Franchising a cleaning business costs $50,000 to $200,000 to set up. Most cleaning franchises charge a 5 to 8 percent royalty fee. A strong franchise system can open 10 to 50 locations within 5 years.
What Does It Mean to Franchise a Cleaning Business?
Franchising means you let other people run a copy of your business. They pay you fees to use your brand, systems, and name.
You are the franchisor. The person who buys the right to open a location is the franchisee. They follow your rules and pay you ongoing fees.
How Franchising Works
You build a proven cleaning business first. Then you create a system that others can follow step by step.
Franchise buyers pay an upfront fee to join. They also pay monthly royalties on their sales. In return, you give them your brand, training, and support.
Franchising Versus Licensing
Franchising gives you more control than licensing. With a franchise, you set the rules for how each location runs.
With licensing, you just sell the right to use your name. You have less say in how the business operates. Most cleaning companies choose franchising for this reason.
When Is Your Cleaning Business Ready to Franchise?
Not every cleaning business should franchise. You need a strong foundation first.
Signs You Are Ready
- Steady profits for 2 to 3 years — your business model is proven
- Systems are written down — you have manuals for every task
- Strong brand name — people in your area know and trust you
- Your business runs without you — you are not doing every job yourself
- You can teach others — your methods are simple enough to copy
Signs You Are Not Ready
- No written processes — you do everything from memory
- Thin profit margins — you barely break even each month
- You are the business — clients hire you, not your company
- Less than 2 years in business — not enough track record
Have you not started your cleaning business yet? Read our guide on how to start a cleaning business first. Build a strong base before you franchise.
How Much Does It Cost to Franchise Your Cleaning Business?
Setting up a franchise system is not cheap. Plan to spend $50,000 to $200,000 before selling your first franchise.
Franchise Setup Cost Breakdown
| Expense | Cost Range | Details |
|---|---|---|
| Franchise lawyer | $15,000 - $50,000 | Writes your Franchise Disclosure Document and agreements |
| Franchise Disclosure Document | $5,000 - $15,000 | Required legal document for every franchise sale |
| Operations manual | $5,000 - $15,000 | Step-by-step guide for franchise owners |
| Training program | $5,000 - $20,000 | Videos, materials, and hands-on training setup |
| Brand and marketing | $5,000 - $25,000 | Logo updates, franchise sales materials, website |
| State registration fees | $2,000 - $10,000 | Some states require franchise registration |
| Franchise consultant | $10,000 - $50,000 | Optional but helpful for first-time franchisors |
| Total | $47,000 - $185,000 | Typical range for cleaning franchises |
Ongoing Costs as a Franchisor
Your costs do not stop after setup. You need staff to support your franchise owners.
- Support team salaries — $40,000 to $80,000 per person each year
- Legal updates — $3,000 to $10,000 per year for document updates
- Marketing fund — most franchisors spend 1 to 2 percent of system-wide sales
- Technology — software and tools for franchise owners, $500 to $2,000 per month
What Legal Documents Do You Need to Franchise?
Franchise law is strict in the United States. You need specific documents before you sell a single franchise.
The Franchise Disclosure Document
This is the most important document. Federal law requires it. You must give it to every buyer at least 14 days before they sign or pay.
It has 23 required sections. These cover your fees, your financial history, and the rules of the franchise.
What the Franchise Disclosure Document Includes
- Your company history — how long you have been in business
- All fees — upfront costs and ongoing charges
- Territory rights — what area each franchise owner gets
- Your obligations — what support you provide
- Financial statements — audited records of your business
- Franchisee obligations — what the buyer must do
- Renewal and termination terms — how the contract ends
The Franchise Agreement
This is the contract between you and each franchise buyer. It spells out the terms of the relationship.
It covers the franchise fee, royalties, territory, and length of the agreement. Most franchise agreements last 5 to 10 years.
State Registration
Some states require extra steps before you can sell franchises there. About 14 states have franchise registration laws.
A franchise lawyer will handle this for you. Budget $500 to $2,000 per state for registration fees.
How Do You Find and Screen Franchise Buyers?
Finding the right franchise buyers is critical. A bad franchise owner can damage your brand.
Where to Find Franchise Buyers
- Franchise trade shows — meet buyers face to face
- Franchise listing websites — sites like Franchise Gator and BizBuySell
- Your own website — create a "franchise with us" page
- Industry contacts — people who already know the cleaning business
- Social media ads — target people interested in business ownership
How to Screen Buyers
Not everyone who wants to buy should be approved. Screen every buyer carefully.
- Check their finances — they need enough money to start and survive the first year
- Ask about experience — management or business experience helps
- Look at their character — are they willing to follow your system?
- Do background checks — credit reports and criminal history checks
- Talk to their references — call past employers or business partners
The Ideal Franchise Buyer
The best franchise buyers have savings of $50,000 to $150,000. They are willing to follow a proven system. They have some management or customer service experience.
They do not need cleaning experience. Your training should teach them everything.
What Should Your Franchise Training Program Include?
Your training program is what makes the franchise work. It turns a new owner into a skilled operator.
Core Training Topics
- Cleaning methods and standards — your specific way of cleaning
- Customer service — how to handle clients and complaints
- Hiring and managing staff — finding and keeping good cleaners
- Scheduling and routing — planning jobs for the best use of time
- Sales and marketing — getting new clients in their area
- Pricing and quoting — how to set prices and give quotes
- Bookkeeping basics — tracking money in and money out
- Using your software and tools — the systems that run the business
Training Format
Most cleaning franchises use a mix of formats. This keeps training flexible and complete.
- In-person training — 1 to 2 weeks at your main office
- On-site training — 1 to 2 weeks at their location
- Online training videos — for ongoing learning after they open
- Operations manual — a written guide they can check anytime
Ongoing Support
Training does not end after the first month. Good franchisors provide ongoing support.
- Monthly check-in calls — review their numbers and answer questions
- Annual conferences — bring all franchise owners together
- Updated training materials — refresh content as your methods improve
- Help desk or phone support — a way to reach you when problems come up
How Do You Set Franchise Fees and Royalties?
Your fee structure must be fair to buyers and profitable for you. Get this wrong and you will lose buyers or lose money.
Types of Franchise Fees
- Initial franchise fee — a one-time payment to join, usually $20,000 to $50,000
- Ongoing royalty — a percentage of sales or a flat monthly fee
- Marketing fee — 1 to 2 percent of sales for national marketing
- Technology fee — $100 to $500 per month for software access
Royalty Structure Comparison
| Royalty Type | Typical Range | Best For |
|---|---|---|
| Percentage of gross sales | 5% - 8% | Franchisors who want income to grow with each location |
| Flat monthly fee | $500 - $2,000 | Franchise owners who want predictable costs |
| Tiered percentage | 4% - 10% | Systems that reward higher sales with lower rates |
| Hybrid model | Varies | Combines a small flat fee with a lower percentage |
Franchise Versus Independent Growth Comparison
| Factor | Franchise Model | Independent Growth |
|---|---|---|
| Startup cost per location | Paid by franchise buyer | Paid by you |
| Speed of growth | 10 to 50 locations in 5 years | 2 to 5 locations in 5 years |
| Your risk per location | Low | High |
| Control over operations | Moderate (through agreements) | Full control |
| Revenue per location | 5% - 8% of sales | 100% of profits |
| Legal costs | $50,000 - $200,000 upfront | Low |
Need help setting your prices before you franchise? Read our guide on how to price cleaning services. Strong pricing is the foundation of a franchise that works.
What Are Common Franchising Mistakes to Avoid?
Many cleaning business owners make costly errors when they franchise. Learn from their mistakes.
Franchising Too Soon
Do not franchise until your business is proven and profitable. Rushing into it before your systems are solid leads to failure.
Wait until you have at least 2 to 3 years of strong results.
Skipping the Lawyer
Franchise law is not something to handle on your own. One mistake in your Franchise Disclosure Document can lead to lawsuits.
Hire a lawyer who focuses on franchise law. It is worth every dollar.
Selling to the Wrong People
Saying yes to every buyer is tempting. But a bad franchise owner hurts your brand and drains your time.
Screen every buyer with care. Say no to people who are not a good fit.
Weak Training
Poor training leads to poor results. Your franchise owners need clear steps for every part of the business.
Invest in a strong training program before you sell your first franchise.
Setting Fees Too High or Too Low
Fees that are too high scare away good buyers. Fees that are too low leave you without enough money to support them.
Study what other cleaning franchises charge. Set your fees in a similar range.
Ignoring Franchise Owners After the Sale
Your job does not end when you cash the franchise fee. Ongoing support is what keeps franchise owners happy and successful.
Plan for regular check-ins, annual meetings, and a support team.
Not ready to franchise yet? Learn how to scale your cleaning business with other methods. Build a bigger base before you franchise.