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National Maintenance Contractors Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for a National Maintenance Contractors Franchise?
To open a National Maintenance Contractors franchise, the initial investment ranges from $16,350 to $34,250. This includes a franchise fee of $5,000, which is part of your startup costs. Additionally, you should prepare for ongoing fees, including a 6% royalty fee and a 6% marketing fee. With a cash requirement between $16,350 and $34,250, it’s essential to assess your financial readiness before proceeding.
What are the Financial Expectations for Franchisees?
Franchisees can expect an average annual revenue of approximately $54,000, with a median revenue of around $48,000 per unit. While the lowest reported annual revenue is $4,000, some units have achieved as high as $1,000,000. The breakeven period is estimated at 12 months, and the investment payback time is around 36 months, making it crucial to have a solid financial plan in place.
What are the Running Expenses for a National Maintenance Contractors Franchise?
Running expenses for a National Maintenance Contractors franchise can vary significantly. Key expenses include general liability and worker’s compensation insurance, which costs between $1,000 and $1,500 annually. Vehicle expenses range from $500 to $8,500, while communication and technology costs are between $100 and $750. Additionally, it’s advisable to set aside $6,500 to $13,500 as additional funds for operational stability. Overall, total running expenses can range from $8,100 to $24,250 per year.
How Many Franchise Units Are Currently Operating?
As of 2016, the National Maintenance Contractors franchise has maintained a steady growth in franchised units, with 252 units in 2014, 258 in 2015, and 253 in 2016. Notably, there are no corporate-owned units, indicating a focus on franchisee-operated locations. This trend reflects the brand's commitment to expanding its franchise network while providing support to individual franchise owners.
National Maintenance Contractors 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:
National Maintenance Contractors Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2014 | 2015 | 2016 |
|---|---|---|---|
| Total Units | 252 | 258 | 253 |
| Net Change YoY | 6 | -5 | |
| Franchised Units | 252 | 258 | 253 |
| Net Change YoY | 6 | -5 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The National Maintenance Contractors franchise offers an accessible entry point for aspiring entrepreneurs with a low initial investment ranging from $16,350 to $34,250. The franchise fee is set at $5,000, with ongoing royalty and marketing fees of 6% each. This financial structure provides a solid foundation for franchisees looking to establish a profitable maintenance business while keeping costs manageable.
Revenue Potential
Franchisees can expect an average annual revenue of $54,000 per unit, with a median of $48,000. However, revenue can vary significantly, with some units generating as little as $4,000 and others reaching up to $1,000,000. This range highlights the potential for growth and profitability in the maintenance sector, depending on location and operational efficiency.
Breakeven and Payback Period
The National Maintenance Contractors franchise typically sees a breakeven time of 12 months, allowing franchisees to recover their initial investment relatively quickly. The investment payback period is estimated at 36 months, making it an attractive option for those seeking a viable return on investment in a competitive market.
Franchise Growth
Since its inception, the National Maintenance Contractors franchise has shown steady growth, with 252 franchised units in 2014, increasing to 258 in 2015, and stabilizing at 253 in 2016. This consistent growth indicates a strong demand for maintenance services and a solid franchise model that supports expansion.
Operational Expenses
Franchisees should be aware of annual running expenses that can range from $8,100 to $24,250. Key expenses include general liability and worker’s comp insurance, vehicle expenses, communication and technology costs, and additional funds for operational stability. Understanding these costs is crucial for effective financial planning and management.
Financial Requirements
To qualify for a National Maintenance Contractors franchise, potential franchisees must demonstrate a net worth of $100,000 to $500,000. Additionally, a cash requirement of $16,350 to $34,250 is necessary to cover initial investments. These financial prerequisites ensure that franchisees are adequately prepared for the challenges of business ownership.
Frequently Asked Questions
The initial investment for a National Maintenance Contractors franchise ranges from $16,350 to $34,250, which includes a franchise fee of $5,000.