JAN-PRO Cleaning and Disinfecting In Central Indiana explains what a franchise is, how it works, and how you can own one.
Starting your own business can be scary as it comes with many challenges and risks. On the other hand, buying a franchise allows you to be your boss without starting from scratch or taking so many risks.
To help you make informed choices, JAN-PRO Cleaning and Disinfecting In Central Indiana shares everything you need to know about starting a cleaning franchise.
What Is a Franchise, and How Does It Work?
A franchise is a form of agreement that allows you (the franchisee) to sell a product or offer a service under a franchisor’s trademark, brand name, processes, and business knowledge.
Buying a franchise allows you to own a business without starting one from scratch. By paying an initial investment fee and subsequent renewal fees, you get access to an existing business’ trademark, supplies, and expert support.
How is Territory or Market Exclusivity Determined in Franchise?
Market exclusivity restricts your franchisor from placing another franchise in your area.
Having too many franchises under the same franchisor in the same area can lead to competition, which may not allow your business to grow as it should.
Territory or market exclusivity helps to reduce competition by limiting the number of franchisees a franchisor can have in one area.
Depending on the brand and market, a territory can be measured by population, demographics, marketing area, location, and online sales. Some brands also measure their territory by places such as malls and shopping centers.
What Are the Typical Terms of a Franchise Agreement
The Franchise Agreement is a legal document that states the rights and obligations of the franchisor and the franchisee. Some of the primary details of a franchise agreement include the following:
- Use of trademark and intellectual property
- Support and training
- Duration of the contract
- Territory
- Franchisor’s service requirements
- Site selection
- Fees and expenses
- Termination
- Duties upon termination
What is the Process of Renewing or Terminating a Franchise Agreement?
Franchise agreements usually last for as long as 10 to 20 years, and when they expire, the franchisee has the option to renew.
If you have dutifully fulfilled all your responsibilities to your franchisor, they should be willing to renew your contract. But if there has been any breach of some sort or if you fail to meet the renewal terms and requirements, the franchisor might refuse to renew, and the agreement will expire at the end of the period.
However, in some cases, one of the parties might wish to terminate the franchise agreement before it expires. Typically, a franchise agreement only allows the parties involved to terminate if there has been a material breach of contract.
Meaning that a franchisee cannot terminate a franchise agreement unless the franchisor fails to fulfill some of its responsibilities and does not take corrective measures even after they have been notified of the breach, and vice versa.
What Are the Benefits of Owning a Franchise Compared to Starting a Business from Scratch?
1. Little to No Industry Knowledge Required
Unlike starting a business, you do not need to have a deep knowledge of the industry before buying a franchise.
2. Access to Existing Customer Base and Brand Awareness
Buying a franchise gives you access to automatic brand recognition and customer base since the business is already well-known and accepted.
3. Support and Assistance
When you own a franchise, your franchisor will support you and help you understand the business. They will provide guidance, show you how the business works, and give you all the information you need to be successful.
How Much Does it Cost to Buy a Franchise?
Like every form of business, owning a franchise comes with a cost. There are different fees that make up the total franchise cost, and the total amount you’ll spend to launch your franchise depends on the brand and your location.
The total amount you’ll pay to buy a franchise consists of many different fees, including franchise fees, startup costs, and royalty fees. Depending on the size of your business, these costs can turn into thousands of dollars.
What Are the Ongoing Fees Associated With Owning a Franchise?
Aside from the initial payments you will make when buying your franchise, there are recurring or ongoing fees that you must pay to your franchisor to continue using their intellectual property. Some of the recurring costs in the franchise business include the following:
- Royalty fee
- Advertisement fee
- Technology fees
- Ongoing training fee
- Insurance premium
How Long Does it Take to Open a Franchise Location?
After signing the franchise agreement, the next task is setting up and launching the location. Opening a franchise location can take a few weeks up to 12 months or more, depending on the brand or business type.
Some of the activities that can determine how long it’ll take to open your franchise include:
- Developing your business plan
- Selecting a location
- Paying the lease and signing the necessary documents
- Setting up the office or store and getting furniture and fixtures
- Attending training
- Training your employees
What Are the Requirements for Owning a Franchise?
1. Credit Score
Although different franchise owners set different credit score standards, you should have an average credit score of 680 or higher if you wish to own a franchise.
2. Networth
Running a franchise requires money. Even if you want to get a loan from the bank to run your business, you still need a high overall net worth to qualify to own a franchise.
3. Management Skills
Like every business, you need good management skills to successfully manage your cleaning franchise and ensure that it doesn’t fail. Having management skills allows you to manage your staff, multi-task, and finish the job on time.
How Much Control Do Franchise Owners Have Over Their Business Operations?
As a new franchisee, you should know that the franchisor has more control over major parts of the business. However, this doesn’t mean you have no control over your business operations.
You have control over your staff management, customer service, and daily operations. But, for uniformity purposes, your franchisor has control over the major aspects of your business, such as the type of product, the kind of employee you hire, employee training, and advertising.
What Type of Support Will You Receive From the Franchisor?
When you buy a franchise, the franchise owner will support and guide you as you manage your business. The types of support you can expect from your franchisor include:
- Financial support
- Initial training and operation manual
- Advertising and marketing
- Location selection
- Continuing support
However, you must know that these supports can vary from one franchisor to another. This is why you must carefully go through your franchisor agreement to understand what to expect.
How are Marketing and Advertising Handled for Franchise Locations?
Another benefit of franchising is that you don’t have to handle your marketing and advertising alone. The franchisor and the franchisee usually work together to design a marketing strategy that works for their businesses.
There are two types of franchise marketing, and they are:
- Operational Franchise Marketing
This strategy involves the franchisor and the franchisees working together to promote the brand’s awareness in their locality and get new customers for the franchise. Operational marketing focuses on implementing promotional means to acquire and retain new customers for the franchise.
- Developmental Franchise Marketing
Here, the franchisor implements marketing strategies to attract investors and acquire new franchises in new locations. This marketing strategy targets those looking to invest in a business or buy a franchise.
What Training is Provided for Franchise Owners?
Franchisors hold timely training for franchise owners to ensure that they represent the brand properly and successfully run their franchise. Some of the training you can enjoy from your franchisor include the following:
- Head Office Training
After signing the franchise agreement, all new franchisees are taken to the franchise headquarters for their first hands-on training. The new franchise owners will be introduced to key team members and learn how the business model works.
- Onsite Training
This training takes place at the new franchise location, and it aims to introduce the franchisee to the machinery and operations of the business. This training is just like head office training, only that the goal here is to help the franchisee set up and start running the franchise.
- Continuous Training
Franchisors also provide continuous training for franchise owners through conferences and field training programs. This ongoing training ensures that franchisees are equipped with the latest industry knowledge and best practices to keep their business competitive and successful.
What is the franchisor's track record of success?
Before investing your time and money into buying and setting up a franchise, you want to be sure that the franchisor is successful and that the franchise is profitable. Some of the track records to measure to consider when evaluating a franchisor's success are:
- Brand awareness of the business
- Unit growth of the franchises
- Revenue of the business
- Low employee turnover
- Strong support for franchises
- A number of successful franchises are in the system.
Conclusion
Although many people want to own a business, not many people have the gift and skill to start one successfully. By leveraging on an existing business plan and strategy and enjoying the unlimited support that franchising allows, you can own a business and be your own boss without starting from scratch or making avoidable mistakes.
If you wish to own a cleaning franchise or learn more about franchising, JAN-PRO Cleaning and Disinfecting In Central Indiana has all the information and support you need.
Own Your Own Cleaning Franchise in Indianapolis, IN
JAN-PRO Cleaning and Disinfecting In Central Indiana is a local commercial cleaning franchise committed to serving the Indianapolis Community through reliable and efficient cleaning services.
With many years in the business, they have maintained a reputation as one of the best commercial cleaners in the area. They offer the support you can always count on and brand awareness that can help you attract customers easily.
Contact JAN-PRO Cleaning and Disinfecting In Central Indiana at (317) 472-1472 or visit their website for more information.
