Stanley Steemer Franchise FDD, Profits, Costs & Fees (2024)
Stanley Steemer is a family-owned business, founded in 1947 by Jack A. Bates in Dublin, Ohio. Originally a small carpet cleaning company, Stanley Steemer has grown into one of the largest cleaning service providers in the U.S.
The company started franchising in 1972, expanding its services across 49 states. As of today, Stanley Steemer operates over 280 franchised locations along with several company-owned branches.
The franchise offers a wide range of cleaning services beyond carpet cleaning, including hardwood floor, tile, grout, upholstery, and air duct cleaning.
They are known for using a proprietary hot water extraction method, a truck-mounted cleaning system, and advanced technology for thorough and efficient cleaning.
This focus on innovation, coupled with their manufacturing plant in Ohio that produces their equipment, sets them apart from other cleaning companies. Stanley Steemer’s franchisees benefit from brand recognition, exclusive territory rights, and ongoing support, including training programs.
New franchisees undergo extensive training at the headquarters in Dublin, Ohio, ensuring they maintain the company’s high standards in customer service and cleaning quality. The company is currently seeking more franchisees to meet the increasing demand for their services in the U.S.
Initial Investment
How much does it cost to start a Stanley Steemer franchise? It costs on average between $147,000 – $427,000 to start a Stanley Steemer franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $20,000 to $100,000 |
Stanley Steemer Cleaning Platform and Accessories | $29,000 to $63,000 |
Stanley Steemer Vehicle | $45,000 to $60,000 |
Total for Stanley Steemer Vehicle (as equipped) | $74,000 to $123,000 |
Water Restoration Equipment | $10,000 to $40,000 |
Air Duct Cleaning Equipment | $8,000 to $82,000 |
Inventory | $5,000 to $8,000 |
Security Deposits & Prepaid Expenses | $0 to $250 |
Comprehensive Liability Insurance | $7,500 to $15,000 |
Computer System | $2,500 to $5,000 |
Local Market Advertising Listings | $600 to $7,000 |
Internet Connection | $40 to $200 |
Data Hosting/Backup | $75 to $250 |
Advertising | $8,500 to $14,000 |
Travel, Room, and Board for Training Program | $500 to $2,000 per person |
Proprietary Software Set Up or Conversion Fee | $495 per person per day |
Additional Funds (6 Months of Operation) | $10,000 to $30,000 |
Total | $147,210 to $427,195 |
Average Revenue (AUV)
How much revenue can you make with a Stanley Steemer franchise? A Stanley Steemer franchise makes on average $1,256,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $440,000 yearly revenue for similar commercial cleaning franchises.
Below are 10 Stanley Steemer competitors as a comparison:
Stanley Steemer Franchise Disclosure Document
Frequently Asked Questions
How many Stanley Steemer locations are there?
Stanley Steemer operates over 275 locations across the United States, including both franchised and company-owned branches. The company has a presence in 49 states, providing a wide range of cleaning services.
What is the total investment required to open a Stanley Steemer franchise?
The total investment required to open a Stanley Steemer franchise ranges from $147,000 to $427,000.
What are the ongoing fees for a Stanley Steemer franchise?
Stanley Steemer franchisees are required to pay a royalty fee of 7% of total sales, which franchisees must pay regularly to the franchisor.
This fee covers the ongoing support and use of the Stanley Steemer brand. In addition to the royalty fee, franchisees are also responsible for paying a 2% marketing fee based on total sales.
This fee contributes to national advertising campaigns, including television and radio ads, but franchisees must arrange and pay for local advertising placements themselves.
What are the financial requirements to become a Stanley Steemer franchisee?
To become a Stanley Steemer franchisee, applicants must have a minimum net worth of $300,000 and at least $100,000 in liquid capital. These financial requirements ensure that franchisees are equipped to manage the initial investment and operating expenses required to launch and sustain the business.
How much can a Stanley Steemer franchise owner expect to earn?
The average gross sales for a Stanley Steemer franchise are approximately $1.3 million per location. Assuming a 15% operating profit margin, $1.3 million yearly revenue can result in $195,000 EBITDA annually.
Who owns Stanley Steemer?
Stanley Steemer is family-owned and operated. The company was founded in 1947 by Jack A. Bates and remains under the ownership of the Bates family. It has grown significantly since its inception but continues to be privately held, with its headquarters located in Dublin, Ohio. The company is now in its third generation of family ownership, maintaining its legacy while expanding its reach across the United States.
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