Try cleaning

This month's Market Focus could include all of the jokey puns such as "Clean up with a cleaning franchise". Not that this magazine would ever advocate that, but when it comes to the cleaning market, this is a sector that really does get results, both in high customer rates and profits.

For most people, the daily nine-to-five grind doesn't exactly leave them feeling like having to do the chore of cleaning their home at the end of the day. There's also the cleaning of offices, businesses and institutions such as hospitals. Cleaning franchises can take on the job and deliver to the highest standard possible.

It is an expanding market and one of the most important franchising sectors. But putting an exact figure on how fast it is growing is more difficult to gauge. "Evaluating the industry in total is almost impossible, given the size of the black market and the dearth of published research on it," says Andrew Parsons, Molly Maid franchise development manager. "However, we estimate the domestic cleaning market to be worth £2.86 billion in the UK, with more than 2.45 million households being amenable to or employing some sort of help in the home."

This evidence is further qualified by Mark Richardson, Chem-Dry's marketing executive. "There are 25 million households in the UK, so demand for domestic cleaning services will always be high," he says.

The demand for domestic cleaning is due to a number of factors. The socio-economic factors that have led to a sustained growth in demand for domestic cleaning services over recent years include: increased level of incomes, particularly among dual-income households; a steady increase in the numbers of women employed outside the home; a shift in family priorities and a focus on leisure over domestic responsibilities; and a greater social acceptance of having help in the home.

The stricter legislations for cleanliness standards in healthcare have also proven to be a boon for franchises. "We have a product that will always be needed," says Ron Hutton, Chemex's sales director. "The potential for healthcare is massive, with viruses and bacteria like MRSA, C Difficile, E.coli and hundreds of other potentially fatal bacteria. Chemex has products that kill these and the spores, which are what do the damage. Hospitals etc are extremely interested in these products."

Commercial cleaning is growing too. Minster Cleaning Services founder Alan Haigh says that office cleaning is a 'must have' business service and is virtually unaffected by economic climate. "Research has shown that staff work harder as well as being healthier and more loyal when their surroundings are clean, comfortable and pleasant. Many companies looking to cut expenditure and deliver variability in costs during downturns prefer to outsource services such as office cleaning," he says.

Reading all these positive testaments, it's tempting to start up a cleaning business from scratch. However, the franchising route makes a lot more sense for various reasons. For one thing, there is the safety net of a tried and trusted and well-respected business name. Admittedly, there can never be a 100% guarantee of success with all franchisees, but as Mr Parsons points out: "You stand a far greater chance of building a successful business through the training and support provided by a franchisor and following a proven business format."

Chem-Dry's Mr Richardson expands on this by saying that while franchisees are working under the brand guidelines of an established company, there is still a high degree of autonomy involved. "You can manage your own business. In guaranteed parameters of a franchise, you have a fair amount of creativity. You have the opportunity to be proactive and think outside the box. You have a proven business solution." He adds that the vast network of franchisees involved in any franchise is there to provide help and support. "There is a greater success rate and less risk because you are part of a network. You can get onto the phone to other franchisees and ask for advice."

Minster's Mr Haigh adds: "As has been well reported, the failure rate for new businesses is around 70% to 80% in the first year and only about half of those who survive the first year will remain in business the next five years. With Minster, provided you follow the system, you will succeed and there is a wealth of support and advice available to help you every step of the way."

Franchising isn't necessarily a smooth ride. Because the cleaning sector is such a popular one, this means that the number of franchises in this area is high. With that in mind, the cleaning franchise sector is a deeply competitive one, and definitely not a vocation for the faint hearted. "Success and brand awareness have to be achieved with a much disciplined approach to marketing," says Molly Maid's Mr Parsons. "Success is not dependent on the pounds invested into advertising but focusing all resources behind getting and keeping customers."

Brand is another important element of maintaining the business. The customer must always be presented with a good first impression of its staff and its services. "The brand image is important," says Mr Richardson. "The image that you portray to customers and staff is part of the overall package. It is key to promote both the right image and first impression."

"Of course, it is imperative that standards of service are maintained at all times and this is where a well structured set up such as Minster can really pay dividends," adds Mr Haigh. "The highly trained and experienced operations team at each of our branches ensures that contracts are fully staffed, training is carried out effectively and standards are maintained through regular quality audits, service calls and inspections."

The opportunities in cleaning franchises are many, but as with any business venture, it all boils down to how much effort each individual is prepared to put into the enterprise. "Typically an established Molly Maid franchise in the UK operates six teams by the end of year two, but evidence shows that the more investment in marketing in the first six months, the more the substantial the rewards and quicker the rate of return on investment," explains Mr Parsons. "Obviously nothing is guaranteed. In the end it is down to the skills and capabilities of the applicant to make the most of the business opportunity."

Molly Maid

Nearly 30 years old, Molly Maid is one of the world's largest home cleaning services with franchises in Canada, the US, Japan, Portugal and the UK. In the UK, turnover is over £12 million: worldwide, it is over £100 million.

The company prides itself on making the business model as successful as possible. Pam Bader, the CEO of Molly Maid UK, says: "We encourage and reward our franchise owners to grow their business, something which should be the sole focus of every franchisor."

The package offers many plus points: franchisees can invest in an area that ranges from 12,000 to 24,000 potential customers, with an option to increase the marketing spend to fast track sales and a royalty rate that reduces on progressively higher sales. The company aims to provide franchisees with a model that will help them make the most of the business and achieve success.

As well as an exclusive area, the initial investment package includes comprehensive training; a start-up set comprising stationery, marketing materials, cleaning equipment and uniforms; as well as access to the Molly Maid intranet.

The business offers wide support. For example, when franchisees go live, on-site support is provided with recruiting staff and meeting potential customers. Meanwhile, the Molly Maid team provides help with delivery of cleaning equipment and supplies, fast tracking delivery of the first Molly Maid car, as well as despatch of uniforms, stationery, literature and publicity material.

The investment level starts at £16,975 plus VAT and builds to £22,975 plus VAT, depending on business objectives and the number of target customers in the area. In order to keep operating costs low, most franchisees start their business from home.

Although sales and management experience is advantageous, Molly Maid franchisees come from all walks of life. As long as candidates have common sense, the ability to get on well with people and a willingness to work hard, a future with Molly Maid should be assured.

Chem-dry

Chem-Dry has been in the UK since 1987, but in effect, the corporation itself has been going for over 30 years. There are two sides of the business - one is devoted to domestic and commercial carpet and upholstery cleaning, while the other side deals with disaster restoration, recovering the aftermaths of fires and flooding.

Mark Richardson, marketing executive, comments: "All our franchise licences are independently owned, and operated and this gives Chem-Dry a local accent. In terms of business, we have grown rapidly. We cover the UK and Northern Ireland and we have coverage in the Channel Islands, the Isle of Wight and the Isle of Man. Altogether, we have 200 franchisees and over 750 franchise licences."

There are two packages in Chem-Dry. The first includes a five-year franchise licence, Chem-Dry patented equipment, fire/flood restoration equipment, 13 days initial training, a quick step business development programme, stationery, patented cleaning solutions, an operations manual, marketing CDs and software. The second incorporates the Truckmound cleaning technology leasing costs.

New recruits will be part of a powerful network. "They will belong to a system that works," says Mr Richardson. "It is a proven business model. They will be working for a well-known company that consumers trust. We have tested research in proven products - there is also training, technical and marketing support. We also offer seminars and dedicated events to get the network together. They are informative and also demonstrate the sharing culture that we have in the Chem-Dry network."

Chem-Dry is looking for budding entrepreneurs to become franchisees. They must have drive and enthusiasm, as they will represent the Chem-Dry brand positively in local communities.

"We have a mix of franchisees," says Mr Richardson. "There are one-man band operators and also multi-unit franchisees. The multi-units can have from two licences through to 15-20. The sole traders can run their business from home or from a premises and the multi-unit licences cover a reasonably wide area."

Chemex International

Chemex International began life as a franchise in 1985 (then called Chemical Express), selling the company's own, specially manufactured cleaning and hygiene products.

In 2006, Chemex was sold to three franchising veterans who, almost immediately, redirected the franchisee recruitment philosophy to that of a business-building concept, seeking people whose aspirations included growing a 'proper' business, an asset that could be sold on with real value.

Chemex International says it only looks for the very best. Candidates should be enthusiastic and energetic team players. They should be prepared to start off small, but have large ambition for a business building opportunity.

The franchise licence fee costs £8,500, while the remainder of the package is £13,000 (recommended working capital is £10,000 minimum). This includes an exclusive large area; full induction and ongoing training; a comprehensive start-up pack; a computerised management and accounts system; an individual website; top quality products; a fully kitted out mobile showroom; plus top quality customers and repeat orders.

Chemex International supplies cleaning and hygiene products. Because of the strict hygiene regimes in the UK and Europe and the health and safety requirements in the core areas of catering, leisure and healthcare, there are many opportunities. This is an advantage, considering the current economic climate, as it is virtually recession-proof with a high concentration of repeat orders.

Minster Cleaning Services

Minster Cleaning Services was set up by Alan Haigh in 1982. He recognised that there was huge potential in the massive market for office cleaning, which was fragmented and comprised many small cleaning companies. He franchised the business in order to grow quickly and to bring in managers who were more committed than those that were employees.

Minster allocates large areas to franchisees. These allow for considerable profits for each franchisee if they corner just 3%-4% of the market in their territory. Indeed, the average annual turnover now stands at over £800,000 per franchisee.

The basic price for the Minster franchise (which includes the territory and all training costs) is £28,000. In addition, franchisees will need around £60,000 working capital. It's also worth noting that all Minster franchisees are office-based rather than home workers. This is because the size and the structure of the business is not suitable for a home-based operation.
 
Middle to upper-middle managers are ideal candidates for a Minster franchise. However, Minster franchisees come from all walks of life including accountancy, brewing, retail, television, transport and advertising - what they have in common is the number of attributes they share, including commitment, resilience and management ability. From the outset, franchisees will be employing staff which, within five years, could easily be as many as 200 people.