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Franchising can be an excellent way to grow a cleaning business. Successful businesses within the commercial and domestic cleaning industries demand significant human resources and staff effort. For this reason, scaling a cleaning business can bring a considerable increase in managerial effort. Under the franchising model, franchisors allow entrepreneurs to run businesses replicating their own. In exchange, they receive an initial fee from franchisees and a steady flow of royalties for the duration of their franchise agreements. This article will explain how you can turn your cleaning business into a growing franchise.
Franchising Cleaning Services
Cleaning business owners often find they have good scalability prospects. However, a significant constraint with a growing business is that growth often leads to increasing administrative and managerial work.
If you have experience in the cleaning industry, you will know that sufficient staffing is vital for efficient operations. You need the right amount of people in place at the right time. Franchising offers a great way for cleaning services to scale their brands without the business’s administrative burden spiralling out of control. This is due to the nature of franchising.
Franchising involves a business owner allowing others to operate franchise businesses under their brand. The initial business owner becomes a franchisor. They then allow franchisees to run the franchises. Franchisors give franchisees the right to run a business that uses the franchised brand’s name, trade marks, and business model. Franchisees will implement the franchisor’s systems and processes and usually offer the same range of services.
This handbook covers all the essential topics you need to know about franchising your business.
How to Franchise a Cleaning Business
1. Consider Whether Your Business is Franchisable
Franchising will only be a suitable approach for some cleaning businesses. To decide whether franchising is right for you, consider whether it has the following:
- a replicable business model;
- a history of success; and
- broader consumer demand.
A replicable business model means that other people can run businesses that mirror the systems and practices of your own. Some business models are too complex for franchising. So, think about whether you could explain your business model to somebody else and train them to run their business like yours. Also, franchisees will only want to buy the right to run a business that will be successful. Accordingly, potential franchisees will seek evidence that your business has fared well profit-wise.
2. Draft a Franchise Agreement
A franchise agreement is necessary to franchise any business. This vital contract franchisees and franchisors share determines the shape of their relationship and how it will operate. The franchise agreement includes:
- both parties’ roles and responsibilities;
- details of training and support provisions;
- the duration of the agreement; and
- renewal and termination clauses.
At this stage, seeking professional legal advice is a great idea. An experienced lawyer can draft a robust franchise agreement for you and help you with the complex legal tasks involved with turning your business into a successful franchise.
3. Prepare a Training Package
Your training package will prepare a franchisee to run a unit of business that replicates your own. Successful franchisee training includes:
- a franchise operations manual, which is a detailed guide that tells franchisees everything they need to know about the business);
- training in the franchised brand’s policies, values, systems and processes; and
- classroom-based and practical training delivery methods.
You can also provide ongoing training as part of your franchisee support offering.
4. Recruit Franchisees
The final step is to find prospective franchisees. Before advertising franchise opportunities, consider what type of people you want to bring into your brand. This may include enquiring into their attributes and experience levels. Enter this process with those desired qualities in mind.
You may advertise available opportunities through various methods, including:
- online franchise opportunity directories;
- industry events; or
- through word of mouth.
Once you attract potential candidates, invite them to interview and ensure they meet your specifications. Conduct background checks and ensure they are suitable before allowing them to sign the franchise agreement. Once a franchisee signs, prepare to onboard and train them.
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Key Takeaways
Franchising can be a great way to grow a cleaning services brand. This article has explained the steps you need to take to franchise a cleaning business. These include the following:
- think about whether franchising is a suitable option for growing your business;
- draft a franchise agreement (and seek professional legal advice);
- prepare a training package; and
- recruit franchisees.
If you need legal assistance with franchising a cleaning business, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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