What is the Truth About
Buying a Carpet Cleaning Franchise?
There is no doubt that number of carpet cleaning franchise
businesses grows each year. It seems no matter where you
live in the country, you'll find the same well-known
carpet cleaning business names in the local yellow pages
and newspaper ads. Why are they so popular?
First, we should explain that a franchise operation is very
beneficial to the riginating company. It is a simple method
with which one company distributes its products and services
through third party operators. The local operator must
perform services using the marketing methods, trademarks
provided by the company. In return for using the business name,
the operator of the franchise must pay an initial fee and
royalties to the owner of the franchise business.
The original company that provides the independent
operator the right to distribute its trademarks, products,
or cleaning techniques is known as the franchiser.
The third party business person distributing the
franchiser's products or services through retail or service
outlets is called the franchisee.
The franchisee benefits in many ways by purchasing a carpet
cleaning franchise. The immediate benefit is the new
business operator instantly gains name recognition in his area
of operation. In many cases, the franchisee will have the
benefit of national advertising, a complete business plan,
access to company tools, training and supplies as well as
proprietary products for resale. In most cases, except in
the case of the business plan, most of these items come at a
cost above the initial cost of the franchise and royalty
plan.
Most carpet cleaning franchise operations also require the
franchisee to promote its specific type of cleaning and
cleaning products. Most franchisers generally supply
specific equipment which is key to their specific cleaning
process. In this writer's opinion, this leads us into the
negative area of purchasing a carpet cleaning franchise.
From personal experience, I can say that there have been
tremendous improvements in carpet cleaning techniques,
equipment and chemicals in the past few years. Those of
us in the business realize that no "one" cleaning technique or
product works in 100% of cleaning situations. I've known
several so-called independent operators of various
franchise businesses that felt trapped into certain
cleaning plans that were no longer the most effective in the
market place. For example, what good is advertising a
specific cleaning method that employs outdated equipment when
you know very well that you have to use a different product or
machine than the company endorses to complete the job?
Of course no franchiser reaches into the home owner's living
room to see what exactly the cleaner is doing, but the result
is that the franchisee finds himself with a room full of
products and equipment he no longer needs or wants. It is
interesting that all franchise businesses will refer to the
franchisee as an independent operator. After
knowing many who have initially gone into business using a
carpet cleaning franchise, that is a questionable term to
use.
Most carpet cleaning business owners started their own
operations because they wanted to be independent, make their
own business decisions, set their own service standards and
wanted to earn what they felt their efforts were worth in the
market place. After they purchase a carpet cleaning
franchise, they find they traded their former employer for the
franchiser. They know they have to generate a certain
level of monthly business just to afford the royalty
requirement. The pressure increases with certain
operations which require monthly costs connected with national
advertising budgets and high costs of proprietary cleaning
products.
I always suggest following a carpet cleaning
business plan and become a truly independent small business
owner. With a proper business plan, the new business
operator can save thousands of dollars in startup costs and be
free of any future royalty fees.
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