Commercial Cleaning Franchise Initial Investment & Startup Costs
Starting any business requires sacrifice and careful financial planning. It’s no different with Office Pride. The difference is that we simplify the process by making it more affordable and providing helpful resources. Our goal is to make franchise ownership attainable for the average entrepreneur.
What It Takes to Start a Franchise
Initial Franchise Fee:
$45,000
Startup Cost Range:
$80,400-$126,600
We recommend that franchisees set aside six to nine months’ worth of personal living expenses. The exact amount will depend on your monthly expenses and the growth rate of your business.
**As a five-star VetFran franchisor, we offer a 25% discount on the franchise fee to honorably discharged U.S. military veterans. Additionally, spouses of first responders (including Law Enforcement, Paramedics, Firefighters, and Emergency Medical Technicians) with at least two years of continuous service who become franchisees will also receive a 25% reduction in the Initial Franchise Fee.
A Breakdown of Anticipated Expenses
Starting a commercial cleaning franchise involves various expenses.
| Expenditure Type | Expenditure Amount | Payment Recipient |
|---|---|---|
| Initial Franchise Fee | $45,000 | Office Pride |
| Lead Generation | $2,500-$5,000 | At Franchisee Discretion |
| Cleaning Supplies, Materials, & Ancillary Goods | $3,000-$7,000 | Approved Suppliers |
| Office Equipment & Supplies | $500-$3,500 | Approved Suppliers |
| Computer System | $0-$2,000 | Third Parties |
| Insurance | $4,000-$7,000 | Insurance down payment to the insurance company |
| Other Deposits | $100-$2,700 | Estimated for leased equipment, telephone, utilities, vehicle, etc. |
| Professional Fees | $200-$2,000 | For accountants and attorneys |
| Training Expenses | $0-$2,100 | Estimated expenses for attending the initial training |
| Licenses and/or Bonds | $100-$300 | Fees paid to government agencies and/or insurance or bonding companies |
| Additional Funds | $25,000-$50,000 | Needed for various operating expenses like payroll, supplies, cleaning equipment, marketing, bank fees, etc. and is dependent on how fast you grow |
| Total Expenditures | $80,400-$126,600 |
For complete information, see our Franchise Disclosure Document (FDD)
One of the biggest benefits of joining a cleaning franchise like Office Pride is the support you receive. From initial training to ongoing marketing and operational assistance, franchisees are set up for success. This support system is especially valuable for those new to commercial cleaning services. It helps franchise owners handle the challenges of running their own business while maintaining high service standards.
Funding Your Future
Deciding how to finance your start-up is a crucial early step for every entrepreneur. While some have enough personal funds to start a franchise, many need external financing.
Office Pride works with a group of preferred partners who can offer financial assistance, such as loans, to new franchise owners. Here’s an overview of the most common funding options.
Liquid Assets
Many franchise owners finance their start-ups using cash and savings. These can be personal stocks, liquidated assets, or money from family members.
Using these resources avoids debt and interest expenses and gets you started with a debt-free business. Liquid assets may accelerate the start-up time, so you can get your cleaning franchise up and running much quicker.
401k Business Financing
Entrepreneurs can use their 401k and IRA funds to buy a franchise without taking a taxable distribution or getting a loan. This technique, called Rollover for Business Start-ups (ROBS), enables retirement money to rollover without penalties. ROBS is attractive because you can put the cash that normally would be locked away until retirement into your own personal business. This strategy also avoids interest and debt and is thus a sound financial investment for many new franchise cleaning business owners.
SBA Loans
SBA business loans offer up to $5 million with low interest rates, flexible payment terms, and no ballooning costs. These are government-backed loans for new business owners. SBA loans are designed for small businesses and offer terms that make financing even more available. The application process for an SBA loan is often challenging, though the benefits of reduced interest rates and longer repayment terms frequently outweigh the original attempt. SBA loans may be utilized for the initial franchise fee, equipment, or working capital.
FAQs on Commercial Cleaning Franchise Cost
How much is typically required to start a cleaning franchise?
Starting a commercial cleaning company generally requires an investment ranging from $80,400 to $126,600, which includes the original franchise fee, insurance, office equipment, cleaning supplies, and other startup costs.
What are the ongoing expenses of owning a cleaning franchise?
Recurring expenses include marketing, equipment maintenance, supplies, payroll, and other operational costs. Maintaining a budget is crucial to ensuring the sustainability of your business.
Are there financing options available for starting a cleaning franchise?
Yes, you can find many financing options, including SBA loans, 401k business financing, and the help of preferred monetary partners. These options can help ease the original financial burden and support your business’s growth.
How long does it usually take to break even and become profitable with a cleaning franchise?
The moment when a franchise breaks even and becomes profitable varies based on location, market demand, and management effectiveness.
What factors should I consider before investing in a cleaning franchise?
Before committing, look at elements such as the franchise’s track record, ongoing and initial costs, assistance offered by the franchisor, market demand, and your financial and personal readiness to get into and control a cleaning company.
Contact Us
Need more information or want to speak with a representative? Give us a shout. We’d be happy to speak with you.
