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Start a Cleaning Business

Financing a Franchise Cleaning Business

August 18, 2023 by Evan-Scott Morris

It takes hard work and dedication to succeed as a business owner in any industry, and any experienced entrepreneur will tell you that choosing the right field can make all the difference. The good news is the commercial cleaning franchising industry has shown stability and promising opportunities for aspiring entrepreneurs and is one of the best low-cost franchises out there.

Whether you’ve been thinking about opening your own cleaning company for a while or are just beginning to weigh the pros and cons, questions like “where do I start?” and “how will I pay for this?” might be crossing your mind. That’s where franchise financing comes in.

From assessing start-up costs to evaluating creditworthiness and everything in between, the guide below will help you confidently navigate the financing process and be on your way to laying the foundation for a thriving cleaning company.

What is Franchising?

You’ve likely heard the word “franchise” or “franchising” said in everyday language, but what exactly does it mean?

Franchising is a business model in which a company (the franchisor) licenses its brand, products, and services to a third party (the franchisee) in exchange for an initial fee and ongoing royalties. The franchisee operates a business under the franchisor’s brand and receives support, training, and marketing assistance from the franchisor.

If the terminology listed above sounds like a foreign language, not to worry. Here is some basic franchising terminology broken down:

Franchise Fee: Franchisees typically have to pay an upfront franchise fee to the franchisor to acquire the right to use the business model and brand. The franchise fee can vary widely depending on the industry, the brand’s strength, and the size of the territory.

Royalties: Franchisees are required to pay ongoing royalties to the franchisor as a percentage of their gross sales. Royalties usually cover services such as ongoing training and support, marketing and advertising assistance, operational support, and product procurement.

Franchise Agreement: The franchise agreement is a legal contract between the franchisor and the franchisee that outlines the terms and conditions of the franchise arrangement, including the franchise fee, royalties, operational requirements, and other obligations.

Marketing and Advertising: Franchisees usually contribute a certain percentage of their sales to an advertising and marketing fund administered by the franchisor. This fund is used to develop regional or national advertising and marketing campaigns to promote the brand. Franchisees are also often asked to participate in local marketing campaigns.

With a franchise, a person can reap the benefits of business ownership without starting from scratch. This is especially attractive to aspiring entrepreneurs, however it’s important to take it upon oneself to do their own due diligence, like carefully reviewing the franchise agreement, understanding the fees and obligations, and thoroughly researching the franchisor and the market to assess the viability of the opportunity. The business landscape is ever changing and unpredictable challenges always arise.

Take the U.S. Small Business Administration’s (SBA) announcement, for example. Earlier this year the SBA declared that it would end its franchise directory. The SBA Directory was created as a way for lenders to check whether a franchise was eligible for SBA financing. Without it, SBA lenders will need to do more work to assess whether a franchise qualifies for agency loans. And entrepreneurs will have to do extra digging, too, as they weigh an investment.

Financing a Franchise

Once you’ve determined that franchising is the right business model for you it’s time to consider how you’ll pay for it. Perhaps you have the funds available (and good for you if that’s the case!), but if you’re like the majority of Americans you will need to examine alternative routes. There are several reasons why financing can be beneficial, such as:

Start-Up Costs: Financing can help cover the initial start-up costs of a cleaning business, such as purchasing cleaning equipment, supplies, and hiring staff. By securing funding, you can get your business up and running more quickly and efficiently.

Expansion and Growth: Financing can provide the necessary capital to expand your franchised cleaning business or offer additional services. This can help you reach new customers, increase revenues, and achieve business growth.

Equipment Costs: Cleaning businesses often rely on specialized equipment for efficient and effective service delivery. Financing can help you upgrade or replace equipment, ensuring that you have the latest tools and technology to meet client demands

Financing a cleaning business can feel like a daunting task, especially when you’re first starting out in business. If you’re not sure where to start, here are some factors all lenders may consider when discussing potential partnership opportunities:

Personal Credit: Your personal credit is a vital factor in securing financing for a franchise. Lenders review your personal credit history to determine your creditworthiness. Ensure your credit score is in good standing before seeking financing. If your credit score needs improvement, take steps to improve it, such as paying off loans or credit card balances.

Collateral: Collateral is an asset that a lender can seize in the event that you default on your loan or are unable to fulfill the repayment terms. Having collateral, such as property, equipment, or inventory, can increase your chances of securing financing. A lack of collateral, however, might limit your financing options or increase interest rates.

Loan Types: Several financing options are available for cleaning businesses, including traditional bank loans, Small Business Administration (SBA) loans, and alternative financing options. Each loan type has its unique eligibility criteria, repayment terms, and interest rates. Research each loan option and evaluate which one is the best fit for your business needs.

SBA vs. Traditional Bank Loans: To expand on the point above, SBA loans and traditional bank loans are most commonly used amongst small businesses. SBA loans are partially guaranteed by the government, making them less risky for lenders, and they offer higher amounts, lower interest rates, and longer repayment terms compared to traditional bank loans. However, SBA loans are somewhat more difficult to qualify for as compared to traditional bank loans. Traditional bank loans have more stringent requirements and shorter repayment terms, but they can be a practical option for established businesses with collateral sufficient to support the loan.

Industry Experience: Since cleaning franchises typically provide new franchisees with initial training, prior cleaning experience isn’t a requirement per se. Your industry experience, however, can certainly influence your ability to secure financing. Lenders may consider your experience, skills, and qualifications when evaluating your application.

In-House vs. Third-Party Financing: In-house financing and third-party financing are two types of financing options available to individuals interested in securing a loan.
In-house financing, also known as seller financing, is when a retailer extends a customer a loan for the purchase of its goods or services. Here, the seller acts as both the seller of the product or service and the lender of the funds for the purchase, providing loans directly to customers.

On the other hand, third-party financing involves obtaining financing from a separate lending institution such as a bank, credit union, or other financial institution. In this type of financing, the seller does not provide the financing directly but instead guides the customer to a third-party lender who will provide the funds, who ultimately determines the approval process and terms of the loan.

Franchising with Corvus Janitorial Systems

For over twenty years, Corvus has proudly helped thousands of men and women turn their entrepreneurial aspirations into thriving businesses with low-cost franchise financing options. If you are interested in learning more, we’ve got you covered. Contact your local Corvus office today to schedule a meeting with an experienced professional who can help guide you in the right direction.

Filed Under: Franchise Ownership, Guides, Start a Cleaning Business, Tips & Trends

8 Tips for Sourcing Commercial Cleaning Products and Supplies

May 19, 2023 by Evan-Scott Morris

As the owner of a commercial cleaning franchise, sourcing the right products and supplies is an essential part of the job. Taking the time to carefully research and select the right ones can help ensure your business is clean, safe, and welcoming for customers and employees alike. But where to start, you might ask? Read on for five Corvus-approved tips to help you make the best choices for your business:

1. Identify Your Cleaning Needs

Before you begin shopping, take the time to identify the types of cleaning products and supplies your commercial accounts will need. Consider the surfaces you need to clean, the types of areas you need to disinfect, the frequency of cleaning, and any specific requirements or regulations you need to follow. Determining the needs of your commercial space(s) first will help you identify the appropriate cleaning supplies and products.

2. Research Suppliers

Look for established, reputable suppliers that specialize in commercial cleaning products and offer a wide variety of cleaning products and supplies. Look for suppliers who can provide consistent and timely delivery of products. If you don’t know where to start, try checking online reviews or asking for recommendations from other franchise owners in your area.

3. Compare Prices

Once you’ve identified a few potential suppliers, it’s wise to compare pricing to ensure you’re getting a fair deal. Overpaying should of course be avoided, but keep in mind that the cheapest option may not always be the best quality; consider the effectiveness and longevity of the products to make an informed decision.

4. Try Before You Buy

It’s possible that the manufacturer you’re purchasing from will let you test the products before making a purchase. Definitely take advantage of this option if it’s available, especially when purchasing in bulk. This will help you determine if the product is effective and worth the investment.

5. Look for Eco-Friendly Options

Consider choosing eco-friendly cleaning products and supplies. Not only is this better for the planet, it can also be a selling point for your business. More and more companies are making an effort to be environmentally conscious, so using these sorts of products can be a real differentiator when bidding accounts.

6. Consider Buying in Bulk

Although it’s a higher cost upfront, buying your cleaning products in bulk will save you a significant amount of money in the long run. This is especially true if you have a large business or find yourself frequently needing to restock supplies.

7. Keep Track of Inventory

After selecting the right products and supplies for your cleaning franchise, maintaining a list of your cleaning products and supplies is a great way to stay organized. Closely monitoring the amount of products in stock will help you avoid the possibility of arriving at a customer’s facility empty handed.

8. Support local businesses

Consider purchasing cleaning products and supplies from local businesses or manufacturers. Not only does this support your local economy, but it can also provide an opportunity to discover unique, high-quality products that may not be available through larger retailers.

Conclusion

Overall, researching and selecting the right commercial cleaning products and supplies is crucial to maintaining a successful business. If you need more advice on sourcing items for your specific cleaning needs, Corvus has you covered. Contact your local Corvus office today to schedule a meeting with an experienced professional who can help guide you in the right direction.

Filed Under: Articles, Commercial Cleaning, Franchise Ownership, Start a Cleaning Business, Tips & Trends

The Benefits of Owning a Cleaning Franchise

May 5, 2023 by Evan Morris

For many people, owning a business has always been a dream. The advantages of being your own boss are extremely attractive. This career path brings security, personal and professional fulfillment, and separates you from the burdens of the traditional workforce. In many ways, being your own boss embodies what our country stands for at its core: the independent pursuit of dreams, goals, and objectives. At Corvus Janitorial Systems, these values are at the base of everything we do. That’s why more people than ever before are turning to us to open their own cleaning franchise.

They’re reaching out to learn about becoming a business owner within our office cleaning franchise system, and we’re happy to help. If this year has taught us anything, it’s that life is unpredictable. Our friends, neighbors, and acquaintances are seizing the day in major ways. They’re taking control of their lives and their futures because they understand what can come of making such bold moves. Why wait another day to do what you’ve always wanted to do? If this applies to you, too, read on to learn more about the benefits of running a cleaning franchise:

You get to skip the painful and time-consuming tasks most startups face

Some prospective Franchisees might already understand some of the benefits of joining a franchised network. But there are some that you might not have thought about, too. First, becoming a franchisee saves you a lot of time and frustration. You gain immediate access to the assets and processes that your franchisor has already developed. They’ve had the time and operating experience to optimize their business. It’s time for you to join the team. When you operate under a franchisor, you have access to benefits you won’t find elsewhere.

You’ll have automatic name recognition

The brand of a franchisor has already been established over many years. Brands take months, years, and even decades to build. But you won’t have to worry about that here. The public already knows what products and services you have to offer, and they’re likely excited about them, too. You’re adding your unique experiences and skills to the brand’s name, values, and recognition. This tells your customers that the brand trusts you to match the quality they provide. Additionally, most franchisors will be available to help with the startup tasks that you can’t skip over, like marketing support, collective purchasing agreements, or access to terrific services. Both the franchisor and the tools they provide can be invaluable in your be-your-own-boss journey.

Your franchise will operate under an established national reputation

For years now, Corvus Janitorial Systems has been a nationally recognized and preferred brand. Franchisees across the country achieve greater access to sales prospects because of this. As a Franchisee, you’ll also have access to Corvus’ dedicated sales department. Our experts in sales actively pursue and secure office cleaning customers that Franchisees may subsequently service. Our active, outbound sales process helps our Franchisees secure customers and grow their businesses. We’ll also eliminate a major hurdle that most traditional business owners face: obtaining financing. We’ve developed a system that allows Franchisees to access capital through financing both for startup and ongoing growth. Because we’re with you every step of the way.

From sales and marketing to financing and name recognition, Corvus Janitorial offers unparalleled service to its franchise owners. The need for quality office cleaning services is absolutely critical. This is true now more than ever before. Our services address the aesthetics of a workplace, but first and foremost, they ensure a safe and healthy workspace. The stability, support, and flexibility you find in a franchise make for an exciting opportunity. The services we provide are in high demand now, and the need is only growing. Corvus is opening the doors, all you have to do is walk on through.

This piece is meant simply to inform, not to provide any legal or medical advice.

About Corvus Janitorial Systems

Founded in 2004 to make people’s lives better, Corvus is a full-service commercial cleaning franchisor that offers cleaning services through reputable local Franchisees. Corvus has been guided by its mission to transform people and transform places by consistently delivering independence, security, and freedom to Franchisees who deliver high-quality cleaning to offices, educational buildings, medical buildings/offices, recreational centers, industrial parks, and other spaces. The company has 22 regional support offices across the United States with more than 1,000 Franchisees. For more information regarding Corvus, visit corvusjanitorial.com or corvusjanitorial.com/franchise/ for franchise information.

Filed Under: Articles, Franchise Ownership, Start a Cleaning Business, Tips & Trends

Starting a Cleaning Business: Residential vs Commercial Services

April 17, 2023 by Evan-Scott Morris

When it comes to the world of cleaning, there are two major types of professional services: commercial and residential. Though both can be profitable, there are several benefits to owning and operating a commercial cleaning business.

High Demand for Commercial Cleaning Services

Commercial cleaning services cover a number of different industries from schools and colleges to medical facilities, offices, and warehouses. Having this range of opportunities means you’ll never run out of potential clients. Commercial janitorial services will always be in demand, even during a world-wide pandemic! During the last few years, the need for professional cleaning and disinfection grew, rather than shrank, showing that commercial cleaning needs are not going away any time soon. This means stability and profitability to a commercial cleaning business owner and their employees.

Commercial cleaning, when it really comes down to it, is a necessity. Residential cleaning is often seen as a luxury. If things change within the economy – when we see things like the high inflation rates happening today – luxury items are usually the first thing to be cut. People will clean their own homes or task their children with that chore. Commercial facilities usually must hire outside businesses to clean, and when they do, our Franchisees are the ones ready and waiting to provide that service.

Commercial Cleaning: Selective Clientele and Scheduling Flexibility

Servicing a wide range of industries also means that you can be a little more selective when choosing your clients. If you don’t like working in schools or medical facilities, no one is going to make you clean them. You get to decide what accounts you take on and which ones you leave for others. As a franchise owner, you are the boss and can make those decisions for yourself and for your employees. Having such a variety of potential customers is an advantage of the commercial cleaning industry.

Another benefit of a commercial cleaning business is that, typically, cleaning is done during the evening or night, allowing for more scheduling flexibility. Franchise owners can hold a day job and run a successful money-making janitorial business during the evenings. You can decide when and where you are working, meaning this job is more agreeable to some people over a 9-5 gig.

When working in someone’s home, the client can be much more demanding and pickier, watching your every move. You are, after all, in their personal space. When working commercially, cleaning crews are usually scheduled at night when the workspace is empty.

Though a great cleaning job is expected by commercial clients, being in a working environment rather than a personal one can mean there isn’t an emotional attachment to the space and provides the cleaner with more wiggle-room in the way the space is cleaned. This arrangement can be very beneficial for families when someone needs to be home during the day to care for children or other family members. A commercial janitorial company can be a great way to maintain a two-income residence without having to spend money on day care or in-home health care.

Starting a Cleaning Business: Lower Financial Risk and Brand Recognition through Franchising

Opening a commercial cleaning franchise is also a smart financial investment. With relatively low start-up costs and financing options available through Franchisors, like Corvus Janitorial Systems, a person can start their own business and start making money with relatively low capital. Owning a business doesn’t necessarily mean having to start from scratch. Buying a franchise allows ambitious individuals to benefit from the success of an established brand. It’s often an easier, less intimidating solution than the traditional route, especially when becoming part of a company that offers high-demand solutions like janitorial services.

A Commercial Cleaning Franchise Gives You Additional Training & Skills Development

Purchasing a franchise can be more affordable than building a cleaning business from the ground up. You also get to take advantage of the marketing and administrative services included with franchise ownership. Don’t know how to run an email campaign or generate invoices? Let Corvus Janitorial do that for you, and you can focus on providing a good clean. Franchisees have a higher average success rate than standalone businesses. Franchises also come with lower risks than independent businesses. FranNet ran a study that found that 92% of franchises were still operating after 2 years and 85% were still going after five years. Conversely, a quarter of independent businesses fail within their first year and 50% were closed within 5 years.

Cleaning does not require a ton of training, but working with a commercial janitorial company means that you not only get name recognition with an already established, reputable brand, but you also get additional training from the professionals to add to your quiver of skills. Learning how to do floor stripping and waxing makes you a more skilled and valued service provider. Deepening your cleaning knowledge can also lead to more one-time work, which is a good money maker that does not require you to commit to long-term projects.

Commercial Cleaning Franchising: Specialization and Keeping Up with Trends

As a commercial cleaner you can be as specialized or as general service as you’d like. Being a good, quick cleaner is the most important part. The commercial cleaning industry is constantly changing, which means that there are always new trends to watch out for. This growth is due to the fact that businesses are realizing the importance of keeping their premises clean and orderly. By staying up on the latest trends and innovations in cleaning, you only put yourself at an advantage.

There are plenty of similarities between residential and commercial cleaning, but in the end, they are some stark differences between the industries. Commercial businesses tend to have more leeway and flexibility for those wishing to start their own franchise. If you’re an entrepreneur ready to embrace everything that janitorial franchises have to offer, don’t hesitate to reach out.

Start Your Commercial Cleaning Franchise with Corvus Janitorial Systems

You can fill out our contact form online or call us today to schedule a meeting with a Corvus representative who can tell you everything you need to know about starting a self-owned janitorial business with the help of the established Corvus Janitorial Systems brand!

Filed Under: Articles, Commercial Cleaning, Start a Cleaning Business

Using Your Tax Refund to Start a Commercial Cleaning Franchise

April 15, 2023 by Evan-Scott Morris

April showers bring May flowers! And if you’re like many Americans, April also brings the biggest “bonus” check of the year…aka your tax refund. Let’s be honest- the temptation to spend this extra chunk of change on frivolous, in-the-moment purchases is very real. But when used wisely, a tax refund can put you in the position to achieve long-term, financial success. What if we told you this success also includes perks like flexible hours and being your own boss? How, you might ask?

Answer: Start Your Own Commercial Cleaning Franchise.

Read on to discover five reasons why using your tax refund to start a commercial cleaning franchise is one of the smartest financial decisions you can make.

1. Experience the Perks of Entrepreneurship

As mentioned above, one of the major perks of starting a cleaning franchise is reaping the benefits of entrepreneurship. Sure, taking a job as a janitor requires zero cost upfront. It does, however, bind you to what many consider burdens of the traditional workplace (think: reporting to a supervisor, a set schedule, and challenging co-workers, just to name a few.)

When you invest in yourself, you become your own boss and can take control of your career. You can set your own schedule and decide which tasks to prioritize, allowing you to balance your work with your personal life. Additionally, you can take pride in building a business from the ground up and watch it grow and thrive over time. Sounds pretty great, right?

2. Become a Part of a Supportive Community

Perhaps there is a part of you that has always dreamed of being a business owner, but when it comes down to it, you have no idea where to start. And understandably so! Between finding customers, knowing what equipment and supplies to purchase, and managing billing, it is an overwhelming process to say the least. The good news is you don’t have to do it alone.

When you join a franchise, you gain access to a team of experienced professionals who can help you navigate the ins and outs of running a successful business. You don’t have to start from scratch and figure out everything on your own. Instead, you can rely on the support of your fellow franchisees and the franchisor to help you get started and succeed.

By starting your commercial cleaning franchise with a company like Corvus, you are joining a community of experienced professionals who will provide you with the marketing, accounts, financing, and other resources required to succeed. That way, you can focus on what’s most important to you: providing high-quality service to your customers.

3. The Demand Has Never Been Higher

If high inflation rates and talks of a recession worry you, know that you are not alone. Job security is needed now more than ever, and janitorial services are always in demand. In fact, the contract cleaning market size was valued at $343.34 billion in 2022 and is expected to grow at a rate of 6.3% from 2023 to 2030.

The effects of Covid-19 showed the importance of maintaining a clean and hygienic workspace, proving just how essential the work of a professional cleaner is. This trend is expected to continue, and according to the U.S. Bureau of Labor Statistics, there will be more than 236,500 new janitorial positions by the end of 2023.

4. Experience Job Satisfaction

Resting your head at night knowing that you’ve made an impact is a great feeling. By providing high quality cleaning services, you are positively affecting everyone who steps foot in that facility. Take Corvus of San Antonio Franchisee Jorge Rodriguez, for example, who recently received this (raving) review on Google:

“Our school is cleaner than it has ever been. I am so impressed. I am increasing our time to 5 days a week starting in June. I am a happy customer, and our teachers are thrilled to have their classrooms so clean. It matters!”

5. Achieve Financial Freedom

Becoming a Franchise Owner does not guarantee immediate financial success, but it certainly has the potential to become a lucrative endeavor. Franchisees often start their cleaning business as a way to earn supplemental income, but in the 20+ years that Corvus has existed, we’ve watched numerous men and women turn their franchises into full-time jobs by which they support themselves entirely. Whether you’re looking for a new side hustle or hoping to change your day job entirely, opening a cleaning franchise is a sure-fire way to do just that.

Conclusion

Investing in yourself is the best investment you will ever make. The list above only begins to touch on the benefits of using your 2023 tax refund to open a commercial cleaning franchise with Corvus. Contact your local Corvus office today to learn more.

About Corvus Janitorial Systems

Corvus Janitorial Systems is a franchisor of commercial and office cleaning systems which delivers customized janitorial and office cleaning services to a range of industries and organizations by its national network of locally owned owner-operated franchisees. The company has 21 regional support offices across the United States with more than 1,000 franchisees. Corvus has been recognized in Entrepreneur Magazine’s 2023 lists: Franchise 500, Top Ten Franchises for under $50,000, and Fastest Growing Franchises. Other recognition includes Top Disinfection and Sanitization Company by HR magazine and Most Trusted Disinfection and Sanitization Companies by The Enterprise World. Existing ownership and management have been in place since 2004.

Filed Under: Articles, Franchise Ownership, Start a Cleaning Business, Tips & Trends Tagged With: San Antonio

The Five Step Franchise Sales Process Infographic & Guide

April 14, 2023 by Evan-Scott Morris

Starting a new business can be overwhelming, especially if you’re doing it by yourself. At Corvus, we’ve helped hundreds of aspiring entrepreneurs start their own successful cleaning businesses through our office cleaning franchise program. To help you get a sense of what’s involved in becoming a Corvus Franchisee (or a franchise owner in general), we’ve put together this quick five step franchise sales process infographic and guide.

Franchise Sales Process Infographic from Corvus. Step 1. Inquire Step 2. Set a disclosure meeting Step 3. Attend disclosure meeting Step 4. 14 day waiting period Step 5. Purchase your franchise

Step 1: Inquire

The first step in the franchise sales process is also the easiest. Let the franchisor know that you are interested in becoming a franchisee! For Corvus, it is as simple as filling out our contact form with your name, phone number, email, and closest metro area. After we receive your info, we’ll give you a call to set up an initial discovery meeting at one of our regional offices.

Steps 2 & 3: Set Up and Attend a Disclosure Meeting

During your initial discovery meeting you’ll meet the regional team and start learning more about the business, including things like fees, schedules, and expectations. We’ll also be happy to answer any questions you have during this initial meeting. Don’t worry – you don’t need to bring anything with you (except for a pen and paper to take notes). During this meeting we’ll also ask you to fill out a Franchise Disclosure Document (FDD) and background check form.

Step 4. 14 Day Waiting Period

After your first meeting, there will be a 14 day waiting period during which we will run your background check. This 14 day waiting period gives you the opportunity to review Corvus’ (the franchisor’s) FDD in detail. During this waiting period, if you have any questions or concerns, you’re free to reach out to your local Corvus team for more information.

Step 5: Franchise Sale

After you’ve passed your background check and the 14-day waiting period is over, we’ll have you come back into the regional office to complete your franchise sale paperwork and schedule your training session – which usually happens a week after signing.

Initial Offering Period

Now that you’re an official Corvus Franchisee, it’s our job to start getting you clients. Typically, you’ll start off with 1-2 cleans per week, as we try to prioritize new Franchisees whenever we sign a new service contract.

The Future is Yours

What comes next? That’s up to you! We’ll continue to support you with financing, technical support, and customer acquisitions, while you’ll support the Corvus brand by providing professional, best-in-class commercial cleaning services to our wonderful customers. Because together, we can Make Lives Better.

Ready to get started with your Corvus Franchise? Contact our franchise team to start today!

Filed Under: Franchise Ownership, Guides, Start a Cleaning Business, Tips & Trends

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