In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for The Cleaning Authority franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for The Cleaning Authority franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on The Cleaning Authority franchise opportunity
Section V – Presentation and analysis of The Cleaning Authority’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 total actual gross revenue; average gross revenue; total number of customers; average price per clean; total number of cleans performed; average cost of goods sold; average weekly customer loss; total estimate leads and total appointment leads, and conversion percentages; total sales; and estimated total number of employees for the period December 31, 2021 through December 31, 2022, the franchisor’s 2022 fiscal year, for the top third, middle third, and bottom third of the 199 Enterprise Market Franchised Businesses that were operating for the entire 2022 fiscal year
Section VI – Key ratios, comparables, computations, and analyses for The Cleaning Authority franchise opportunity (exclusive content for Platinum subscribers)
Section I – The Cleaning Authority Franchise Costs
- The Cleaning Authority franchise costs (for an enterprise market), based on Item 7 of the company’s 2023 FDD:
- Territory Fee: $22,500 to $45,000
- Franchise Fee: $20,000
- Computer, Including Training Software Access Fee: $1,750 to $2,750
- Washer, Dryer, and Furniture: $1,500 to $3,000
- Cleaning Equipment and Supplies: $2,500
- Travel and Living Expenses While Training: $2,500 to $3,500
- Insurance and Insurance Deposits: $5,000 to $7,000
- Opening Inventory: $2,000 to $2,500
- Office Rent and Security Deposit: $6,000 to $12,000
- Local Marketing Fee Deposit – 50% of First 13 Weeks: $6,563 to $13,127
- Local Marketing Fees – Remaining 50% of First 13 Weeks: $6,563 to $13,127
- Vehicle Lease or Purchase: $0 to $2,000
- Full-Time Manager: $0 to $14,250
- Additional Funds (3 months): $27,000 to $34,000
- Total Estimated The Cleaning Authority Franchise Costs: $103,875 to $175,250
Section II – The Cleaning Authority’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- The Cleaning Authority’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Franchise Fee: $20,000 for an Enterprise Market and $15,000 for a Hometown Market
- Royalty Fee: for Enterprise Markets, 6% of first $600,000 Gross Revenue during the calendar year; 5% of Gross Revenue from $600,000.01 to $1,300,000; 4% of Gross Revenue above $1,300,000.01. For Hometown Markets, 6% of first $300,000 Gross Revenue during the calendar year; 5% of Gross Revenue from $300,000.01 to $550,000; and 4% of Gross Revenue above $550,000.01. The rate reverts to 6% at the start of the next calendar year.
- Brand Fund Contribution: for both Enterprise Markets and Hometown Markets, 1% of Gross Revenue or $200 per week, whichever is less
- Local Marketing Fee: currently $0.374 multiplied by a percentage of the Designated Households (“DHH”) in your Territory (9% to 13% depending on your number of customers, with lower thresholds for Hometown Markets)
Section III – Number of Franchised and Company-Owned The Cleaning Authority Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 208
- Net Change: -10
2021
- Outlets at the Start of the Year: 208
- Outlets at the End of the Year: 209
- Net Change: +1
2022
- Outlets at the Start of the Year: 209
- Outlets at the End of the Year: 216
- Net Change: +7
Company-Owned
2020
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2021
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section IV – News Updates on The Cleaning Authority Franchise
- Life at The Cleaning Authority: Activating Franchise Owners for Employee Advocacy Recruiting Efforts
Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Cleaning Authority Franchise (Item 19, 2023 FDD)
Part 1 – Franchised Businesses Operating From December 31, 2021 to December 31, 2022
- As of the end of fiscal year 2022, there were 216 Franchised Businesses operating. Part 1 provides information for the 199 Enterprise Market Franchised Businesses (the “Reporting Businesses”) that were operating for the entire 2022 fiscal year.
- The Cleaning Authority excluded 7 Hometown Market Franchised Businesses, 10 Franchised Businesses that opened during the fiscal year, and 3 Franchised Businesses that closed during the fiscal year.
- Part 1 presents information based upon the top, middle, and lower performing Reporting Businesses. The top, middle, and lower performing Reporting Businesses were determined by comparing the actual Gross Revenue achieved by each Reporting Business during 2022.
Top Third Reporting Businesses by Gross Revenue
- Total Number of Reporting Businesses: 67
- Total Actual Gross Revenue: $153,036,644
- Average Gross Revenue: $2,284,129
- Number Above Average: 26
- Percentage Above Average: 39%
- Median Gross Revenue: $2,112,777
- Highest Gross Revenue: $4,408,109
- Lowest Gross Revenue: $1,545,540
- Total Customers: 48,959
- Average Price Per Clean: $153.03
- Total Number of Cleans: 1,000,063
- Average Cost of Goods Sold (“COGS”): 63%
- Average Weekly Customer Loss: 0.95%
- Total Estimate Leads: 101,059
- Total Appointment Leads: 32,074
- Percentage of Leads Resulting in Appointments: 32%
- Total Sales: 25,667
- Estimated Total Number of Employees: 3,037
Middle Third Reporting Businesses by Gross Revenue
- Total Number of Reporting Businesses: 66
- Total Actual Gross Revenue: $78,938,272
- Average Gross Revenue: $1,196,034
- Number Above Average: 33
- Percentage Above Average: 50%
- Median Gross Revenue: $1,194,805
- Highest Gross Revenue: $1,543,799
- Lowest Gross Revenue: $924,274
- Total Customers: 26,203
- Average Price Per Clean: $148.56
- Total Number of Cleans: 531,356
- Average Cost of Goods Sold (“COGS”): 63%
- Average Weekly Customer Loss: 1.12%
- Total Estimate Leads: 72,588
- Total Appointment Leads: 22,832
- Percentage of Leads Resulting in Appointments: 31%
- Total Sales: 17,084
- Estimated Total Number of Employees: 1,738
Bottom Third Reporting Businesses by Gross Revenue
- Total Number of Reporting Businesses: 66
- Total Actual Gross Revenue: $42,900,758
- Average Gross Revenue: $650,011
- Number Above Average: 41
- Percentage Above Average: 62%
- Median Gross Revenue: $693,279
- Highest Gross Revenue: $923,145
- Lowest Gross Revenue: $137,711
- Total Customers: 14,543
- Average Price Per Clean: $148.99
- Total Number of Cleans: 287,943
- Average Cost of Goods Sold (“COGS”): 65%
- Average Weekly Customer Loss: 1.39%
- Total Estimate Leads: 48,437
- Total Appointment Leads: 17,230
- Percentage of Leads Resulting in Appointments: 36%
- Total Sales: 12,400
- Estimated Total Number of Employees: 1,052
- COGS generally includes expenses for direct labor (but not management salaries or owner draws because these amounts are part of overhead expenses), payroll taxes, workers’ compensation and general liability insurance, cleaning supplies, mileage, and royalties payable to the franchisor from the Reporting Businesses.
- COGS does not include overhead expenses such as advertising and Local Marketing requirements, rent expense (approximately $1,200 to $2,000 per month), telephone expenses including mobile phone and internet (approximately $250 to $350 per month), manager salaries or owner draws, employee advertising (approximately $300 to $500 per month), and the like.
- In addition to the costs disclosed in this Chart, you will incur a weekly Local Marketing Spend.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – The Cleaning Authority Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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