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 2018 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 2018 FDD
- Section IV – Number of franchised and company-owned Stanley Steemer outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Stanley Steemer’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 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 2017 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
Launches Holiday Sweepstakes
1. On November 19, 2018, Stanley Steemer launched a holiday sweepstakes where the grand prize is a $500 gift card good toward the brand’s services. New and existing customers were invited to simply fill out a form to be entered into the contest. The entry period ran until December 15.
2. Entrants were asked to submit their name, email address, and ZIP code, and could also opt-in to receive the latest cleaning tips, promotional offers, and more from Stanley Steemer. The brand also sent each entrant eight tips and tricks to help get their home ready for the holidays.
Florida Franchisee Wins Company’s Top Award
3. In March 2018, John Peters and his wife Susan, the franchisees of Stanley Steemer in Polk County, Florida, received the company’s top honor, the Jack Bates Award, named after the founder of Stanley Steemer. Their operation was selected over the other 300 franchises and 80 corporate stores for the elite honor.
4. John Peters has worked for Stanley Steemer for decades. He started out with a corporate Stanley Steemer store in Ohio in 1986 and quickly moved from cleaning carpets in Ohio to managing the company’s Lexington, Kentucky store. Peters was fortunate enough to have met founder Jack Bates in 1993 at a company gathering. According to Peters, “He was a very commanding man. When he came in a room, everybody knew he was there. But he was very real, too. He was interested in what you had to say, and I am proud that I actually got to meet him. Those were beautiful moments.”
5. Peters sailed through the management of company-owned operations and left the corporate stores in 2000, when he gave up managing the Tampa Bay area operations to own the franchise in Polk County. He added, “The opportunity presented itself, and we took it. And we’re happy we did. Jack Bates had a love for the company he started and that was a common thread with us. I love it too and so does Susan. That’s how it is with us. Mr. Bates was kind of like your father — you just didn’t want to let him down.”
6. In two years at the Lexington store, Peters took it from $1 million in sales annually to $1.5 million. In two years with the Tampa region, he raised revenues from $2 million annually to $2.5 million. That’s when the opportunity arose to purchase the Polk County franchise. Peters said the Polk franchise had been in place since the 1970s but under his family’s ownership for 18 years. He said that within that time, sales have quadrupled.
7. Stanley Steemer in Polk County now has 30 full-time employees and Peters recently updated all the company vehicles and moved into new offices. According to Peters, the secret to his success “is that I am always here. I work every day and make sure our customers are pleased with the services we provide them.”
8. While Peters tackles the operations, Susan handles the administrative side. He said, “She takes care of the books, the office operations and business side, while I handle the hiring, make sure my people have the newest and best equipment and materials and see that customers are happy with their service. I feel like it’s my job to take care of my people as well as my customers. I believe my people need to know they are successful and that they are good at what they do. They also need to know that we do what is right. I’ve lived by that, doing what’s right.”
9. Stanley Steemer was founded in 1947 by Jack A. Bates in Dublin, Ohio. Bates started his own carpet cleaning business when he invested $2,300 into a home carpet cleaning company and initially called it Jack Bates Carpet Cleaning. When Bates operated the carpet cleaning equipment, the steam reminded him of old steam-propelled automobiles, which were known as Stanley Steamers, manufactured by the Stanley Motor Carriage Company.
10. Over the next few decades, Bates continued to grow Stanley Steemer and started franchising the concept in 1972. Growth continued into the 1980s and in 1988, Stanley Steemer introduced Stanley Steemer Duct Cleaning Service as an add-on license. Since then, Stanley Steemer has kept on growing across the United States. Today, Stanley Steemer is still owned by the Bates family and is being run by the third generation of Bateses.
Entrepreneur’s Franchise 500
11. Stanley Steemer did not rank on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Stanley Steemer franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 211
- Outlets at the End of the Year: 209
- Net Change: -2
- Outlets at the Start of the Year: 209
- Outlets at the End of the Year: 206
- Net Change: -3
- Outlets at the Start of the Year: 206
- Outlets at the End of the Year: 205
- Net Change: -1
- Outlets at the Start of the Year: 63
- Outlets at the End of the Year: 64
- Net Change: +1
- Outlets at the Start of the Year: 64
- Outlets at the End of the Year: 63
- Net Change: -1
- Outlets at the Start of the Year: 63
- Outlets at the End of the Year: 61
- Net Change: -2
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- Those Stanley Steemer Carpet Cleaner franchisees that were in operation for all of 2017 had average annual gross sales for 2017 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 2017.
- 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.