In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on The Cleaning Authority franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Cleaning Authority franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of The Cleaning Authority’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 total actual gross revenue; average gross revenue; total number of customers; average price per clean; total number of cleans performed; average cost of goods sold; average customer loss; total estimate calls and total estimate appointments, and conversion percentages; total sales made to new customers, and conversion percentage; estimated total number of employees; and average Territory size for the period January 1, 2015 through December 31, 2015 (the “Accounting Period”) for the 167 franchised and 1 affiliate-operated Cleaning Authority businesses that were operating for the entire period January 1, 2015 through December 31, 2015
- 2015 and 2014 average, high, and low gross revenue for the 167 franchised and 1 affiliate-operated Cleaning Authority businesses that were operating for the entire period January 1, 2015 through December 31, 2015, and for the 165 franchised and 1 affiliate-operated Cleaning Authority businesses that were operating for the entire period January 1, 2014 through December 31, 2014
Section I – Background Information
The Cleaning Authority got its start back in 1977 in the Baltimore-Washington metropolitan corridor, and was one of the first whole-house cleaning services in that region.
Steve Robinson and Tim Evankovich bought the company in 1989 because they could see the strong potential it had to grow and thrive. After honing its approach and methods, they started franchising the concept in 1996 as an environmentally-friendly home cleaning operation offering green cleaning products, HEPA vacuum filters, and specialized dusting cloths.
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It currently operates a total of 195 locations throughout North America.
The company’s success attracted the attention of investors, and The Cleaning Authority was acquired in 2015 by PNC Riverarch Capital. Steve Robinson continues his leadership of the company on the board of directors.
Here’s how The Cleaning Authority keeps things spic and span in the competitive home-cleaning segment:
A Wide Range of Services
Besides basic apartment and home cleanings, the company offers an array of supplemental and add-on services, including carpet cleaning, clean up after remodeling, post-construction cleans, basement cleaning, commercial and office cleaning, housekeeping, move in/move out cleaning, one-time cleans, oven cleaning, and more.
More and more people want an eco-friendly clean, and The Cleaning Authority does that as well, using only environmentally-responsible or sustainable cleaning products.
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There are three different certifications that the company uses: Green Seal (third-party certification of sustainability standards), Ecologo (third-party certification for reduced environmental impact), and EPA Safer Choice (products carrying the Safer Choice label have safer chemical ingredients without sacrificing quality or performance).
Detail-Clean Rotation System
The company’s approach divides initial detail cleaning over two sessions. The first clean includes the more thorough detail-clean in the kitchen and bathrooms, while the rest of the dwelling gets a regular clean. The second clean involves the detail-clean on sleeping and living areas, and once again a regular clean on the rest.
Using this method, everything gets cleaned on each visit, but certain designated areas receive extra-thorough cleaning as well.
A Strong Value Proposition
Most people have a very good sense of how much time it takes to clean a home and keep it clean. It’s not a small effort. The Cleaning Authority makes the most of this point with its main marketing slogan: Life’s Too Short to Clean Your Own Home, capitalizing on the fact that nearly everyone feels they have things that are far more important to them that they’d rather be doing.
Customer Satisfaction Commitment
The company says consumer satisfaction is 100% guaranteed, but it doesn’t back that up with a money-back guarantee. It does argue that its superior methods, highly trained cleaners, and inspections by manager are what ensure its 100% satisfaction guarantee.
Section II – Estimated Costs
- Please click here for detailed estimates of The Cleaning Authority franchise costs, based on Item 7 of the company’s 2016 FDD.