Business Category: Cleaning, Franchise, and Service Businesses
Listing Price: $160,000
Cash Flow: $84,685
Why start a business from scratch? Step into this company with 75%+ recurring revenue!
Founded in 2004, the Business is a residential cleaning and maid services franchise. The franchise primarily services clients’ homes & select commercial businesses on a recurring basis throughout the suburbs just north of the Denver area. They also provide one-time deep cleanings and move-in/move-out cleanings. The franchise is well-established and services customers within a territory that includes 25 different zip codes and spans roughly 1,200 square miles with substantial room to grow.
Opportunities For Growth:
(1) Environmentally Friendly Cleaning: The franchise is currently pushing further into the environmentally friendly cleaning space and offering electrostatic disinfection and ionized water. Ionized water, although requiring a significant upfront investment, will eventually pay for itself and provide a strong point of differentiation from competitors. It is also much heathier for the cleaning staff.
(2) Untapped Market: The current owner of the Business has never really exploited the potential of the existing North Denver market and instead preferred to focus on slower steady growth. A motivated operator could easily scale the size of the existing business. There is no reason the Business could not grow much larger.
(3) Commercial Work: Many other franchise locations are focusing their growth on the commercial cleaning space. While most of that work is done after hours and on weekends, this negative is easily offset by the fact that this work can be done very profitably and there is large opportunity for growth in that segment.
(4) Growth of the Area: Denver is a rapidly growing area. According to the Census Bureau, it ranks 11th on the list of cities in the country with the most significant addition of residents, adding nearly 15,000 people between 2011 and 2012. On top of this, the state of Colorado is the second fastest growing state in the US, driven in large part by growth in the Denver metro area.
(1) Low Overhead & Upward Mobility: Unlike many businesses, there is no need for an expensive office. The facility simply requires ample parking and washer dryer connections. Typically, a small commercial office space works well.
In addition, the franchise fee is a percentage of revenue. The percentage decreases as revenue increases, so as business continues to grow, more profits are retained.
(2) Recurring Revenue: The business model of the Company is one that centers on significant repeat business through regularly scheduled cleanings. The Company currently generates approximately 95% of its revenue through residential customers, the majority of which is recurring, with the remainder of revenue coming from commercial cleaning. The Business makes 75% of their revenue through their loyal clientele base.
(3) Turnkey Franchise: The Business has been operating since 2004 with a reputation for quality, consistency, dependability, and reliability. The Company has always prioritized excellent customer service and satisfaction.
(4) Excellent Brand & Supportive Franchise: The franchise’s established and respected brand is a valuable asset. Franchise corporate is always there to assist franchisees. Franchisees benefit from the resources that the Franchise provides, including outstanding sales and operations training, marketing, IT systems, employee hiring and retention support, and more recently, innovative pandemic resources.
Real Estate Available: Leased
Reason For Sale: Retirement.
Number of Employees: 7