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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Stanley Steemer’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross sales (and number of franchisees that achieved the average sales volume or more) for Stanley Steemer franchisees that were in operation for all of 2020 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

21 Things You Need to Know About the Stanley Steemer Franchise

Local Franchisee Donates Disinfection Treatment to Literacy Coalition

1.  In late January 2021, Stanley Steemer of South Florida donated its services to the Literacy Coalition of Palm Beach County by providing its Boynton Beach headquarters with a new disinfection treatment. Enabling the Literacy Coalition to resume its day-to-day operations, the new disinfectant is a water-based antimicrobial that protects for 90 days and prevents deterioration of substances caused by mold and mildew.

2.  With the donated service, the Literacy Coalition’s Americorp members were able to return to complete their training as well as staffers to prepare its volunteer tutors. The Literacy Coalition is a nonprofit organization committed to ensuring every resident in Palm Beach has the ability to read by promoting and achieving literacy.

3.  Kristin Calder, CEO of Literacy Coalition of Palm Beach County, highlighted the importance of the donation, citing that without it the headquarters might still be closed. Calder said, “We have used Stanley Steemer services in the past for other services like carpet cleaning. So, we’ve been hearing more about this [disinfectant] and obviously looking for ways that could help our literacy center get back and up and running. We have a 12,000-square-foot building. It’s used for education, training and outreach. So, it’s not just where we have our office space but it’s also where our Americorp members come in and do training.”

4.  Knowing that Stanley Steemer was offering the new treatment, Calder reached out to the cleaning service, hoping to learn if the product could help reopen the Boynton Beach headquarters. After getting in contact, Stanley Steemer made the decision to support the coalition’s cause and help the center reopen.

5.  Calder added, “I think the whole thing took less than an hour. The guy comes in and he looks like he’s wearing a jetpack or something on his back and sprays everything. You can actually see it and, obviously, it disappears. I think the best part is they’re spraying in all the areas that they think are high-touch points and that the fact that this is basically a surface cleaning. So, it’s on everything – our desks, door handles and any common spaces in our office.”

Setting Itself Apart from Other Carpet Cleaners

6.  The Stanley Steemer blog highlighted a few reasons why the brand stands out from other carpet cleaner services. One of the biggest draws of Stanley Steemer is that it is still owned and operated by the Bates family. Additionally, the Bates family has also been able to kept all manufacturing and engineering in Ohio.

7.  A large part of what sets Stanley Steemer apart from other carpet cleaners is its ability to make everything on its own, without distributors, just as founder Jack Bates envisioned it. Stanley Steemer is proud to be made in the USA.

8.  Most carpet cleaning companies buy their parts from distributors. When companies buy from distributors, it makes it hard to control quality, price, and innovation. Stanley Steemer, however, can regulate all of these factors. Stanley Steemer’s manufacturing plant, located in Columbus, Ohio, makes all of the brand’s equipment with very strict quality measures.

9.  It’s important that customers know Stanley Steemer has high-quality standards because it guarantees customers’ homes are cleaned with the safest, most efficient, carpet cleaning machines. Because Stanley Steemer isn’t dependent upon distributors, it has the most innovative cleaning technology.

10.  Stanley Steemer’s process is different from other carpet cleaners because its cleaning wands use six spray tips for thorough cleaning. This original design makes carpet cleaning, hardwood cleaning, tile and grout cleaning, and upholstery cleaning more efficient. Other professional cleaning companies use three or four spray tips making the cleaning process less effective and more time consuming due to streaking and covering less cleaning surface.

11.  The brand’s innovative and efficient technology is amplified by its state-of-the-art cleaning products which are proven to remove allergens from your home. Stanley Steemer removes an average of 94% of common household allergens from carpet, 96.5% of allergens from tile and grout, and 96% from hardwood.

12.  Not only is Stanley Steemer’s carpet, tile and grout, hardwood, water remediation, and air duct cleaning safe, but so is its cleaning chemicals. The brand’s pre-spray carpet cleaning solution and professional spot remover are verified by the EPA as Safer Choice. This mark enables consumers to quickly identify and choose products that can help protect the environment and are safer for families.

13.  When it comes to the application of Stanley Steemer’s cleaning chemicals and cleaning equipment, the brand prioritizes technician training and education to ensure that everything is used in a safe and efficient way; moreover, the brand’s training establishes that when Stanley Steemer arrives at a customer’s home, they are greeted with a smile and left with satisfaction. Stanley Steemer sends its own employees and never sub-contracts. Training is done in-house to guarantee proper professional cleaning techniques.

14.  When deciding to schedule with Stanley Steemer, customers can choose from two different 24/7 quoting and scheduling methods. Call anytime at 1-800-STEEMER or visit the brand’s website and get a free, instant quote or appointment. Stanley Steemer even has same-day service available.

15.  Stanley Steemer can clean carpet, hardwood, tile and grout, natural stone, air ducts, upholstery, area rugs, oriental rugs, cars, boats, RVs, and even water emergencies. The brand also specializes in commercial services. Stanley Steemer can clean any kind of small or large commercial carpet, tile and grout, hardwood, natural stone, upholstery, and air duct system with its made in the USA, efficient, innovative equipment.

Company History

16.  Stanley Steemer was founded in 1947 by Jack A. Bates in Columbus, Ohio. It began as a one-man carpet cleaning business called The Jack Bates Carpet Cleaning Company. Over the next few years, demand for Bates’ services grew and he expanded the business.

17.  The company took off over the next few decades and by the 1970s, Bates developed the first prototype steam cleaning machine, the Stanley I. Also around that time, Bates’ son, Wesley Bates, graduated from college and joined the company. The new steam cleaning machines reminded Jack Bates of the Stanley Motor Carriage Company’s steam-powered automobiles – colloquially called Stanley Steamers.

18.  In 1972, Bates was ready to start franchising his carpet cleaning business and settled on the name Stanley Steemer. Around that same time, Bates started using what is now the brand’s iconic yellow-orange color scheme. The first franchise opened in Lima, Ohio. In 1976, the Stanley Steemer research and development team launched the brand’s famous truck-mounted dual-wand cleaning machine.

19.  Over the next few decades, Stanley Steemer continued to grow around the United States. Jack Bates stepped down in 1985 and his son, Wesley Bates, took over as president and CEO. To keep the business going, Stanley Steemer added additional services, including air duct cleaning, tile and grout cleaning services, and off-site oriental and fine area rug cleaning.

20.  Today, the Bates family continues to own and operate Stanley Steemer and there are locations across 49 states.

Entrepreneur’s Franchise 500

21.  Stanley Steemer ranked No. 158 on Entrepreneur’s 2021 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 2021 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  205
• Outlets at the End of the Year:  215
• Net Change:  +10

2019

• Outlets at the Start of the Year:  215
• Outlets at the End of the Year:  214
• Net Change:  -1

2020

• Outlets at the Start of the Year:  214
• Outlets at the End of the Year:  214
• Net Change:  0

Company-Owned

2018

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  54
• Net Change:  -7

2019

• Outlets at the Start of the Year:  54
• Outlets at the End of the Year:  55
• Net Change:  +1

2020

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  55
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• Those Stanley Steemer franchisees that were in operation for all of 2020 had average annual gross sales for 2020 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 for calendar year 2020.

• 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.

Nationwide

• 214 Stanley Steemer franchisees were in operation during all of 2020.

• During 2020, 2 franchisees had an outlet terminated, canceled, not renewed, or otherwise ceased to do business in 2020. The gross sales of these 2 franchisees were not included in the gross sales amount in this Item 19 because they did not operate for all of 2020. These 2 franchisees were both in operation for 12 months or longer.

• Nationwide, the average annual gross sales of franchisees who were in operation during all of 2020 was $1,383,351.50. Sixty-five franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $13,336.

• The highest amount of gross sales achieved by a franchisee was $11,172,975.

• Nationwide, franchisees’ median annual gross sales were $853,095.

New England States (Connecticut, Maine, Massachusetts, Rhode Island, New Hampshire, Vermont)

• 7 Stanley Steemer franchisees were in operation during all of 2020 in the New England States.

• During 2020, there was 1 franchisee in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $983,322. Two of the 7 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $149,730.

• The highest amount of gross sales achieved by a franchisee was $2,626,190.

• Their median annual gross sales were $676,468.

Mid-Atlantic States (New York, Pennsylvania, Maryland, Delaware, New Jersey)

• 25 Stanley Steemer franchisees were in operation during all of 2020 in the Mid-Atlantic States.

• During 2020, there were no franchisees in these states had an outlet terminated, canceled, not renewed, or otherwise ceased to do business.

• The average annual gross sales of these franchisees was $1,921,895. Nine of the 25 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $198,591.

• The highest amount of gross sales achieved by a franchisee was $5,895,359.

• Their median annual gross sales were $1,619,708.

Great Lake States (Ohio, Illinois, Indiana, Wisconsin, Michigan)

• 46 Stanley Steemer franchisees were in operation during all of 2020 in the Great Lake States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $1,007,405. Thirteen of the 46 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $114,594.

• The highest amount of gross sales achieved by a franchisee was $9,081,129.

• Their median annual gross sales were $477,356.

Mid-South States (Virgnia, North Carolina, Tennessee, West Virgina, Kentucky)

• 28 Stanley Steemer franchisees were in operation during all of 2020 in the Mid-South States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $1,361,446. Eleven of the 28 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $62,417.

• The highest amount of gross sales achieved by a franchisee was $4,143,214.

• Their median annual gross sales were $1,026,206.

Southeast States (Florida, South Carolina, Georgia)

• 29 Stanley Steemer franchisees were in operation during all of 2020 in the Southeast States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $2,362,756. Eight of the 29 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $39,155.

• The highest amount of gross sales achieved by a franchisee was $11,172,975.

• Their median annual gross sales were $862,590.

Great Plains States (Arkansas, Kansas, Iowa, Missouri, Minnesota, Nebraska, Oklahoma)

• 18 Stanley Steemer franchisees were in operation during all of 2020 in the Great Plains States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $799,200.07. Six of the 18 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $55,174.

• The highest amount of gross sales achieved by a franchisee was $5,094,007.

• Their median annual gross sales were $570,037.

Southwest States (Arizona, New Mexico, Colorado, Utah, Texas, Nevada)

• 18 Stanley Steemer franchisees were in operation during all of 2020 in the Southwest States.

• During 2020, there was 1 franchisee in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $887,173. Six of the 18 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $39,154.56.

• The highest amount of gross sales achieved by a franchisee was $4,430,914.

• Their median annual gross sales were $586,962.

Pacific Coast States (Alaska, California, Hawaii, Oregon, Washington)

• 29 Stanley Steemer franchisees were in operation during all of 2020 in the Pacific Coast States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or otherwise ceased to do business.

• The average annual gross sales of these franchisees was $1,458,097. Seven of the 29 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $146,015.

• The highest amount of gross sales achieved by a franchisee was $9,827,170.

• Their median annual gross sales were $695,670.

Southern States (Alabama, Louisiana, Mississippi)

• 10 Stanley Steemer franchisees were in operation during all of 2020 in the Southern States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $1,227,566. Three of the 10 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $386,403.

• The highest amount of gross sales achieved by a franchisee was $3,851,887.

• Their median annual gross sales were $1,120,016.

Northwestern States (Idaho, Montana, North Dakota, South Dakota, Wyoming)

• 4 Stanley Steemer franchisees were in operation during all of 2020 in the Northwestern States.

• During 2020, there were no franchisees in these states that had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business.

• The average annual gross sales of these franchisees was $550,748. Two of the 4 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $85,553.

• The highest amount of gross sales achieved by a franchisee was $1,099,079.

• Their median annual gross sales were $509,180.

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