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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Stanley Steemer’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, highest, and lowest 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 2019 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
17 Things You Need to Know About the Stanley Steemer Franchise
Remains Open to Serve Critical Cleaning, Disinfection, and Restoration Needs of Residential and Commercial Customers
1. In March 2020, when the ongoing COVID-19 pandemic first became serious in the United States, Stanley Steemer assured customers that it was still open to serve the critical cleaning, disinfection, and restoration needs of its residential and commercial customers.
2. According to a Stanley Steemer statement, “During these uncertain times, we continue to safely operate as an essential business under guidance issued by the U.S. Department of Homeland Security, Cybersecurity, and Infrastructure Security Agency (“CISA”). The Memorandum on Identification of Essential Critical Infrastructure Workers, which provides guidance to both State and Local jurisdictions, and the Private Sector defines Essential Critical Infrastructure Workers in the Public Works Section as: ‘Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of residences.’”
3. Stanley Steemer continued, “Stanley Steemer Technicians are Essential Critical Infrastructure Workers within CISA’s guidance as they are critical to the provision of services for the necessary maintenance, cleaning, and sanitation of environmental surfaces found in residential, commercial, and institutional environments. Furthermore, we understand that many of our Customers have questions about our services and the steps we are taking to ensure their safety and that of our employees. Our teams are actively monitoring communications from the Centers for Disease Control and Prevention (“CDC”), the World Health Organization (“WHO”), and federal agencies to ensure we are operating consistent with the latest guidance to contain the spread of SARS-CoV-2 , the cause of COVID-19.”
4. “According to the CDC, cleaning is the necessary first step of any disinfection process. Cleaning removes organic matter, salts, and visible soils, all of which interfere with microbial inactivation. The physical action of scrubbing with detergents and surfactants and rinsing with water removes substantial numbers of microorganisms. If a surface is not cleaned first, the success of the disinfection process can be compromised. For more information about the critical importance of cleaning, we encourage you to visit the CDC for more information on Environmental Cleaning and Disinfection Recommendations for schools, daycare centers, offices, and other facilities,” continued Stanley Steemer.
5. The brand further elaborated on the changes it has made to assure it is following all guidelines. Stanley Steemer said, “As Your Partner in Clean, we are prepared and uniquely equipped to assist our Customers with the cleaning of virtually all environmental surfaces.” Below are the latest updates on what Stanley Steemer is doing to ensure customers’ safety and to do its part in attempting to contain the spread of COVID-19:
- New Cleaning Product – Stanley Steemer has introduced a new cleaning product (at participating locations) into all of its standard cleaning processes. This product is an EPA Registered Antimicrobial Disinfectant that meets the EPA’s criteria for use against SARS-CoV-2 when used on hard/non-porous surfaces like tile, wood, laminates, vinyl, linoleum, and stone. This product has also been demonstrated to be a highly effective cleaner of soft/porous surfaces – including carpet, rugs, and upholstery – when used in connection with Stanley Steemer’s proprietary and industry-leading cleaning equipment.
- Disinfection Wipe Down – Stanley Steemer now cleans all environmental surfaces (at participating locations) with an EPA Registered Antimicrobial Disinfectant that meets the EPA’s current criteria for use against SARS-CoV-2. In residential settings, Stanley Steemer can disinfect hard/non-porous surfaces such as railings, counter tops, knobs, door handles, tables, and other high-touch areas.
- Equipment Disinfection Protocol – Stanley Steemer has also enhanced its Equipment Disinfection Protocol with the introduction of an additional EPA Antimicrobial Registered Disinfectant which also meets the EPA’s criteria for use against SARS-CoV-2 and other emerging viral pathogens. All cleaning equipment is thoroughly cleaned and disinfected after every job for the health and safety of Stanley Steemer’s employees and to limit any risk of transfer. This process is repeated at the end of each workday along with a complete cleaning and disinfection of its service vehicles.
- Employee Training and Personal Protective Equipment – Stanley Steemer has trained its employees on maintaining appropriate social distance throughout the workday and the critical importance of personal hygiene with a specific emphasis on handwashing before, during, and after all jobs. The brand also provides its employees with the appropriate Personal Protective Equipment (“PPE”) where necessary so they can perform their work safely and with confidence.
- Emergency Paid Sick Leave – Stanley Steemer has instructed all employees to remain home if they are sick or feeling ill. As an additional incentive to observe these instructions, company-owned locations have implemented an Emergency Paid Sick Leave Policy (“EPSL”) for all of the brand’s field-level employees to provide additional paid sick leave benefits so its people never have to choose between a paycheck and everyone’s collective health and safety.
Franchisee Performs Free Disinfection Service While Nonprofit Is Closed
6. In late March 2020, while many businesses were closed due to the COVID-19 lockdown, Stanley Steemer of South Florida offered its disinfection and air duct cleaning services for free to the Achievement Centers for Children & Families, a Delray Beach nonprofit organization that helps under-resourced children with educational growth, skill building, and healthy lifestyles.
7. Normally, the organization operates as an after-school program and early learning center for the underserved, but since its doors closed due to the coronavirus outbreak, its three-building campus has been operating as a free food distribution center for its 400-plus families.
8. Mike Scalera, director of business development for Stanley Steemer of South Florida, said, “We’d actually reached out to the Achievement Center before the virus outbreak to offer our air duct and other disinfecting services, part of our ongoing efforts to give back to the community. But since the center is no longer operational due to recent events, and is instead being used to distribute food to those who need it, this turned out to be perfect timing.”
9. Here’s how Stanley Steemer’s process works: A powerful disinfectant that contains, among other agents, an anti-viral solution, is sprayed on objects and surfaces with a force 75 times as powerful as the force of gravity. “This allows the chemical to bend around the object you are spraying so that you get 100 percent coverage. This is much more efficient and effective than using a normal sprayer,” Scalera said.
10. Stanley Steemer not only cleaned the areas that will be used for food distribution, but it also sterilized the entirety of the center and plans to return for an air duct cleaning. “When the doors reopen, families can be confident that their kids will be walking into a building that is clean,” Scalera said. While no studies have proven that this disinfecting regimen destroys the novel coronavirus strain, it has been proven effective in eliminating the previous two strains of coronavirus, said Scalera.
11. Stephanie Seibel, the center’s CEO, added, “Right now, we are keeping our staff employed while also providing hunger relief for our families. Health is of the highest priority at our center — in these times and all the time. We feel very fortunate that such a trusted organization would reach out to us to fulfill this need at this time.”
12. Stanley Steemer was founded in 1947 by Jack A. Bates in Columbus, Ohio. Bates invested $2,300 into opening a one-man carpet cleaning business he dubbed The Jack Bates Carpet Cleaning Company. Bates’ services were in high demand and he spent the next few decades growing his business.
13. By the early 1970s, Bates developed the first prototype steam cleaning machine, the Stanley I. When operated, the equipment reminded Bates of the Stanley Motor Carriage Company’s steam-powered automobiles – colloquially called Stanley Steamers. In 1972, Bates decided to start franchising the concept and renamed the company Stanley Steemer and the brand’s now-iconic yellow-orange branding was born.
14. The Stanley Steemer research and development department launched the famous truck-mounted dual wand cleaning machine in 1976. Over the next few decades, Stanley Steemer continued to grow around the U.S. and made further innovations.
15. Jack Bates stepped down in 1985 and his son, Wesley Bates, took over as president and CEO. Air duct cleaning, tile and grout cleaning, and off-site Oriental and fine area rug cleaning were added to Stanley Steemer’s menu of services over the years.
16. In 2017, Stanley Steemer celebrated its 70th anniversary with 300 locations open across 49 states. The Bates family continues to own and operate Stanley Steemer.
Entrepreneur’s Franchise 500
17. Stanley Steemer ranked No. 93 on Entrepreneur’s 2020 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- 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: 205
- Outlets at the End of the Year: 215
- Net Change: +10
- Outlets at the Start of the Year: 215
- Outlets at the End of the Year: 214
- Net Change: -1
- Outlets at the Start of the Year: 63
- Outlets at the End of the Year: 61
- Net Change: -2
- Outlets at the Start of the Year: 61
- Outlets at the End of the Year: 54
- Net Change: -7
- Outlets at the Start of the Year: 54
- Outlets at the End of the Year: 55
- Net Change: +1
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- Those Stanley Steemer Carpet Cleaner franchisees that were in operation for all of 2019 had average annual gross sales for 2019 in the amounts listed below.
- As used in this Item 19, gross sales means the total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns.
- Although franchisees operated their Stanley Steemer businesses from their homes or office warehouses, the locations of franchisees’ offices made no significant difference in gross sales.
- Stanley Steemer provided substantially the same services to all franchisees, and all franchisees provided substantially the same services to the public. 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 franchised Stanley Steemer businesses related to carpet and upholstery cleaning services for calendar year 2019.
- The information disclosed below is solely for gross sales 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.
- Stanley Steemer has presented these figures on a nationwide basis and in geographic subsets. Stanley Steemer selected these geographic subsets based upon regional variations in weather, population density, and consumer consumption patterns.