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Sears Air Duct Cleaning Franchise ProfileCleaning Franchises > Residential Cleaning |
What is the Initial Investment for a Sears Air Duct Cleaning Franchise?
To open a Sears Air Duct Cleaning franchise, the initial investment ranges from $39,250 to $151,050. This includes a franchise fee that can vary between $18,000 to $54,000. Additionally, potential franchisees should be prepared for a cash requirement of $18,000 to $54,000 and a net worth requirement of $100,000 to $500,000. These financial commitments are essential for securing a franchise and ensuring the necessary resources are available for startup costs.
What Are the Ongoing Fees for Franchisees?
Franchisees of Sears Air Duct Cleaning are subject to ongoing fees that include an 8% royalty fee on gross sales and a 2% marketing fee. These fees contribute to the overall support and resources provided by the franchise, including marketing initiatives and operational guidance. Understanding these costs is crucial for budgeting and financial planning as a franchise owner.
What Are the Revenue Expectations for Franchise Owners?
Franchise owners can expect an average annual revenue of approximately $96,633 per unit, with a median annual revenue of $100,000. However, revenues can vary significantly, with the lowest reported annual revenue being $100,000 and the highest reaching $1,250,000. These figures highlight the potential for profitability within the Sears Air Duct Cleaning franchise, although actual results may depend on various factors including location and operational efficiency.
How Long Does It Take to Break Even?
The breakeven time for a Sears Air Duct Cleaning franchise is estimated at 24 months, with an investment payback period of around 15 months. This timeframe indicates that franchisees can expect to recover their initial investment relatively quickly, assuming they manage their operations effectively and generate sufficient revenue during the early years of operation. Understanding these timelines is important for planning and financial forecasting as a new franchisee.
Sears Air Duct Cleaning 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:
Sears Air Duct Cleaning Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 107 | 110 | 111 |
| Net Change YoY | 3 | 1 | |
| Franchised Units | 102 | 115 | 115 |
| Net Change YoY | 13 | 0 | |
| Corporate Units | 5 | 5 | 4 |
| Net Change YoY | 0 | -1 |
Initial Investment
The Sears Air Duct Cleaning franchise offers a range of initial investment options, with costs varying from $39,250 to $151,050. The initial franchise fee ranges from $18,000 to $54,000, and prospective franchisees should be prepared for additional cash requirements between $18,000 and $54,000 to ensure operational readiness.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $96,633 per unit, with a median figure of $100,000. Revenue can range from a low of $100,000 to as high as $1,250,000, indicating significant growth potential for dedicated operators in various markets.
Financial Obligations
The royalty fee for new units is set at 8%, alongside a marketing fee of 2%. These ongoing fees contribute to the brand's collective marketing efforts and operational support, ensuring franchisees have the tools needed to succeed in a competitive environment.
Breakeven and Payback
Franchisees can anticipate a breakeven period of around 24 months. Additionally, the investment payback period is approximately 15 months, allowing franchisees to recover their initial capital relatively quickly, provided they effectively manage their operations.
Franchise Growth
Since its inception, the Sears Air Duct Cleaning franchise has seen steady growth in franchised units, rising from 102 units in 2015 to 115 in both 2016 and 2017. This growth reflects the brand's increasing market presence and the demand for air duct cleaning services across various regions.
Corporate Structure
The franchise operates under a structured corporate framework, with a mix of franchised and corporate-owned units. As of 2017, there were 115 franchised units and 4 corporate units, demonstrating a balanced approach to expansion while maintaining brand integrity and support for franchisees.
Frequently Asked Questions
The initial investment for a Sears Air Duct Cleaning franchise ranges from $39,250 to $151,050, which includes the franchise fee and other startup costs.