 13 Weeks):  $13,022 to $26,044

• For Enterprise Markets, the franchisor has assumed you will purchase marketing pieces 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.

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

• This estimate reflects the costs for purchasing or leasing a vehicle for a period of 3 months, including monthly vehicle lease or loan payments, sales tax, and title fees.

• The low end of the range ($0) assumes that you already have a vehicle that meets the franchisor’s requirements.

12.  Full-Time Manager Salary for 3 Months:  $0 to $13,750

• The low estimate assumes that the principal Owner of the Franchised Business will devote full working time to the supervision and management of the Franchised Business.

• The high estimate assumes that the franchisor has consented to the supervision and management of the Franchised Business by a qualified, full-time manager whom you hire and who successfully completes all training the franchisor requires.

• The high estimate is for 3 months’ of salary for the approved manager.

13.  Additional Funds for 3 Months:  $27,000 to $34,000

• This is an estimate of additional funds you may need during the initial period of operation of the Franchised Business, which the franchisor defines as 3 months from opening.

• It includes such costs as incorporation, monthly on-line access fees to the Internet, employee recruitment costs, and employee wages (excluding any salary to you and any salary to an approved, full-time manager of the Franchised Business) and advertising expenses for the first 3 months. It does not include any royalty fees you are required to pay.

• These figures are estimates and the franchisor can’t guarantee that your expenses won’t be higher.

14.  Total:  $101,572 to $169,044

• The franchisor has used its and its predecessors’ combined 20 years of experience, as well as information it has received from its franchisees, to make these estimates.

• Costs will vary depending upon a number of factors. There is no assurance that your experience will correspond with these cost estimates.

Hometown Market

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

2.  Franchise Fee:  $15,000

3.  Computer Including Training Software Access Fee:  $1,750 to $2,750

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, 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 Franchised Business.

10.  Local Marketing Fees (First 13 Weeks):  $6,511 to $13,022

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

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

12.  Full-Time Manager Salary for 3 Months:  $0 to $13,750

13.  Additional Funds for 3 Months:  $25,000 to $28,000

14.  Total:  $76,011 to $121,021