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360clean Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for a 360clean Franchise?
To open a 360clean franchise, the initial investment ranges from $35,800 to $46,500. This includes a franchise fee of $15,000. Potential franchisees should also be prepared for ongoing costs, such as a royalty fee of 14% and a marketing fee of 1%. Additionally, a cash requirement of $35,800 to $46,500 is necessary, along with a net worth requirement of $100,000 to $200,000 to ensure financial stability for operating the business.
What Are the Revenue Expectations for a 360clean Franchise?
Franchisees can expect an average annual revenue of $216,747, with a median revenue of $146,039. The revenue can vary significantly, with the lowest reported at $24,999 and the highest at $938,127. This wide range highlights the potential for profitability, but it also indicates that individual results may depend on various factors, including location, market demand, and operational efficiency.
What Is the Breakeven and Payback Period for a 360clean Franchise?
Franchisees can anticipate a breakeven time of approximately 12 months, which means they could start seeing profit within the first year of operation. Similarly, the investment payback period is also around 12 months. This relatively quick return on investment is an attractive feature for potential franchisees looking to establish a profitable business swiftly.
How Many Units Does 360clean Currently Operate?
As of the latest data, 360clean operates solely through franchised units with a total of 67 locations in 2022. The number of franchised units has seen a decline from 80 in 2020 to 77 in 2021, and then to 67 in 2022. This trend may indicate the need for prospective franchisees to carefully evaluate market conditions and operational support when considering joining the 360clean franchise system.
360clean Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
360clean Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 80 | 77 | 67 |
| Net Change YoY | -3 | -10 | |
| Franchised Units | 80 | 77 | 67 |
| Net Change YoY | -3 | -10 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Investment Overview
The 360clean franchise offers a relatively low initial investment range of $35,800 to $46,500, making it accessible for aspiring entrepreneurs. The franchise fee is set at $15,000, with ongoing royalty fees of 14% and a marketing fee of 1%. This structure allows franchisees to start their journey with a manageable financial commitment while benefiting from a recognized brand.
Revenue Potential
Franchisees can expect an average annual revenue of $216,747, with a median revenue of $146,039. The revenue range is quite broad, with the lowest annual revenue reported at $24,999 and the highest at $938,127. This variability indicates the potential for significant earnings, depending on the franchisee's operational effectiveness and market conditions.
Breakeven and Payback
The breakeven time for a 360clean franchise is approximately 12 months, signaling a quick return on investment. This timeframe is appealing for new franchisees, as it suggests that they can start recouping their initial investment within the first year of operations. The investment payback period aligns with this, reinforcing the financial viability of the franchise opportunity.
Franchise Growth
360clean has experienced a gradual decline in the number of franchised units, from 80 in 2020 to 67 in 2022. This trend may prompt potential franchisees to assess the brand's stability and market presence. Understanding the reasons behind this decline can help prospective owners make informed decisions regarding their investment.
Financial Performance
According to the average profit and loss data, the cost of goods sold (COGS) accounts for 90.5% of revenue, leaving a gross profit margin of 9.5%. Operating expenses are significant at 63.5% of revenue, highlighting the need for efficient management to improve profitability. Franchisees should focus on cost control and operational efficiencies to enhance their bottom line.
Corporate Structure
360clean operates as a franchise model with no corporate-owned units reported in the last three years. This structure emphasizes the franchisor's focus on supporting franchisees rather than competing with them. As a franchisee, this can foster a collaborative environment where the franchisor is dedicated to the success of its franchise partners.
Frequently Asked Questions
The initial investment for a 360clean franchise ranges from $35,800 to $46,500, which includes a franchise fee of $15,000.