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Sears Carpet and Upholstery Care Franchise ProfileCleaning Franchises > Carpet Cleaning |
Initial Investment Overview for Sears Carpet and Upholstery Care Franchise
The initial investment required to open a Sears Carpet and Upholstery Care franchise ranges from $38,950 to $149,900. This includes a franchise fee that can vary between $18,000 and $54,000. Potential franchisees should also be aware of ongoing costs, including an 8% royalty fee and a 2% marketing fee. It's essential to have cash readily available within the specified range to ensure a smooth start to your franchise journey.
Financial Performance Expectations
Franchisees can expect an average annual revenue of approximately $96,614 per unit, with a median revenue of $150,000. The revenue potential varies significantly, with the highest reported annual revenue reaching $7,396,656. Understanding these figures can help prospective franchisees gauge the potential profitability of their investment and make informed financial decisions.
Breakeven and Payback Period
The breakeven time for a Sears Carpet and Upholstery Care franchise is estimated at 12 months, providing a relatively quick path to profitability. Franchisees can expect to pay back their initial investment within 24 months, making this opportunity attractive for those looking for a solid return on investment in a reasonable timeframe.
Franchise Growth and Stability
Since 2015, Sears Carpet and Upholstery Care has maintained a stable presence in the market, with a peak of 139 franchised units in 2015, gradually decreasing to 119 by 2017. This trend suggests a need for careful market analysis and strategic planning for prospective franchisees to understand the competitive landscape and growth potential in their desired territories.
Sears Carpet and Upholstery Care 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 Carpet and Upholstery Care 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 | 144 | 139 | 123 |
| Net Change YoY | -5 | -16 | |
| Franchised Units | 139 | 134 | 119 |
| Net Change YoY | -5 | -15 | |
| Corporate Units | 5 | 5 | 4 |
| Net Change YoY | 0 | -1 |
Franchise Overview
Sears Carpet and Upholstery Care offers a unique franchise opportunity in the cleaning services industry. With a focus on residential and commercial carpet and upholstery cleaning, the franchise combines quality service with a recognized brand name. Franchisees benefit from a proven business model, comprehensive training, and ongoing support, positioning them for success in a growing market that values cleanliness and hygiene.
Investment Requirements
The initial investment for a Sears Carpet and Upholstery Care franchise ranges from $38,950 to $149,900. This includes an initial franchise fee between $18,000 and $54,000. Potential franchisees should also be prepared to meet a cash requirement of $38,950 to $149,900 and a net worth requirement of $250,000 to $500,000, ensuring they have the financial resources to launch and sustain their business.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $96,614 per unit, with some units generating as much as $7,396,656. The median annual revenue stands at $150,000, indicating a strong potential for profitability. With proper management and marketing, franchisees can optimize their earnings and achieve financial success in this competitive sector.
Royalty and Marketing Fees
Franchisees are required to pay an 8% royalty fee on gross sales, along with a 2% marketing fee. These fees contribute to the ongoing support and brand recognition provided by Sears, helping franchisees to effectively reach their target markets and drive sales. The structured fee system allows for a sustainable business model that benefits both the franchisee and the franchisor.
Operational Insights
With a breakeven time of about 12 months and an investment payback period of 24 months, franchisees can expect a relatively quick return on their investment. The operational framework is designed to streamline processes and maximize efficiency, enabling franchisees to focus on delivering exceptional service while managing costs effectively.
Franchise Growth
As of recent years, the Sears Carpet and Upholstery Care franchise has seen a steady number of franchised units, with 139 units in 2015, decreasing slightly to 119 by 2017. This trend highlights the importance of strategic market entry and ongoing support for franchisees to navigate challenges and capitalize on growth opportunities in the cleaning services sector.
Frequently Asked Questions
The initial investment for a Sears Carpet and Upholstery Care franchise ranges from $38,950 to $149,900, which includes the franchise fee and other startup costs.