What Are Operating Procedures of Coverall Franchise
Ever wondered how a commercial cleaning franchise like Coverall operates and how you can become a part of it? Discover the ins and outs of this established business model, from initial investment to ongoing support, and see if it aligns with your entrepreneurial goals. Explore our Coverall Franchise Business Plan Template to get a head start on your journey.
| # | Operating Procedure | Description |
|---|---|---|
| 1 | Managing Finances | Coverall centralizes billing and collection, invoicing customers directly and deducting all applicable ongoing fees from gross revenue before depositing the net amount into the franchisee's account. This streamlined process ensures predictable cash flow and minimizes administrative burdens for the franchisee. |
| 2 | Maximizing Profitability | Profitability is enhanced through high customer retention, efficient supply cost management, and upselling of specialized cleaning services. Maintaining a strong focus on service quality, adhering to Health-Based Cleaning System® standards, is crucial for retaining the approximately 88% of customers that top-performing franchisees retain annually. |
| 3 | Evaluating Long-Term Growth | Franchisees can expand their business by purchasing additional customer account packages or developing their own client base, with the franchisor supporting the transition to multi-unit management. The resale value of a Coverall franchise is directly tied to its consistent monthly gross revenue and profitability, with a clear process for transferring ownership. |
The initial investment for a Coverall franchise ranges from $17,917 to $62,908, with a franchise fee between $15,570 and $40,320. Franchisees are required to have a net worth of $100,000 to $500,000. The ongoing fees include a royalty fee of 5% and a marketing fee of 2% of gross revenue.
The average annual revenue per unit is reported at $16,536, with a median of $45,000. However, the range can be as low as $3,000 and as high as $10,000 annually for individual units. The system anticipates a breakeven time of approximately 12 months and an investment payback period of 24 months.
The number of franchised units has seen a decrease in recent years, with 6,483 in 2021, 5,916 in 2022, and 5,654 in 2023. Notably, Coverall has had zero corporate-owned units throughout this period, indicating a purely franchised model.
Regarding financial performance, the average annual revenue across all units is substantial, with a reported $93,459,000. The cost of goods sold (COGS) is approximately 6.79% of revenue, leading to a gross profit margin of 93.21%. Operating expenses account for 84.23% of revenue, resulting in EBITDA of 15.74%.
The average running expenses for a franchise unit include various insurance costs such as General Liability Insurance ($0 - $1,479.84), On The Job Accident Insurance ($0 - $960), Non-Conviction Janitorial Fidelity Bond ($23.80 - $47.80), Automobile Insurance ($500 - $5,000), and Workers' Compensation Insurance ($104 - $5,680). Vehicle costs are estimated between $225 - $2,300 annually, contributing to the total running expenses.
Key Takeaways
- Coverall operates on a franchise model where it sells and supports franchise units, which then perform cleaning services for commercial clients sourced by Coverall's regional support centers.
- The initial investment for a Coverall franchise ranges from approximately $17,917 to $62,908, covering the franchise fee, starter equipment, and initial supplies.
- Franchisees are required to pay ongoing fees, including a Royalty Fee of 5% and a Marketing Fee of 2% of monthly gross receipts, plus potential charges for procuring customer accounts.
- While Coverall does not provide a universal earnings claim, the FDD indicates that franchisees who purchase larger packages with higher initial monthly business can achieve higher annual gross revenues, with potential for 10-15% annual growth.
- Key advantages include a low entry cost, a guaranteed initial customer base, and comprehensive training and support, with the commercial cleaning industry being largely recession-resistant.
- Potential drawbacks include a fee-heavy structure that can impact net profit margins and a reliance on the franchisor for new business acquisition.
- The franchise agreement is a legally binding contract, typically for 20 years, outlining fees, territories, services, and the franchisor's role in customer acquisition.
What Is The Business Model Structure?
The Coverall franchise operates on a distinctive model designed to support franchisees in delivering commercial cleaning services. The franchisor, Coverall, is responsible for selling and supporting franchise units. These units then perform the actual cleaning for commercial clients. Crucially, Coverall's regional support centers handle the sourcing of these customers. This structure allows franchisees to concentrate on service delivery rather than client acquisition, a significant benefit for those looking to enter the commercial cleaning franchise business.
A core element of this franchise model, particularly as of early 2025, is the provision of an initial package of customer accounts to new franchisees. This approach provides immediate revenue streams. For an initial investment starting around $18,787, franchisees are guaranteed a specific amount of initial monthly gross revenue. This guaranteed revenue can range from as little as $500 to over $7,000, depending on the specific package chosen at the time of investment. This upfront client base is a key differentiator for Coverall franchise opportunities.
Underpinning the entire system is Coverall’s proprietary Health-Based Cleaning System®. This scientifically validated protocol distinguishes the brand within the competitive commercial cleaning franchise space. It focuses on reducing the spread of illness-causing germs, a critical selling point that continues to drive demand, especially in a post-pandemic market. The commercial cleaning industry itself is projected for robust growth, with an estimated 6% increase expected in 2025, highlighting the market's receptiveness to specialized cleaning solutions.
What are the main franchisee requirements?
The primary requirements for becoming a Coverall franchisee are largely financial, necessitating the ability to cover the initial investment and franchise fees. Beyond financial capacity, there's a strong emphasis on a commitment to adhering to the brand's established operational procedures and cleaning protocols. It's important to note that prior cleaning experience or previous business ownership is generally not a prerequisite, making these franchise opportunities accessible to a wider range of aspiring entrepreneurs.
Financially, prospective franchisees in 2025 must meet specific investment criteria. The total Coverall franchise investment requirements can range from approximately $18,787 to $51,460. This total investment includes a minimum cash requirement, which typically stands around $5,000. The final cost is influenced by the size and scope of the initial customer account package selected by the franchisee.
Beyond the financial commitments, candidates are required to successfully complete a comprehensive training and support program offered by Coverall. This mandatory training is crucial for ensuring brand consistency and operational excellence across all franchise units. The curriculum covers key areas such as the Health-Based Cleaning System®, essential business administration practices, and customer service standards, equipping franchisees with the knowledge needed to succeed.
Key Considerations for Aspiring Franchisees
- Financial Readiness: Ensure you meet the minimum cash requirement and have access to capital for the total investment, which can range from $18,787 to $51,460.
- Commitment to Training: Be prepared to fully engage with the mandatory training program, which is vital for understanding the Health-Based Cleaning System® and operational standards.
- Understanding the Model: Recognize that the franchisor provides customer accounts, allowing you to focus on service delivery and operational efficiency.
For those interested in the specifics of launching their business, a detailed guide is available: How to Start a Coverall Franchise in 7 Steps: Checklist.
What Is The Coverall Franchise Cost?
Understanding the financial commitment is a crucial first step when considering any franchise opportunity. For those interested in a commercial cleaning franchise, the Coverall franchise cost is a key factor in evaluating business ownership.
How much is the initial investment?
- The total initial investment to launch a Coverall franchise in 2025 typically falls between $18,787 and $62,908. This range accounts for all essential startup components.
- Within this initial investment, the franchise fee can vary from $15,570 to $40,320. Additionally, you'll need to budget for a starter equipment and supplies package, estimated between $2,187 and $4,560. The remaining portion covers initial operating expenses for the first three months, roughly $1,000 to $2,500.
- For those seeking to reduce upfront costs, financing options are available for a portion of the initial franchise fee. Furthermore, specific franchise opportunities are offered to veterans, which include a significant 20% discount on the franchise fee, making business ownership more accessible.
What are the ongoing franchise fees?
- As a Coverall franchisee, you are obligated to pay ongoing fees based on your gross revenue. These payments are directed to the regional support center and are designed to fund the continuous support, billing, and administrative services provided by the franchisor.
- In 2025, the primary ongoing fees include a Royalty Fee of 10%, a Management Fee of 5%, and a Franchisee Web/Tech Fee of 1% of your monthly gross receipts. There's also a fee for customer account procurement, which can be as much as 45% of the first month's service charge.
- These fees are clearly outlined in the Coverall franchise agreement. They cover vital services such as invoicing, collections, marketing initiatives, and access to proprietary technology, all of which are integral to the franchise model's operational framework.
Tips for Evaluating Franchise Costs
- Analyze the full investment: Don't just look at the franchise fee; consider the total initial investment and ongoing fees. The FDD provides a detailed breakdown.
- Understand revenue potential: While initial investment is key, research the average revenue per unit. For instance, the median annual revenue per unit was reported at $45,000 in recent data.
- Explore financing and discounts: Investigate financing options for the franchise fee and inquire about any available discounts, such as those for veterans.
When considering this commercial cleaning franchise, it's also beneficial to explore other options. You can learn more by reading What Are Some Alternatives to the Coverall Franchise?
Is Coverall A Good Franchise Investment?
When considering franchise opportunities, understanding the income potential is crucial. For the Coverall franchise, this potential is directly tied to the size of the initial franchise package you purchase and your own drive to grow your customer base beyond the accounts provided by the franchisor. While a universal earnings claim isn't published, their 2024 Franchise Disclosure Document (FDD) offers financial performance representations for some support centers. For instance, franchisees who opt for larger packages, generating over $5,000 in initial monthly business, often experience higher annual gross revenues. These can further grow by an estimated 10-15% annually through acquiring new accounts.
Prospective franchisees can get a clearer picture by looking at the guaranteed gross revenue associated with each investment package. A package guaranteeing $3,000 in monthly business offers a baseline annual revenue of $36,000 before any fees are deducted. This provides a solid starting point, with significant upside potential achievable through operational excellence and strategic growth.
What are the pros and cons?
The Coverall franchise model presents several compelling advantages, particularly for those new to business ownership. The entry cost is relatively low, with initial investments ranging from $17,917 to $62,908. A significant pro is the guaranteed initial customer base provided, which helps mitigate early-stage risk. Furthermore, the comprehensive training offered significantly lowers the barrier to entry. The robust support system is another key benefit, as the franchisor handles crucial aspects like sales, billing, and collections. This allows franchisees to concentrate their efforts on delivering quality cleaning services.
The commercial cleaning industry itself is notably recession-resistant. In fact, demand for specialized sanitation services saw a 9% growth post-2020, a trend that is expected to continue. This resilience makes it an attractive sector for business owners. For those interested in learning more about the process, you can find detailed steps at How to Start a Coverall Franchise in 7 Steps: Checklist.
However, there are also potential drawbacks to consider. The fee structure can be quite significant, with combined royalties and marketing fees potentially exceeding 15% of gross revenue. This can impact net profit margins. Another point to consider is the franchisee's reliance on the franchisor for new business acquisition. While this provides a steady stream of leads, it may be a limitation for individuals who desire complete autonomy in growing their cleaning franchise business.
Key Considerations for Franchise Investment
- Investment Range: Be prepared for an initial investment between $17,917 and $62,908, covering franchise fees, cash required, and other startup costs.
- Revenue Potential: While the median annual revenue per unit was $45,000 in 2023, proactive franchisees can aim for higher figures by expanding their client base.
- Operational Support: Leverage the franchisor's support in sales and billing to focus on service delivery and customer satisfaction.
- Industry Stability: The commercial cleaning sector offers a degree of stability, as demonstrated by its consistent demand, even during economic downturns.
Operating Procedure to Becoming a Coverall Franchisee Process
What are the steps to ownership?
Embarking on the journey to own a commercial cleaning franchise, specifically a Coverall franchise, involves a structured process designed to ensure both parties are a good fit. The initial step is straightforward: submitting an inquiry. Following this, you'll have an introductory call with a Coverall representative. This conversation is crucial for discussing the available franchise opportunities and for them to review your qualifications. This vetting process typically assesses your financial stability and overall business aptitude, ensuring you meet the fundamental requirements for this cleaning franchise business.
Once you've cleared this initial hurdle, qualified candidates are provided with the Franchise Disclosure Document (FDD). This comprehensive document is mandated by law and contains 23 detailed sections explaining the intricacies of the Coverall franchise agreement. For 2025, Coverall places a strong emphasis on ensuring candidates fully grasp the financial and operational commitments involved, often requiring a dedicated 14-day review period for thorough understanding. This period is vital for making an informed decision about your potential business ownership.
The final stages to becoming a Coverall franchisee involve securing the necessary financing, which can range from $17,917 to $62,908 based on the FDD data. Once financing is in place, you will sign the franchise agreement and pay the initial Coverall franchise fees, which typically fall between $15,570 and $40,320. The process culminates with completing a mandatory multi-phase training program, equipping you with the skills and knowledge needed before you are assigned your initial block of customer accounts, marking your official entry into this commercial cleaning franchise.
What is in the franchise agreement?
The franchise agreement is the cornerstone of your relationship with the franchisor. It's a legally binding contract that clearly outlines the rights and responsibilities of both the franchisee and the franchisor. For this particular cleaning franchise business, the agreement typically spans a term of 20 years, providing a long-term framework for your business ownership.
Key clauses within the 2025 agreement provide clarity on several critical aspects. These include the detailed fee structure, which encompasses the initial franchise fee, royalty fees (a standard 5% for new units), and marketing fees (a 2% contribution). The agreement also defines your territory, which is generally non-exclusive, and specifies the exact services you are authorized to perform using the proprietary Health-Based Cleaning System®. Furthermore, it clarifies the franchisor's role in providing you with customer accounts, a significant benefit for those exploring franchise opportunities.
Beyond the operational specifics, the agreement also meticulously details the conditions under which the franchise agreement can be terminated, your rights for renewal, and the procedures for dispute resolution. This comprehensive legal framework ensures that both parties understand their obligations and the path forward, making the Coverall franchise model transparent for potential owners.
Tips for Reviewing the Franchise Agreement
- Seek Legal Counsel: Always have the franchise agreement reviewed by an attorney specializing in franchise law before signing.
- Understand All Fees: Clarify all initial and ongoing fees, including royalties, marketing funds, and any other potential charges.
- Territory Rights: Pay close attention to the details of your territory, including whether it is exclusive or non-exclusive.
- Support and Training: Note the specifics of the training and ongoing support provided by the franchisor.
- Termination and Renewal: Ensure you fully understand the conditions for termination and the process for renewing your agreement.
When considering this commercial cleaning franchise, it's important to understand the investment. The initial investment can range from $17,917 to $62,908. The required cash upfront is the same range, $15,570 to $40,320, and the net worth requirement typically falls between $100,000 and $500,000. For those interested in the financial performance, the average P&L shows a gross profit margin of 93.21%. Understanding how much a Coverall franchise owner makes is also a key consideration; you can explore this further by reading How Much Does a Coverall Franchise Owner Make?.
| Financial Metric | Amount ($) | Percentage of Revenue (%) |
|---|---|---|
| Average Annual Revenue per Unit | Between $3,000 and $10,000 (lowest to highest reported) | N/A |
| Gross Profit Margin | 93.21% | 93.21% |
| EBITDA | 15.74% | 15.74% |
| Expense Type | Annual Amount ($) |
|---|---|
| Total Initial Investment | 17,917 - 62,908 |
| Royalty Fee | 5% |
| Marketing Fee | 2% |
Operating Procedure to Coverall Franchise Training and Support
What training is provided?
When you consider the Coverall franchise, a significant component of its value proposition is the structured training and ongoing support provided to franchisees. The initial training program is mandatory and designed in multiple phases. It typically requires about 10-20 hours to complete. This training isn't just a quick overview; the 2025 curriculum is quite comprehensive. It delves into crucial areas like business management, essential financial record-keeping, and customer service best practices. A core element is the hands-on technical training focused on Coverall’s proprietary Health-Based Cleaning System®. This includes specialized modules tailored for cleaning protocols in medical facilities, which constitute over 30% of their client base, highlighting the importance of specialized knowledge in this commercial cleaning franchise business.
The training methodology is a blend of structured classroom instruction, often held at a regional support center, and practical on-the-job experience. This dual approach ensures that every new owner gains a thorough understanding of the operational standards and quality expectations before they begin servicing their first client. This is a critical step in the Coverall commercial cleaning franchise details, ensuring consistency and quality across the network.
What ongoing support is offered?
Beyond the initial training, franchisees receive continuous operational and administrative support directly from their local Coverall Support Center. This is a key Coverall franchise owner benefit that distinguishes their franchise model. For instance, in 2025, the support centers actively assist with customer billing and collections. This administrative function is estimated to save franchisees between 10-15 hours of administrative work each month, allowing them to focus more on business growth and client relationships. The support center also spearheads national and regional marketing initiatives and provides ongoing sales support, which is invaluable for franchisees looking to bid on and acquire new accounts. This proactive approach to lead generation is a significant advantage for those exploring franchise opportunities.
Furthermore, franchisees benefit from access to continuous training opportunities to stay updated on industry best practices and new cleaning technologies. Regular business reviews with a dedicated franchise consultant offer personalized guidance and strategic planning. A dedicated support line is also available for any operational questions that may arise, ensuring that franchisees feel supported throughout their business ownership journey. For those interested in the financial aspects, understanding the initial investment is crucial; you can learn more about this by reading How Much Does a Coverall Franchise Cost?
Tips for New Franchisees
- Embrace the Training: Fully commit to the initial training program. The Health-Based Cleaning System® and business management modules are designed to set you up for success.
- Leverage Support Services: Don't hesitate to utilize the administrative and marketing support offered by your local support center. This is a significant part of the Coverall franchise model.
- Focus on Client Acquisition: While the franchisor assists with leads, actively participate in local networking and sales efforts to grow your client base efficiently.
| Support Area | Initial Training Focus | Ongoing Support |
|---|---|---|
| Operations | Health-Based Cleaning System® protocols, specialized cleaning for medical facilities | Operational guidance, support line for questions |
| Administration | Financial record-keeping, customer service | Billing and collections, administrative assistance |
| Marketing & Sales | N/A | National/regional marketing, sales support for new accounts |
| Financial Aspect | Data Point |
|---|---|
| Royalty Fee | 5% of gross revenue |
| Marketing Fee | 2% of gross revenue |
| Breakeven Time | Approximately 12 Months |
| Investment Payback | Approximately 24 Months |
Operating Procedure to Securing Customers
How do franchisees get clients?
For those considering a commercial cleaning franchise, understanding client acquisition is paramount. When you invest in a Coverall franchise, you're not starting from scratch. A key benefit is the provision of an initial portfolio of customer accounts, which translates to a guaranteed baseline of monthly revenue from day one. This initial client base is directly correlated with your investment level; a more substantial initial investment means a larger package of guaranteed monthly billings. For instance, a mid-tier investment in 2025, estimated around $30,000, might come with approximately $3,500 in guaranteed monthly customer contracts.
Beyond this initial foundation, franchisees have avenues for growth. You can expand your business by purchasing additional customer accounts through the Support Center. While self-generation of leads is an option, it's important to note that historically, over 85% of new business for franchisees is sourced by the franchisor's dedicated sales team. This highlights the franchisor's role in driving growth, which is a significant aspect of the Coverall franchise model.
What is the customer profile?
The typical customer for this commercial cleaning franchise is a commercial property, with a pronounced focus on facilities where health and sanitation are non-negotiable. As of 2025, the primary target market is heavily weighted towards the healthcare sector, including clinics, surgical centers, and dental offices. These sectors represent a substantial portion of their existing contracts. Other key industries served include professional offices, industrial facilities, educational institutions, and fitness centers.
The emphasis on health-focused cleaning makes this franchise particularly competitive for clients with spaces ranging from 5,000 to 50,000 square feet. These clients typically require more than standard janitorial services and are often willing to invest an additional 10-20% for specialized, health-protocol-driven cleaning solutions. This specialized approach is a core differentiator for the Coverall franchise business.
Tips for Securing and Retaining Clients
- Leverage the Franchisor's Sales Support: Actively participate in lead generation and follow-up efforts provided by the franchisor. Their established sales processes are designed to bring in consistent business.
- Focus on Niche Markets: Given the emphasis on health and sanitation, target businesses within the healthcare and education sectors first, as they are more likely to value specialized cleaning services.
- Deliver Exceptional Service: While the franchisor provides initial accounts, long-term growth and referrals depend on your operational excellence. Consistent, high-quality cleaning builds client loyalty.
For those interested in the specifics of getting started, understanding the process is key. You can find detailed information on How to Start a Coverall Franchise in 7 Steps: Checklist.
| Initial Investment Range | Franchise Fee Range | Royalty Fee | Marketing Fee |
| $17,917 - $62,908 | $15,570 - $40,320 | 5% | 2% |
| Targeted Client Size | Premium for Specialized Cleaning | Franchisor-Sourced New Business |
| 5,000 - 50,000 sq. ft. | 10% - 20% | Over 85% |
Operating Procedure To Managing Finances
How is revenue processed?
Understanding how revenue flows is critical for any business owner, and the Coverall franchise model offers a structured approach. The franchisor centralizes all customer billing and collections. This means the Coverall Support Center handles invoicing customers directly for the cleaning services provided. This process is designed to simplify financial administration for the franchisee. Once a customer's payment is received, the franchisor automatically deducts the ongoing fees. As of 2025, this includes a 5% royalty fee and a 2% marketing fee. These deductions are managed through their proprietary software system. The net revenue remaining after these fees is then deposited directly into the franchisee's business bank account. Typically, this occurs on a monthly basis, providing a predictable cash flow and significantly reducing the administrative burden on the franchisee.
How to maximize profitability?
Maximizing profitability in this commercial cleaning franchise business involves a dual focus on operational excellence and strategic expansion. A key driver of profitability is customer retention. Top-performing franchisees in the Coverall system maintain customer retention rates of around 88% annually. This high retention is built on consistently delivering quality service, adhering to the Health-Based Cleaning System® standards. By keeping clients satisfied, franchisees reduce the need to invest in acquiring new, often more expensive, customer accounts. This is a cornerstone of sustainable growth for any franchise owner.
Furthermore, efficient management of operational expenses plays a vital role. Keeping supply costs below 5% of gross revenue is a benchmark for financial health. Franchisees can also boost their earnings by actively upselling additional services. Special cleaning services, such as carpet cleaning or hard floor maintenance, can increase revenue from a single account by an estimated 15-25%. This strategy leverages existing client relationships to drive higher profitability.
Tips for Maximizing Profitability
- Focus on Customer Satisfaction: Consistently high service quality leads to better retention, reducing acquisition costs.
- Control Supply Costs: Aim to keep supply expenses under 5% of gross revenue through smart purchasing and inventory management.
- Upsell Additional Services: Identify opportunities to offer specialized cleaning services to your existing client base.
- Operational Efficiency: Streamline your cleaning routes and scheduling to maximize the number of clients served per day.
The initial investment for a Coverall franchise can range from $17,917 to $62,908, with the franchise fee itself falling between $15,570 and $40,320. The required cash on hand is also within this range, and a net worth of $100,000 to $500,000 is generally required. For those considering franchise opportunities, understanding these financial requirements is paramount. The average annual revenue per unit is reported around $16,536, with a median of $45,000. Some units report annual revenues as low as $3,000 and as high as $10,000. The system aims for breakeven within 12 months and investment payback within 24 months.
The number of franchised units has seen a decrease from 6,483 in 2021 to 5,654 in 2023. There are no corporate-owned units, indicating a fully franchised system. When evaluating this commercial cleaning franchise, it's also beneficial to explore What Are Some Alternatives to the Coverall Franchise? to ensure it aligns with your investment goals and lifestyle preferences.
| Financial Metric | Amount ($) | Percentage of Revenue (%) |
|---|---|---|
| Average Annual Revenue | 93,459,000 | 100% |
| Cost of Goods Sold (COGS) | 6,347,000 | 6.79% |
| Gross Profit Margin | 87,112,000 | 93.21% |
| Operating Expenses | 78,750,000 | 84.23% |
| EBITDA | 14,709,000 | 15.74% |
| Expense Type | Annual Amount ($) |
|---|---|
| General Liability Insurance | 0 - 1,479.84 |
| On The Job Accident Insurance | 0 - 960 |
| Non-Conviction Janitorial Fidelity Bond | 23.80 - 47.80 |
| Automobile Insurance | 500 - 5,000 |
| Workers' Compensation Insurance | 104 - 5,680 |
| Vehicle Costs | 225 - 2,300 |
| Total Running Expenses | 17,917 - 62,908 |
Operating Procedure To Evaluating Long-Term Growth
Can a franchisee expand their business?
Yes, the commercial cleaning franchise model is built with scalability in mind, allowing franchisees to significantly grow their operations beyond their initial territory. This is a core aspect of maximizing your investment in franchise opportunities.
Expansion typically occurs by acquiring additional customer account packages directly from the franchisor or by developing your own customer base. For instance, in 2025, a notable portion of the system's most successful franchisees manage multiple crews and service a diverse portfolio, generating annual gross revenues exceeding $250,000. This demonstrates a clear pathway for those looking to transition from an owner-operator role to managing a multi-unit business ownership.
The franchisor actively supports this expansion, providing a clear roadmap for franchisees aiming to scale their operations. This structured approach is crucial for long-term growth and building a substantial business.
What is the resale value?
A cleaning franchise business possesses a tangible resale value, primarily dictated by its consistent monthly gross revenue and overall profitability. This makes it an attractive investment for those seeking to build equity over time.
As of 2025, a well-managed franchise can typically be sold for a multiple of its monthly earnings. The stability of its customer contracts and the business's net operating income after all franchise fees are key factors influencing this valuation. For example, the average annual revenue per unit is around $16,536, with a median of $45,000, indicating strong potential for resale value based on consistent performance.
The franchise agreement details the process for selling your business, which requires the franchisor's approval of the prospective buyer. This oversight helps ensure that the equity built by the franchisee is recognized and realized during the transaction.
Tips for Evaluating Long-Term Growth Potential
- Analyze the franchisor's support for multi-unit development: Look for established programs and resources designed to help franchisees expand.
- Assess the revenue potential of additional territories: Research the market demand and average revenue figures for areas beyond your initial territory.
- Understand the resale process and valuation metrics: Familiarize yourself with how the business is valued and the franchisor's role in facilitating sales.
Exploring franchise opportunities requires a thorough understanding of how the business model supports growth. For those interested in learning more about the initial steps, a detailed guide is available on How to Start a Coverall Franchise in 7 Steps: Checklist.
| Average Annual Revenue per Unit | $16,536 - $45,000 |
| Franchisee Expansion Success (2025 Data) | ~20% of franchisees operate multiple crews generating over $250,000 annually |
| Breakeven Timeframe | 12 Months |
| Initial Investment Range | $17,917 - $62,908 |
| Royalty Fee | 5% |
| Marketing Fee | 2% |