Do you want to open a mattress cleaning business by buying Clean Sleep franchise? If YES, here is how much it cost to open Clean Sleep franchise successfully. If you are looking towards opening a Clean Sleep 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.
Clean Sleep was founded in 2011 and they began franchising in 2013, about 7 years ago. The current CEO and founder of the company is Michael Ingle and they have their corporate head office at 1865 Mcgee Ln., Lewisville, TX 75077, USA and Clean Sleep also provides franchising opportunities.
Clean Sleep offers a revolutionary process that cleans and sanitizes commercial and residential customers’ mattresses onsite with chemical-free, green technology which leaves them dry when it’s done. Their one-of-a-kind technology has been proven to eliminate 99.9% of viruses, bacteria, allergens, pests, stains, odors, and contaminants, leaving your mattress like-new!
The state-of-the-art technology is one of a kind and is quickly gaining momentum across the U.S., Canada, and the globe. The company offers dedicated territories, on-going support and a low cost of entry, compared to many other franchise opportunities. Here are areas where you are expected to spend money and the costs associated with it;
Financial Investment Required to Open a Clean Sleep Franchise?
1. Initial Investment Range: $290,850 – $336,100
2. Franchise Fee: $30,000
3. Royalty Fee: 6 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Clean Sleep and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Clean Sleep if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Clean Sleep if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Clean Sleep is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company
- 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.
- Financial Assistance: Clean Sleep has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Initial Investment: $290,850 – $336,100
- Net-worth Requirement: $1,000,000 – $5,000,000
- Liquid Cash Requirement: $200,000 – $500,000
- Ongoing Initial Franchise Fee: $30,000 – $30,000
- Ongoing Royalty Fee: 6%
- Ad Royalty Fee: 1%