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Janitorial Franchising
The Most Successful Business Model By William Noel
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If you were to ask 100 janitorial companies if they use employees or franchisees, 95% would probably
say employees. If you went on to ask these same companies, how many are dealing with personnel problems, the same 95% would
have to step forward.
Do you see a correlation there?
In the janitorial industry,
the Employer-Employee model is the most common one, but it comes with a price. Here are just a few:
1.
High turnover. Typically, a janitorial company will experience 50% turnover within a given year. Half of the employees that
begin the year, will not be there at the end. This means that the owner has to hire someone to replace them, track down any
keys and equipment that they still have, inform the customer that a new person will be starting, deal with the ‘learning
curve’ that this new employee has, etc.
2. Low wages. In order to be competitive and to have funds
in reserve, employers typically pay their employees as little as possible. A study shows that the average janitor makes somewhere
between .50-.75 (fifty to seventy-cents) above the minimum wage. Another study also concluded that the closer an employee’s
wage is to the minimum wage, the more likely that employee is to quit and/or to steal. Which takes us to point 3
3.
High rates of theft. Many janitors know that they’re going to quit weeks before they actually do. This gives them time
to strategize their exit (i.e. plan on what they’re going to take with them. After all, the janitor is in the building
at night, usually with little or no supervision, and that they are expected to go in and out of the building… while
removing ‘trash’. Unfortunately, what they call ‘trash’ is sometimes a customers laptop or television.
When something comes up missing, the janitor is usually blamed. And 9 times out of 10, they’re usually guilty!
As the owner of a janitorial company that uses the Employer-Employee model, none of this surprises you. But,
what if you could change things, so as to decrease your turnover, increase wages, and all but eliminate theft, while being
more competitive and profitable at the same time.
Now you can!
5% of janitorial
companies have discover a better business model, the Franchise model, and they’re laughing all the way to the bank.
The Franchise model establishes a Franchisor-Franchisee relationship between you and the people that clean
your buildings. Companies like McDonalds, Subway and Dunkin’ Donuts have been using the Franchise model to grow their
business for years. In the janitorial industry Jani-King, CoverAll, and VanGuard cleaning have been leading the way.
Why do these, and other companies, use Franchising? Because it works!
A Franchisee is
the owner of their own company. They simply use your name, reputation, experience, etc. to get started. In return, they agree
to pay you a certain percentage of the gross billing. And, this percentage is taken off the top, allowing you to be paid before
they do.
Since the Franchisee is paid on the production of the account, and not by the hour, they’re
motivated to do the job right the first time. Furthermore, since they are the business owner, they have to buy their own equipment
and supplies, once again, removing that expense from you.
If an account is too big for them to clean
by themselves, they (not you) can choose to hire employees. The Franchisee is responsible for training, supervision, payroll
and misc. duties, as pertains to their employees.
However, if for any reason you or the customer is
not happy with their work, you have the legal right to remove them from that account, and replace them with another Franchisee.
William
Noel is the Sr. Area Developer for Alliance Maintenance. With more than 10 years experience in commercial cleaning, William
has become a highly sought after authority in janitorial sales and customer relations.
He also is heavily involved in
Internet Marketing, and is a certified SEO specialist, with emphasis in Pay-Per-Click and Keyword Research.
If you own and operate an office cleaning/ janitorial business,
or looking to start one,Here's a way you can explode your income in your office cleaning/janitorial business without even getting any new accounts.
It's a simple method I
use all the time. Rather than limiting your efforts to just finding new accounts, you simply expand the services you offer
to current clients.
Such as carpet cleaning, window or wall washing, and even plant care. You can also increase
your profits by selling some of the supplies to your clients as well. Such as refilling Soap dispenser's, paper towel,
and toilet paper containers, which adds an amount to the contract price. You can also replace their light bulbs, and trash
bags.
If you do the cleaning AND furnish the expendable supplies, your service contract will be a little more secure
since the client depends on you for both the cleaning work and supplies. So not only does your income absolutely sky-rocket
when you offer your clients additional services, but your client will depend on you more!
I can't stress this
enough. I'VE made a ton of money by offering additional services to my clients. If your new to the industry you may just
want to start out small and only offer the basic office cleaning services. That's what I did when I first got started.
Not only have I expanded by offering additional services to my
clients...But I'VE also expanded into residential carpet cleaning as well. This can be more of a seasonal business depending
on the city you live in.
But in the spring and Summer months residential carpet cleaning is very lucrative.
Keep in mind residential carpet cleaning (if done properly) does require a bit more equipment than office cleaning
to get started.
With an office cleaning business you really only need a few basic cleaning tools and supplies to
get started. A carpet business..again if done the right way..takes a little bit more of an investment.
Its not
a good idea to show up in a small car, and a rented cheap looking carpet cleaner machine. You should first look into buying
a van, or truck with a truck mount.
These are extra services that offices pay for in addition to the cleaning of
their office. You can put lots of extra money in your pocket.
You could make a business out of any one of these
extra "add-on" services such as carpet cleaning.
