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PuroClean Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for a PuroClean Franchise?
To launch a PuroClean franchise, the initial investment ranges from $59,000 to $245,920. This includes a franchise fee of $59,000, along with additional startup costs that may vary based on location and operational needs. Potential franchisees should also be prepared for a cash requirement of $95,530 to $124,420 to cover initial expenses and ensure smooth operations in the early stages.
What Are the Ongoing Fees for PuroClean Franchisees?
PuroClean franchisees are subject to a royalty fee of 10% of their gross revenue, along with a marketing fee of 2%. These ongoing fees contribute to the brand's national marketing efforts and support services, helping franchisees maintain competitive visibility in their local markets. Understanding these costs is crucial for financial planning and profitability.
What Are the Financial Performance Metrics for PuroClean?
The average annual revenue per PuroClean unit is approximately $1,077,492, with a median revenue of $590,653. This indicates a strong potential for profitability within the franchise system. Franchisees can expect a breakeven time of about 12 months and an investment payback period of roughly 24 months, making it a potentially lucrative investment for those who follow the operational guidelines effectively.
How Many PuroClean Units Are Currently Operating?
As of 2023, PuroClean has expanded its reach to 350 franchised units, up from 311 in 2022 and 277 in 2021. This growth reflects the brand's increasing popularity and demand for its services in the restoration and cleaning industry. With no corporate-owned units, PuroClean relies entirely on its franchise network, emphasizing the importance of franchisee success in the overall brand strategy.
PuroClean 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:
PuroClean Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 277 | 311 | 350 |
| Net Change YoY | 34 | 39 | |
| Franchised Units | 277 | 311 | 350 |
| Net Change YoY | 34 | 39 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Franchise Overview
PuroClean is a leading franchise in the property restoration industry, specializing in water, fire, mold, and biohazard cleanup services. Established to address urgent needs in disaster recovery, PuroClean has built a strong reputation for quick response and reliable service. With a focus on customer satisfaction and effective restoration solutions, the franchise has grown significantly, highlighting its commitment to excellence in the restoration field.
Investment Requirements
Starting a PuroClean franchise requires an initial investment ranging from $59,000 to $245,920. The franchise fee is set at $59,000, with ongoing royalty fees of 10% of gross sales and a marketing fee of 2%. Prospective franchisees should have liquid cash available between $95,530 and $124,420, alongside a net worth of $500,000 to $1,000,000 to ensure adequate financial backing for the business.
Financial Performance
PuroClean franchises demonstrate impressive financial potential, with an average annual revenue per unit of $1,077,492. The median annual revenue stands at $590,653, while some units report revenues as low as $200,000 and as high as $21,692,164. This range indicates the varying levels of success franchisees can achieve based on market conditions and operational efficiency.
Growth Trajectory
The PuroClean franchise network has experienced consistent growth, with the number of franchised units increasing from 277 in 2021 to 350 in 2023. This upward trend reflects the brand's expanding market presence and the growing demand for restoration services. The franchise's focus on training and support has empowered franchisees to thrive in their local markets.
Operational Support
PuroClean provides comprehensive support to its franchisees, including training programs, marketing resources, and ongoing operational assistance. Franchisees benefit from a robust support system designed to help them navigate the challenges of running a restoration business. This commitment to franchisee success is a key component of PuroClean’s business model.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation, with an investment payback period of about 24 months. This relatively quick return on investment is attractive to potential franchisees, showcasing the financial viability of the PuroClean business model and the effectiveness of its operational strategies.
Frequently Asked Questions
The initial investment to open a PuroClean franchise ranges from $59,000 to $245,920, depending on various factors such as location and setup costs.