Finances are a significant part of being a franchise owner, from the initial investment to your income potential. As a prospective franchisee with The Cleaning Authority, make sure you’ve done your due diligence and considered some of the fiscal aspects of ownership. Reviewing your own financial situation is critical in preparation for becoming a business owner, and our team wants to help!
Here are four financial questions you should ask yourself before you agree to become a franchisee.
1. How Much Do I Have to Invest?
When many people think about franchise ownership, the first question they ask themselves is, “how much money can I make?” However, one of the first things you need to find out is if you have the funds to own a franchise.
The initial investment with The Cleaning Authority is low, depending on the ownership track you accept. In addition, we have two investment market options—Hometown Market and Enterprise Market—that give you the freedom to choose and be in control of your financial future.
2. What Kind of Return on Investment (ROI) Can I Expect?
It’s safe to say that the most asked question is, “what’s my expected return of investment?” Of course, the answer depends on your commitment to the business and meeting sales goals. As a $46 billion industry, we think there’s a pretty good chance you’ll have a positive ROI. In fact, our franchise owners average around $1.9 million in topline revenue or total sales.
3. Where Can I Get My Investment Funds?
Your initial franchise investment can come from various places, including:
- Small Business Administration-backed loan – A Small Business Administration (SBA) loan is probably one of the more recognized and popular forms of franchise funding. Why? The SBA will likely be familiar with the franchise brand you’re joining and consider that along with your fiscal background.
- Franchisor financing – Often, a franchise brand has a preferred lender they regularly use to help franchisees fund their business. This funding option can sometimes mean a faster track to loan approval and more desirable rates.
- Personal loan – A personal loan may be a last resort if other financial avenues have failed. This option should only be utilized if you have good financial credit and history. The risk is higher here because defaulting on the loan could affect your credit standing and make it more difficult to borrow in the future.
- Friends and family funding – When friends and family find out about your dream of business ownership, they may offer to assist. Monetary gifts from loved ones are great ways to keep from opening new loans or lines of credit that directly affect your credit score. Plus, there’s no mounting interest or the requirement to pay back gifts.
If you’re going the loan route, make sure to work with a financial advisor or loan officer so they can provide you with various options. When you work with a professional and explain your situation, they’ll be able to help you with the loan application process to give you a better chance at franchise ownership.
Franchisees with The Cleaning Authority have access to a team that can advise you on investment options for your business. Also, consider connecting with a current franchise owner to learn the ins and outs of the company and get personal anecdotes. That is the perfect opportunity to discover how like-minded entrepreneurs were able to fund their dreams.
4. Can I Risk Any Losses?
Only you can answer this question, but, let’s be honest, opening a business is a risky move in general. However, partnering with a franchise gives you a better chance of success—most of the time. A franchise with The Cleaning Authority is a low-risk investment, as our industry is virtually recession-proof, and there’s always a demand for cleaning services for affluent and commercial customers.
If you’re ready to open a cleaning franchise and build a legacy, contact our team at (888) 706-3615 or contact us online.