Planning for Franchise Costs
Starting your own business is a big decision, and it’s important to be confident that you’re spending your money wisely and making the right choices for your financial goals. Wondering what makes a good franchise investment? Simply put, a good investment is one that is profitable – and ServiceMaster Clean fits the bill. Read on to learn more about the franchise costs you can expect.
Startup Costs and Fees
First, some important numbers. We require potential franchise owners to have $50,000 minimum liquid capital and $100,000 minimum net worth. Your initial franchise fee is $32,500, and you’ll pay that in a lump sum when you sign your franchise agreement. We offer a 20% discount on the franchise fee for military veterans, as well as a 10% discount for women and minorities. The approximate initial franchise investment ranges from $86,320 on the low end to $121,935 on the high end. This will vary depending on which format you choose for your business. You can expect that to include materials, equipment, certifications, and other expenses related to opening a business.
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The Investment
| Type of Expenditure | Amount of Expenditure | Method of Payment | When Due | Who You Pay | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise Fee | $32,000 | $32,000 | Lump Sum | Upon Signing Franchise Agreement | Us |
| Equipment | $10,000 | $20,000 | As incurred | Before Opening | Vendors |
| Vehicles | $3,975 | $5,500 | As incurred | Before Opening | Vendors |
| Travel and Other Expenses at Initial Training | $1,200 | $3,000 | As incurred | Before Opening | Vendors |
| Insurance | $3,750 | $6,500 | As arranged | Before Opening | Insurance provider(s) |
| Local Advertising | $500 | $1,500 | As arranged | As incurred | Vendors |
| Online Marketing Fund Deposit | $4,750 | $4,750 | Lump Sum | Upon signing Franchise Agreement | Us |
| Miscellaneous Opening and Real Estate Expenses | $1,000 | $4,200 | As incurred | As incurred | Vendors |
| Professional Fees | $5,000 | $15,000 | As incurred | As incurred | Lawyers and CPA |
| Additional Funds - first 3 months | $25,000 | $32,250 | As incurred | As incurred | Employees, Us, Suppliers, Utilities and Government Agencies |
TOTAL |
$87,675 |
$125,200 |
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Your Return on Investment
During the franchise process, you’ll have the opportunity to review our Franchise Disclosure Document, or FDD. The FDD includes all the financial information you need to determine whether franchising with ServiceMaster Clean is the right choice for you, including our business model, our place in the market, and your opportunity to succeed. Please feel free to ask us any questions you might have about the FDD or your franchise investment. It’s important to us that you’re well-informed!
To learn more about your financial opportunities as a ServiceMaster Clean franchise owner, fill out our online form. Our franchising team will be in touch shortly with all the information you need to make a smart franchise investment.