Explaining Franchise Royalty Payments, Costs to Open a Commercial Cleaning Franchise, and Investment Incentives
May 25, 2021
Part of the ongoing responsibilities of any franchisee includes the payment of royalty fees as agreed upon signing. We try to keep Image One’s costs to open a commercial cleaning franchise considerably low so that our franchisees feel confident in the early going and each day that follows. Hear more about how much a cleaning franchise costs and what you get back for the money you invest.
What is a royalty fee?
As part of the franchise agreement, franchisees are expected to make a direct payment to the franchisor of an agreed-upon percentage of their monthly revenue, otherwise known as a royalty fee. These payments can be made monthly, quarterly, and even weekly, depending on the specifications laid out in the Franchise Disclosure Document. Franchisors will use their own methods to determine the cost, but the most common practice to do so is by taking a percentage of gross sales. Our franchisees pay 10% of their gross monthly revenue to Image One as a royalty fee in consideration of the use of our brand name and the support they enjoy. A further 5%-10% of gross monthly revenue is paid towards administration expenses, a marketing fund, and an optional payment assurance program.
What about my other costs to open a cleaning franchise?
The resources allocated toward your Image One franchise vary depending on the size of your investment, but we will walk you through everything well before you put pen to paper. Below we’ve mapped out the payments you can expect when starting your Image One franchise:
Franchise Fee: In order to gain entry into the Image One franchise system, the first financial requirement we ask of you is the franchise fee. With this payment, you will be given access to our branding resources as well as our proven business model and proprietary business management technology. Your franchise fee will make up a majority of your costs ranging between $59,900 and $119,000.
Training Expenses: Part of your costs to open a cleaning franchise with Image One includes your onboarding and training at our corporate offices. Depending on your unique circumstances, we estimate that these costs will range between $150-$3,000.
Supplies and Equipment: Our team is constantly researching new equipment and supplies to help you perform your job to our highest standard. This includes, but is not limited to, sanitizing and disinfecting equipment, state-of-the-art commercial vacuum cleaners, and much more. You’ll spend between $3,500-$10,000 on cleaning supplies and equipment when you start your business.
Our latest investment incentives include discounted costs for our 10th Anniversary in addition to cost reductions for qualifying veterans.
If you would like to learn more about the cost to open a commercial cleaning franchise, get in touch with a member of our franchise development team today.
