Do you want to open a carpet cleaning business by buying Stanley Steemer franchise? If YES, here is how much it cost to open Stanley Steemer franchise successfully. If you are looking towards opening a Stanley Steemer Carpet Cleaner Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Stanley Steemer Carpet Cleaner was founded in 1947 and they began franchising in 1972, about 48 years ago. The current President of the company is Justin Bates and they have their corporate head office at 5500 Stanley Steemer Pkwy., P.O. Box 8004 Dublin, OH 43016, United States. As of 2018, the company owns and operates 1,718 franchises in the United States.

Stanley Steemer Carpet Cleaner franchise is a familiar brand that has been providing carpet, upholstery, car cleaning services for more than 70 years. When you open a Stanley Steemer carpet cleaner franchise, you get a business with a superb reputation and rich history. Stanley Steemer carpet cleaning franchise opportunities are really huge due to many cleaning services the brand offers for sale.

Financial Investment Required to Open a Stanley Steemer Franchise

Here are areas where you are expected to spend money and the cost associated with it;

1. Initial Franchise Fee: Varies

In order to acquire a Stanley Steemer Carpet Cleaner franchise, you must pay Stanley Steemer an initial franchise fee. The amount of this fee will be negotiated between you and Stanley Steemer.

In negotiating this initial franchise fee, Stanley Steemer Carpet Cleaner will consider factors such as the population of the area, demographics of the population, trends in population, existing and projected competition, the existing Stanley Steemer Carpet Cleaner advertising and/or existing sales in the area (if any), average household income, and related factors.

Please note that as a general rule, the initial franchise fee is approximately $20,000 for each 100,000 in population or fraction of 100,000 in population in your area. Typically, the range of initial franchise fees charged to franchisees is $20,000 to $100,000.

2. Option Fee: Not to exceed 10 percent of the estimated initial franchise fee

If Stanley Steemer agrees, it may allow you to reserve an area prior to becoming a Stanley Steemer franchisee for a period of up to 6 months by paying a nonrefundable option fee not to exceed 10 percent of the estimated initial franchise fee.

Please note that This option fee will be applied toward payment of the initial franchise fee if you purchase a franchise and, with Stanley Steemer’s consent, you can transfer this fee to reserve another area or purchase another Stanley Steemer Carpet Cleaner franchise.

3. Stanley Steemer Carpet Cleaning Machines and Distinctive Van-Type Vehicles: Varies

Please note that In addition to the initial franchise fee, you must purchase one or more Stanley Steemer Carpet Cleaning Machines and distinctive van-type vehicles from Stanley Steemer. The Stanley Steemer Vehicle equipped with a Stanley Steemer Carpet Cleaning Machine and/or bearing the Trademarks is referred to in the disclosure document as the “Stanley Steemer Vehicle.”

The number of Stanley Steemer Vehicles will be agreed to by you and Stanley Steemer Carpet Cleaner based upon the size of your area and your business plan. The cost of each Stanley Steemer Vehicle can vary from $55,700 to $62,000 based upon how you elect to accessorize it.

Further, you must purchase certain equipment to perform water damage mitigation and restoration services. The cost of this equipment can vary from $5,000 to $25,000 depending upon the size of your area and your business plan.

You will also need certain cleaning chemicals, cleaning supplies, office supplies, advertising materials, and similar items to begin your Stanley Steemer Carpet Cleaner business. These can be purchased from Stanley Steemer Carpet Cleaner or directly from a supplier approved by it.

The total cost of an initial inventory of these items will vary from $4,500 to $5,500, depending upon the size of your area and your business plan. You may also acquire the PowerMagic and Nimbus Mobile software from Stanely Steemer. There is currently no License Fee to acquire and/or use the software. The fee for hardware setup/conversion is $495 per person per day.

4. Stanley Steemer Duct Cleaning Service License: $10,000

In order to acquire a Stanley Steemer Duct Cleaning Service license to add on to your existing Stanley Steemer Carpet Cleaner business, you must pay Stanley Steemer in lump sum an initial license fee of $10,000 when you execute the Addendum to Stanley Steemer International, Inc. Franchise Agreement for Air Duct Cleaning Service (the “Air Duct Cleaning Addendum”).

Please note that In addition to the initial license fee, you must purchase one or more sets of Stanley Steemer air duct cleaning equipment (“Air Duct Cleaning Equipment”) and distinctive duct cleaning van-type vehicles from Stanley Steemer or a vendor approved by it.

  1. Monthly Royalty: Monthly royalty payment equal to 7 percent of gross sales (10 percent in select parts of Ohio and Indiana) and the Due Date is Payable monthly on the 15th day of the next month.
  2. Minimum Annual Royalty: If the total of monthly royalty payments paid by you during a one-year period are not at least equal to the Minimum Annual Royalty amount negotiated by you and Stanley Steemer Carpet Cleaner as set out in your Franchise Agreement, you must pay Stanley Steemer Carpet Cleaner the difference. The Due Date is Payable within 30 days following the end of each Minimum Annual Royalty Year.
  3. Additional Royalty: 0 to 3 percent of total gross sales and the Due Date is Payable monthly on the 15th day of the next month.
  4. Late Payment Fee: The lesser of 18 percent interest per annum or the maximum amount allowed under applicable law on all amounts not paid when payment is due to Stanley Steemer and the Due Date fee is When payment is overdue.
  5. Advertising: 10 percent of total gross sales and the Due Date for this fee is Payable as incurred, but total amount must be spent within calendar year.
  6. National Advertising Fee: 2 percent of monthly gross sales and the Due Date for this fee is Payable monthly on the 15th day of the next month.
  7. 1-800-STEEMER and Location Based Call Routing Fees: Actual cost of usage on per minute basis. Stanley Steemer Carpet Cleaner estimates actual cost to be between $.05 and $.08 per minute and the Due Date is 30 days after billing.
  8. National Customer Contact Center Usage Fees: Actual cost of usage on per minute basis. Stanley Steemer Carpet Cleaner estimates actual cost to be $.85 to $.90 per minute and the Due Date is 30 days after billing.
  9. Additional Training Fee: $185 to $625 per person for each training session and the Due Date for this fee is 30 days after billing.
  10. Transfer Fee: $5,000 and the Due Date for this fee is Before transfer is effective.
  11. Renewal Fee: $10,000 and the Due Date for this fee is Before renewal is effective.
  12. Audit Fee: Actual cost of audit, plus late payment fee. Stanley Steemer Carpet Cleaner estimates the actual cost of an audit to range between $4,000 and $8,000 and the Due Date for this fee is Immediately upon billing.
  13. Basic Training Fee Related to PowerMagic and Nimbus Mobile: $150 and the Due Date for this fee is Immediately upon billing.
  14. Insurance: Cost of insurance and the Due Date for this fee is Immediately upon billing by insurance company.
  15. Indemnification of Stanley Steemer for Expenses of Claims: The amount of all damages, losses, and expenses that Stanley Steemer incurs in connection with legal actions arising out of your ownership, operation, construction, or improvement of your Stanley Steemer business. The Due Date for this fee is Upon receipt of invoice.
  16. Testing and Inspection: The costs of testing products, supplies, and other items used in your Stanley Steemer business; and following an inspection of your business premises, equipment, and cleaning methods, the reasonable costs and expenses incurred by Stanley Steemer in the removal, replacement, repair, or remodel of equipment and products that do not conform to Stanley Steemer specifications

The Due Date for this fee is Upon receipt of invoice; no later than the date the next royalty payments are due under the Franchise Agreement.

  1. Ongoing Purchases From Stanley Steemer: The typical franchisee pays Stanley Steemer $12,702 to $44,455 annually for ongoing purchases from Stanley Steemer and the Due Date for this fee is Upon receipt of invoice.

Please note that these ongoing purchases may include cleaning products, supplies, equipment, and machinery, as well as certain accessory cleaning equipment, Stanley Steemer Vehicle accessories and replacement and spare parts, replacement and spare parts for your Stanley Steemer Carpet Cleaning Machine, Stanley Steemer Professional Carpet and Upholstery Spot Remover, and Stanley Steemer Odor Out.

  1. Veteran Incentives: This is open for negotiation
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Stanley Steemer Carpet Cleaner offers in-house financing to cover the following: franchise fee, and startup costs. Stanley Steemer Carpet Cleaner also has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, and inventory.

In Summary,

  • Initial Investment: $111,665 – $259,575
  • Ongoing Initial Franchise Fee: $100,000
  • Ongoing Royalty Fee: 7 percent
  • Ad Royalty Fee: 2 percent
Solomon. O'Chucks