Stanley Steemer Franchise: Average Sales ($1.71M) vs. Cost ($139K-$410K)

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

Section I – Estimated initial investment (franchise costs) for a Stanley Steemer franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Stanley Steemer franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Stanley Steemer outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Stanley Steemer franchise opportunity

Section V – Presentation and analysis of Stanley Steemer’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 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 2022 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 franchisees nationwide

Section VI – Key ratios, comparables, computations, and analyses for the Stanley Steemer franchise opportunity (exclusive content for Platinum subscribers)

Section I – Stanley Steemer Franchise Costs

• Stanley Steemer franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $20,000 to $100,000
• Real Property:  amount not specified
• Stanley Steemer Cleaning Platform and Accessories:  $27,000 to $56,000
• Stanley Steemer Vehicle:  $41,000 to $60,000
• Total for Stanley Steemer Vehicle (as equipped):  $68,000 to $116,000
• Water Restoration Equipment:  $8,000 to $30,000
• Air Duct Cleaning Equipment:  $8,000 to $82,000
• Sufficient Supply of Cleaning Products Required to Commence Operation:  $5,000 to $8,000
• Telephone Deposit:  $0 to $250
• Comprehensive Liability Insurance (per year):  $7,500 to $15,000
• Computer Equipment:  $2,500 to $5,000
• Local Market Advertising Listings:  $600 to $7,000
• Internet Connection:  $40 to $200
• Data Hosting/Backup:  $75 to $250
• Advertising:  $8,500 to $14,000
• Travel, Room, and Board to Attend Training Program:  $500 to $2,000 per person
• PowerMagic and Nimbus Mobile Software Set Up/Conversion Fee:  $495 per person per day
• Additional Funds for 6 Months of Operation:  $10,000 to $30,000
• Total Estimated Stanley Steemer Franchise Costs:  $139,210 to $410,195
  

Section II – Stanley Steemer’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Stanley Steemer’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  varies. As a general rule, the initial franchise fee is approximately $20,000 for each 100,000 in population or fraction of 100,000 in population in your area. Typically, the range of initial franchise fees charged to franchisees is $20,000 to $100,000.
• Monthly Royalty:  monthly royalty payment equal to 7% of gross sales from Core Business and 3% of gross sales from Related Business
• Minimum Annual Royalty:  if the total of monthly royalty payments paid by you during a one-year period are not at least equal to the Minimum Annual Royalty amount negotiated by you and Stanley Steemer as set out in your Franchise Agreement, you must pay Stanley Steemer the difference
• Additional Royalty:  0 to 3% of total gross sales
• Advertising:  10% of total gross sales
• National Advertising Fee:  up to 4% of monthly gross sales from Core Business and Related Business

Section III – Number of Franchised and Company-Owned Stanley Steemer Outlets

Franchised

2020

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

2021

• Outlets at the Start of the Year:  214
• Outlets at the End of the Year:  217
• Net Change:  +3

2022

• Outlets at the Start of the Year:  217
• Outlets at the End of the Year:  215
• Net Change:  -2

Company-Owned

2020

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

2021

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  56
• Net Change:  +1

2022

• Outlets at the Start of the Year:  56
• Outlets at the End of the Year:  56
• Net Change:  0

Section IV – News Updates on the Stanley Steemer Franchise

• Make the Holidays Cleaner with Stanley Steemer

• Stanley Steemer Ranked No. 111 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Stanley Steemer Franchise (Item 19, 2023 FDD)

• Those Stanley Steemer franchisees that were in operation for all of 2022 had average annual gross sales for 2022 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 2022.

• 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

• 210 Stanley Steemer franchisees were in operation during all of 2022.

• During 2022, one franchise had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business in 2022.

• Nationwide, the average annual gross sales of franchisees who were in operation during all of 2022 was $1,715,720. Sixty-nine franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $18,374.

• The highest amount of gross sales achieved by a franchisee was $12,685,953.

• Nationwide, franchisees’ median annual gross sales were $1,174,996.

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

• 8 Stanley Steemer franchisees were in operation during all of 2022 in the New England States.

• During 2022, 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 $1,487,738. Two of the eight franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $300,313.

• The highest amount of gross sales achieved by a franchisee was $3,648,577.

• Their median annual gross sales were $1,181,103.

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

• 21 Stanley Steemer franchisees were in operation during all of 2022 in the Mid-Atlantic States.

• During 2022, 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 $2,551,188. Nine of the 21 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $398,025.

• The highest amount of gross sales achieved by a franchisee was $6,786,949.

• Their median annual gross sales were $2,457,083.

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

• 45 Stanley Steemer franchisees were in operation during all of 2022 in the Great Lake States.

• During 2022, 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 $1,247,252. Fifteen of the 45 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $25,400.

• The highest amount of gross sales achieved by a franchisee was $9,935,053.

• Their median annual gross sales were $633,305.

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

• 30 Stanley Steemer franchisees were in operation during all of 2022 in the Mid-South States.

• During 2022, 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 $1,534,313. Twelve of the 30 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $59,759.

• The highest amount of gross sales achieved by a franchisee was $4,738,517.

• Their median annual gross sales were $1,346,797.

Southeast States (Florida, South Carolina, Georgia)

• 27 Stanley Steemer franchisees were in operation during all of 2022 in the Southeast States.

• During 2022, 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 $3,202,575. Eight of the 27 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $120,953.

• The highest amount of gross sales achieved by a franchisee was $12,685,953.

• Their median annual gross sales were $1,926,701.

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

• 18 Stanley Steemer franchisees were in operation during all of 2022 in the Great Plains States.

• During 2022, 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 $936,589. Six of the 18 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $117,838.

• The highest amount of gross sales achieved by a franchisee was $5,438,659.

• Their median annual gross sales were $586,950.

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

• 18 Stanley Steemer franchisees were in operation during all of 2022 in the Southwest States.

• During 2022, 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 $1,123,909. Six of the 18 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $18,374.

• The highest amount of gross sales achieved by a franchisee was $5,194,468.

• Their median annual gross sales were $861,020.

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

• 29 Stanley Steemer franchisees were in operation during all of 2022 in the Pacific Coast States.

• During 2022, 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 $1,748,075. Eight of the 29 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $137,681.

• The highest amount of gross sales achieved by a franchisee was $12,683,187.

• Their median annual gross sales were $970,368.

Southern States (Alabama, Louisiana, Mississippi)

• 11 Stanley Steemer franchisees were in operation during all of 2022 in the Southern States.

• During 2022, 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 $1,438,859. Four of the 11 franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $64,074.

• The highest amount of gross sales achieved by a franchisee was $4,583,081.

• Their median annual gross sales were $1,255,478.

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

• 3 Stanley Steemer franchisees were in operation during all of 2022 in the Northwestern States.

• During 2022, one franchise in these states had an outlet terminated, canceled, not renewed, or who otherwise ceased to do business. The gross sales of this franchise were not included in the gross sales amounts in the sub-set of the Northwestern States’ franchisees because the franchise did not operate for all of 2022. This franchise was in operation for 12 months or longer.

• The average annual gross sales of these franchisees was $862,811. Two of the three franchisees achieved this sales volume or more.

• The lowest amount of gross sales achieved by a franchisee was $98,634.

• The highest amount of gross sales achieved by a franchisee was $1,515,782.

• Their median annual gross sales were $974,016.

Section VI – Stanley Steemer Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️