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How Much Does It Cost to Open Office Pride Franchise?

If you are looking towards opening an Office Pride Commercial Cleaning 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.

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Office Pride Commercial Cleaning was founded in 1992 and they began franchising in 1996, about 24 years ago. The current CEO is Todd Hopkins and they have their corporate head office at 3450 E. Lake Rd., #200 Palm Harbor, FL 34685, USA. The company owns and operates 145 franchises in the United States and 26 outside the country.

Office Pride Commercial Cleaning offer window, floor and carpet cleaning services for commercial facilities.

The name of the franchisor is Faith Franchising Company, Inc. An Office Pride janitorial service business sells and performs janitorial services, related services and ancillary goods in office buildings, retail buildings, medical buildings, commercial buildings, churches and other commercial facilities that require routine contract cleaning to create or maintain a clean work environment. The franchise offered is for the operation of a single unit. If prospective franchisees currently operate a commercial cleaning business they may convert their existing business to an Office Pride franchise.

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

  1. Initial Investment Range: $59,500 to $107,200
  2. Franchise Fee: $35,000
  3. Royalty Fee: 9 percent of revenue sales collected 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.

  1. 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 Office Pride Commercial Cleaning 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.

  1. Cleaning Equipment, Supplies, Materials and Ancillary Goods: $3,000 to $7,000
  2. Office Equipment and Supplies: $500 to $3,500
  3. Computer System: $0 to $1,500
  4. Insurance: $600 to $2,000
  5. Other Deposits: $100 to $2,700
  6. Professional Fees: $200 to $2,000
  7. Training Expenses: $0 to $2,100
  8. Licenses and/ or Bonds: $100 to $300
  9. Additional Funds – 3 months: $25,500 to $51,100
  10. Interest: 10 percent or less.
  11. Processing Fee: Currently, 1.5 percent of revenue sales collected per calendar week. After 1 year from completion of classroom training, the greater of 1.5 percent or $65 dollars will be collected per calendar week.
  12. Retreat Fee: $500 per year.
  13. Refresher Training Fee: $250 per day, on average.
  14. Additional Training or Support: $300 to $1,000 per day.
  15. Advertising Fund Fee: 1 percent of revenue sales collected.
  16. Advance Fee: $100 per advance request.
  17. Auditing Costs: Will vary under the circumstances (generally $300 to $500 per day).
  18. Customer Development Fee: Varies by customer account.
  19. Transfer Fee: $6,000
  20. Successor Franchise Fee: $2,000
  21. 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.
  22. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  23. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Office Pride Commercial Cleaning if it is held liable for claims arising out of your franchise operations.

  1. 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.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Office Pride Commercial Cleaning 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 Office Pride Commercial Cleaning is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: 25 percent off franchise fee
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. A successor unit franchise may be granted for a period of 10 years, if requirements are met.
  3. Financial Assistance: In order to assist credit-worthy franchisees to purchase and operate the business, the franchisor or an Area Developer may, but are not required to, finance 50 percent of the initial franchise fee, with a minimum down payment of 50 percent of the initial franchise fee.

In Summary,

  • Initial investments: $59,500 – $107,200
  • Liquid Cash Requirement: $85,000
  • Ongoing Initial Franchise Fee: $35,000
  • Ongoing Royalty Fee: 9 percent
  • Ad Royalty Fee: 1 percent