In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Stanley Steemer franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Stanley Steemer franchise, based on Item 7 of the company’s 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Stanley Steemer franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Stanley Steemer’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• 2016 average gross sales (and number of franchisees that achieved the average sales volume or more) for Stanley Steemer Carpet Cleaner franchisees that were in operation for all of 2016 in the New England states, Mid-Atlantic states, Great Lakes states, Mid-South states, Southeast states, Great Plains states, Southwest states, Pacific Coast states, Southern states, Northwestern states, and all franchises nationwide

Section I – Background Information

11 Things You Need to Know About the Stanley Steemer Franchise

Not Just Carpet Cleaning

1.  Although Stanley Steemer is best known for carpet cleaning, the brand offers a wide range of home services. The company’s trained specialists can do natural stone cleaning, furniture cleaning, tile and grout cleaning, hardwood cleaning, air duct cleaning, area rug cleaning, oriental and fine area rug cleaning, water damage services, as well as auto, boat, and RV cleaning.

2.  All of Stanley Steemer’s services start out with a complete analysis of what needs to be cleaned and the specialists take note of any heavily-soiled or high-traffic areas on carpets and rugs. For carpets and area rugs, Stanley Steemer uses its hot-water extraction method to remove ground-in dirt and debris that customers may not have seen. The brand’s cleaning method is effective, yet gentle enough to ensure that fine area rugs don’t get damaged in the process.

3.  Stanley Steemer also uses the hot-water extraction method to deep clean furniture and also deodorizes and protects furniture after cleaning. Natural stone and hardwood floors and tile and grout are analyzed to determine the best cleaning solution. A similar hot-water extraction process is typically used to clean other types of flooring.

Offers 24/7 Emergency Water Restoration Services

4.  In addition to its other home services, Stanley Steemer offers 24/7 emergency water restoration services. The brand’s trained technicians are on call 24/7 and will typically contact a customer within 15 minutes of their initial call. The technicians will also advise homeowners on how to minimize the water damage until a crew arrives, which usually takes three hours or less.

5.  All of the company’s water restoration specialists have Institute of Inspection Cleaning and Restoration Certification (IICRC), the most widely recognized and accepted certification program in the industry.

6.  Stanley Steemer’s water restoration process is as follows:

• Extraction equipment is brought into the home to physically remove any freestanding water. Water is extracted from carpet, padding, and upholstery.
• If necessary, carpet and/or padding may be removed for proper drying.
• Professional grade drying and dehumidifying equipment is used to dry the affected areas and return the humidity levels in your home to normal. Special instruments will be used to identify hidden pockets of water.
• Proper extraction and drying techniques help minimize the possibility of secondary damage and potential microbial growth, and reduce costs.
• Stanley Steemer professionals will monitor the drying process daily, repositioning drying equipment as needed.

7.  Stanley Steemer also puts everything back in its place after the house and all of a customer’s belongings are dry. Its team will even work with customers and their insurance company to process an insurance claim.

Company History

8.  Stanley Steemer was founded in 1947 by Jack A. Bates in Ohio. To start the company, Bates invested $2,300 into a home-based carpet cleaning business. Bates started franchising the Stanley Steemer Carpet Cleaner brand in 1972.

9.  In addition to carpet cleaning services, Stanley Steemer does tile and grout cleaning, upholstery cleaning, hardwood floor cleaning, air duct cleaning, and water damage restoration. The company also sells its own line of cleaning products for home and office use.

10.  Stanley Steemer is still owned and operated by the Bates family and is currently led by the third generation of Bates. Today, there are over 290 Stanley Steemer locations in 49 states.

Entrepreneur’s Franchise 500

11.  Stanley Steemer has ranked a few times on Entrepreneur’s annual Franchise 500 list in the past 10 years. The company’s highest rank was No. 149 in 2010, while its lowest rank was No. 293 in 2011.

Section II – Estimated Costs

• Please click here for detailed estimates of Stanley Steemer franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Stanley Steemer’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

• Those Stanley Steemer Carpet Cleaner franchisees that were in operation for all of 2016 had average annual gross sales for 2016 in the amounts listed below. Stanley Steemer provided substantially the same services to all franchisees, and all franchisees provided substantially the same services to the public.

• Although franchisees operated their Stanley Steemer businesses from their homes or office warehouses, the locations of these businesses made no significant difference in gross sales.

• Franchisees use substantially the same accounting system to account for gross sales.

• The information disclosed in this Item 19 relates to the historical performance of certain franchised Stanley Steemer businesses related to carpet and upholstery cleaning services for calendar year 2016.

• The information disclosed below is solely for gross revenues for franchised Stanley Steemer businesses related to carpet and upholstery cleaning services. It does not include gross sales by franchisees related to duct cleaning services.

• No company-owned stores were included in the information disclosed below.

• These figures were obtained from gross sales reports made by franchisees to Stanley Steemer in compliance with the requirements of their Franchise Agreements that they supply these figures. These figures have been compiled from those reports in accordance with generally accepted accounting principles.

Nationwide