Do you want to start a Kleenit franchise and want to know the fees, agreement, details? If YES, here’s how much it will cost to buy a Kleenit franchise for sale.
The commercial cleaning industry may not be a recession proof industry, but it has been resilient, and has emerged, not much scarred by tough economic conditions. The industry is also reputed to be one of the fastest growing industries in the economy of the United States. As of 2010, the cleaning industry was estimated to have raked in more than $80 billion into the economy of the country.
A lot of entrepreneurs wonder if the commercial cleaning industry is worth their time because it is flooded with small privately operated businesses. But the trend started changing in the 90s as people started taking note of the potentials of the industry and started to launch larger companies.
The entrant of these larger companies further ballooned profits in the industry, and currently the cleaning industry is worth over $78 billion, and contract cleaning grew at an average rate of 6.6 percent.
It should be noted that franchise cleaning companies account for 10 percent of the total revenue that occur in this industry, and the industry employs more than 1.7 million people in the United States.
Cost of Buying a Kleenit Franchise – A Complete Guide
Kleenit is a company that offers commercial cleaning services, and if you want to enjoy the numerous benefits that come with the cleaning industry, then you may want to consider purchasing a Kleenit franchise. Find below the history and cost implications of owning a Kleenit franchise.
Details to Note When Intending to Acquire a Kleenit Franchise
Anyone who wants to be part of the cleaning industry by acquiring a Kleenit franchise must take note of the following details;
- Franchise Fee – 60,000
Equipment Needed and Costs
- Motor Vehicle – $20,000
- Hot and cold blaster c/w reel, hose and lance – $8,890
- Turbo lance attachment – $180
- Whirlaway floor cleaner 20” – $1,650
- Telescopic lance (7mtr) c/w gutter cleaning attachment – $450
- Foaming gun and accessories – $450
- 400 Litre water tank and fittings – $900
- Extension ladder – $250
- Sand lance – $241
- Assorted tools – $500
- Water hose – $60
- Signwriting – $1,500
- Business startup Costs
- Business name registration – $95
- Legal fees – $1,800
- Advisers fees – $800
- Licences – $300
- Stationery – $350
- Miscellaneous – $100
- Initial Stock including some consumables – $900
- Productive Service Hours Per Week – $30 to $50
- Royalties – 15% of Gross Sales – $450 to $750
- Marketing Fees – $140
- Insurance – $40
- Product costs – $300 to $500
- Equipment Maintenance – $25 to $40
- Local Area Marketing – $22 to $28
- Fuel and Oil (Machinery) – $30 to $50
- Stationery and Postage – $11 to $14
- Telephone – $15 to $25
- Motor Vehicle Expenses – $100 to $140
- Accounting Fees $12 to $18
- Bank Fees – $6 to $9
- Uniforms – $6 to $9
Training and Support
Kleenit offers its franchisees full time training that lasts for one week in its training facility in Perth. The company engages business consultants to work with franchisees to provide them business training and support. Franchisees initially come in contact with the business consultants during the first stages of the franchise inquiry.
Not only do the consultants help franchisees with inquiry about the franchise, but they also work closely with them to help them grow their business.
In the course of the training, the franchisee will be given a comprehensive induction to all aspects of the business including:
- Hands on training with the equipment including how it is used, maintained and checked.
- How to avoid damage to property and where the risks lie.
- How to price and quote a job so as to charge the right amount of money.
- The law and legislation as it relates to the industry. What you can and can’t do and what you need special licenses and training for.
- Full safety training not only in the use of the equipment, but in the work processes.
- Full environmental safety training on how to minimize damage to the environment from use of chemicals.
- Workplace procedures and checklists developed to make their businesses effective, efficient and compliant with all rules and regulations
- How to process the paperwork from your job so you get paid with the minimum of fuss
- Business training in how to run and grow your business.
Group Based Marketing
Each franchisee is required to contribute a flat monthly contribution fee to the group marketing fund which enables Kleenit continue its marketing efforts.
This group marketing does not in any way stop a franchisee from conducting independent marketing on his or her company in order to build relationships with potential clients.
A Kleenit franchise gives the operator the exclusive rights to operate within a designated territory. Kleenit franchise territories are determined using census-based demographic information. The country is broken down into units of opportunity for easy administration. These unit considerations are not only done based on the population but on the land use of each given area.
A franchisee can be allowed to work outside his or her territory if there is a vacant territory nearby, and if he or she was invited by another franchisee.
Buying a Kleenit Franchise – How to Be Part of Kleenit Enterprises
An entrepreneur can be part of Kleenit enterprises through starting a company from the scratch, through buying an existing business, and through buying a franchise. Kleenit estimates that starting from the scratch is the riskiest way of starting the business, as it has only 25 percent of business success, while buying a franchise is the easiest, having about 95 percent of business owners remaining in business after 5 years.
Skills a Potential Entrepreneur Must Possess to Qualify to Be a Kleenit Franchise Owner
The following skills are required from an intending Kleenit franchisee;
- A strong work ethic with a focus on customer service
- Good communication skills
- Possess the desire to build a strong business
- Embrace the culture of team building
Help Offered to Franchisees
Kleenit helps franchisees run their businesses effectively by handling all the invoicing and debt collection on behalf of their franchisees. Once a job is completed, Kleenit’s head office issues the invoice and collects the payment. Once the payment is received, it is quickly disbursed to the franchisee concerned, but the company collects its royalty fees first.
Again, whenever Kleenit secures a state or local government contract, it passes it to the franchisee that is located in that geographical area. The particular franchisee involved is free to solicit the help of other nearby franchisees to execute the contract if it is quite huge and requires a lot of man power.
6 Steps to Starting a Kleenit Franchise
Starting a Kleenit franchise can take approximately 90 days from application to opening the franchise unit.
- Initial inquiry: an intending franchisee has to first of all complete the online application form. After filling and submitting the form, the applicant would receive information on the franchise opportunity.
- Meeting: if the application is received and accepted, the applicant is invited to meet with a member of the Kleenit team for in-depth discussion and for various stages of the interview. This process can take between 7 to 10 days to complete.
- Pay the fee and receive the company FDD: if the interviews were successful, the applicant would be required to pay a refundable deposit of $1,500. After the payment, the applicant would be given copies of the franchisee disclosure document, and the franchise agreement. The applicant is required to go through the FDD and franchise agreement with a solicitor or accountant so no aspect would be left out. This process takes one to two days.
- Pay the franchise fee and other payments: here the franchise is required to pay $4,000 for the preparation of the franchise agreement in the franchisee’s name. The fee could also be deducted from the overall franchise fee. The applicant is given 14 days to pay. The franchise is equally required to pay the balance of $61,000 including GST.
- Training: after fulfilling all these requirements, the franchisee is now ready to proceed for training. The training is a one week affair that takes place in the Kleenit training academy. Kleenit training academy schedules franchise training every two months.
- Start up: the franchisee is now ready to start his or her business. The franchisee must endeavor to generate enough publicity for the unit in order to start on a profitable note.
A Brief History About Kleenit Franchise
- Founder – Peter Robinson and Mark Wood
- Date of inception – 1987
- Headquarters – Kewdale, Western Australia, AU
- Started franchising – 2006
Kleenit enterprises started because Peter and Mark saw a niche that needed to be filled. Prior to Kleenit, Peter Robinson was running a graffiti cleaning company which he started in 1992. He worked in the company for 12 years steadily pushing it to profitability, though he operated on a small scale. Society regarded graffiti as an abuse of public property, and so cleaning companies were continually commissioned to take off graffiti on public walls.
Mark Wood in his own was the director of an electrical wholesale company that has branches all over the city and country. The company he worked for was called Rexel, and it had it had taken firm root in the Australian market. The company became so popular that they started controlling major projects for some of the largest companies in Australia, including electrical contractors, major industrial and commercial contractors. Mark was responsible for the operation of all Rexel branch outlets, major projects and all contracts in Western Australia.
Peter and Mark got together and they started Kleenit by buying over the company in 2004. Peter brought his first-hand knowledge in the cleaning industry, and Mark brought his vast business and financial experience into the fray, and together the duo was able to run a successful business.
After the purchase in 2004, the company did not start up immediately in full swing. Peter and Mark had to spend two years behind the scenes to refine their working model so as to be able to run the kind of business they had in mind. Within this time, they created all the manuals that are currently used to run the business, as well as other support resources that were meant to run the Kleenit franchise group.
Kleenit specializes in various range of cleaning services including outdoors, indoors, car detailing, professional floor and furniture cleaning and every other kind of cleaning that comes to mind.
By 2006, Kleenit had garnered quite some publicity that it attracted its first franchise. Because the company already had systems set in place, (even though still in writing) to handle it franchisees, setting up its first franchise was almost a walk in the park.
In this same 2006, the company’s turnover had increased tremendously that it was averaging $1.2 million, and its reputation and cleaning capabilities kept spreading. The fact that the Kleenit franchise proved profitable and successful brought other franchisees into the company.
The Kleenit franchise offered franchisees a wide range of income streams and the training necessary to run the business and employ multiple staff. Kleenit provides both indoor and outdoor cleaning services and they include; high pressure cleaning, graffiti removal, anti-graffiti coating, pavement cleaning and scaling, building wash-downs, graffiti management programs, roof and gutter cleaning, factory and floor cleaning and coating, anti-slip flooring, fire (smoke) repair damage, removal of chewing gum and other services.
Its domestic cleaning involves; high pressure washing of driveways, pool surroundings, patios and decking, roof, gutter and house washing. They also apply sealers and coloured paints to driveways, concrete areas and garage floors.
Its commercial or industrial cleaning includes; pressure cleaning of factory floors, exterior building washing (factories, hotels, fuel stations, shopping centers and markets), and applying floor coatings to warehouses, and anti graffiti coatings to commercial structures.
Kleenit also offers government services which include graffiti removal for council and state governments, high pressure cleaning of paved areas such as parks and foreshores, council buildings, schools, boat ramps, railways and other government operated facilities, and applying anti-graffiti coating to bridges and other assets.
By 2012, Kleenit had a turnover of almost $10 million, many thanks to its numerous services. In the same year, the company franchise outlets reached 35, and Kleenit had become a leader in the cleaning industry.
Being that one of Kleenit’s core service areas is graffiti removal, the company has consistently, over the years, developed its own unique blend of graffiti removal products. This became necessary because some graffiti removal products contain dangerous chemicals that are hazardous to the health, and Kleenit would not want to expose its workers and customers as well as the public to danger.
Over the last decade years, Kleenit engaged a chemist to blend 3 graffiti removal products that are environmentally friendly and also bio degradable. The chemicals in use have been refined and re-blended over the years because graffitists now use new substances to deface public properties.
These proactive measures enabled Kleenit to stay ahead of the competition. The company has made its business so unique that an operator doesn’t need to tie his capital down in stock or cleaning products. Apart from some tins of paint, a Kleenit staff carries with him only 4 chemicals to his site and the chemicals include;
- Delicate – (slow release for sensitive surfaces)
- Wipe off – (medium release)
- Eraser – (aggressive agent for brick and concrete surfaces)
- Force clean – (pavement cleaning detergent)
Other chemicals would be needed from time to time depending on the job requirement, but basically; these four are needed in a job to job basis.
Kleenit also has a strong internet presence that enables it secure jobs all around the country for its franchisees. Once a job is received, it is sent straight to the franchisee in the territory. The company spends up to $10,000 each month on Google and words advertising. This pay per click advertising enables them to accurately target people who are already searching for the type of work they perform.
In 2013, Kleenit launched its iPad Customer Relationship Management (CRM) system to help streamline the entire business process from quoting to payment collection. The system also has automated marketing functions that automatically contacts past clients with the thought to secure repeated jobs.
Kleenit makes over $100,000 investment in technology to help out its franchisees.