PUROCLEAN Giving Away Franchises

Monzie · May 17, 2013

Inside back cover of the latest CLEANFAX. No up front licensing fee as long as you currently bring in 300K in annual revenue. If I brought in THAT much, why would I WANT to become a FRANCHISE :icon_question:

Desk Jockey · May 17, 2013

Is that Jimmy in your avatar Mike? LOL

Ken Snow · May 17, 2013

That is really wacky!

Monzie · May 17, 2013

Zeke and Lucas were admiring Zekes new hunting dog. After a while the dog started licking his private parts. Lucss said, "You know Zeke, I always wished I could do that. " "Go ahead, "Zeke replied, "but he'll probably bite you."

Desk Jockey · May 17, 2013

Shane Deubell · May 17, 2013

Kinda tough to pay royalties on revenue you brought in under the independent name. Who cares about the franchise fee anyway..., its the recurring expense, off the top.

Desk Jockey · May 17, 2013

Most don't make you pay for what you bring to the table. At least that's what I heard about Professional Cleaning Systems, Rainbow and Sears.

That franchise could be killer if you're producing some big numbers. :eekk:

ThaBeast · May 17, 2013

Doc Holliday said:
Most don't make you pay for what you bring to the table. At least that's what I heard about Professional Cleaning Systems, Rainbow and Sears.

That franchise could be killer if you're producing some big numbers.

Rainbow tried to sell me a franchise a couple of years ago, they made it pretty clear they wanted a percentage of current work

Sent from my iPad using Tapatalk while peeing in the new tech's coffee

dealtimeman · May 18, 2013

Puro clean is a joke, I buy so much equipment from failed puroclean franchises. Franchisee tell me there is No company support and the programs negotiated rates for restoration also blow. A lot of good people have lost a lot of money with them.

They also demand you buy all maroon equipment and are pretty demanding that all equipment be uniform ( you have to buy from corporate).

Desk Jockey · May 18, 2013

I've seen a lot of there packages being sold on Craigslist and on Ebay. Nice thing is it's like new, hardly used. But it's red. :errf:

Michael many times corporate sells it to them below retail and with end pricing. I think they get a small return from Master distributor programs. When the franchise gets a percentage off the top it only makes sense for them to offer everything they can at a discount to help them raise their gross.

GCCLee · May 18, 2013

Franchises are like Fat Pocketed Politicians.

Ken Snow · May 18, 2013

Franchises can have a place certainly. It helps someone get started in a business with not so much start up and trains them on business systems and the product, service they are offering. I am not sure why someone who is established with 300k in volume would choose to purchase a franchise~ why not just invest in more marketing since there already would seem to be brand recognition and profit for investment to do so. Putting even an extra 30-50k into marketing for a year would likely be less than total franchising costs and have far more return over the long haul.

Desk Jockey · May 18, 2013

Ken Snow said:
Franchises can have a place certainly. It helps someone get started in a business with not so much start up and trains them on business systems and the product, service they are offering. I am not sure why someone who is established with 300k in volume would choose to purchase a franchise~ why not just invest in more marketing since there already would seem to be brand recognition and profit for investment to do so. Putting even an extra 30-50k into marketing for a year would likely be less than total franchising costs and have far more return over the long haul.

As far as restoration, that used to be the way it was but in the last decade the majority of the franchises get you nationwide preferred vendor work. So a startup hits the ground running, work is spoon fed to them, no marketing needed, it just is part of the benefit of being in the franchise. It's added tremendous value to being a franchise owner in my opinion.

The real trick hanging on to the money that flows though the business. Not only do you have to deal with the regular chit that we do but then you have someone taking a good share off the top too. I guess you can look at the franchise fee as your marketing budget???

No sure how I feel, I can see some good benefits but it would kill me to give then a share off the top. Although if there were still a decent enough margin I supposed it wouldn't matter what I gave them.

John Olson · May 18, 2013

No they charge them way over retAil way over. Have 3 local guys that all but started crying when I told them how much a x3 and a 2800 cost didn't even get to the rover before they told me they couldn't hear anymore. Worst of the worst as Micheal said. Many a good (naive) man has been taken by Puroclean.

Desk Jockey · May 18, 2013

They are not all like that then.

I'm pretty sure Servicemaster & Rainbow have guaranteed to beat prices for their people. Sears also offers better pricing on TM's, drying equipment and chems, I don't think they have the guaranteed to beat though.

Shane Deubell · May 18, 2013

Looked at sears when we started but the royalty was 9% :bull:

, at the time if you had at least $150k in revenue they would waive some of franchise fee or all if you had more revenue. But your current revenue would be hit at 1/2 of the normal royalty rate so 4.5%.

Still thought about it and probably would do it if the royalty was lower 9% is way too high IMO. It costs a lot of money/time to build an independent name so you pay either way, no benefit on commercial side so it is out of the question now.

John Olson · May 18, 2013

Doc Holliday said:
They are not all like that then.

I'm pretty sure Servicemaster & Rainbow have guaranteed to beat prices for their people. Sears also offers better pricing on TM's, drying equipment and chems, I don't think they have the guaranteed to beat though.

I was only talking about Puroclean

TomKing · May 23, 2013

Doc Holliday said:
Most don't make you pay for what you bring to the table. At least that's what I heard about Professional Cleaning Systems, Rainbow and Sears.

That franchise could be killer if you're producing some big numbers.

Doc
That is not true with Rainbow. They have called me 3 times to try to sell my their failing franchise here in Indy. I told them I did not want to pay for the first $750k. They would not agree to it. I told them if they are that great they should be able to help me double with the success we have had so far. needless to say my company name has not changed.

I have fired 3 sears guys not sure I would ever want one of those franchises.

KevinL · May 23, 2013

We had a Puroclean here a few years ago that didn't make it.

cu · May 24, 2013

I worked at a puroseconds...purofirst years ago. They got a lot of work at that franchise . The pureoclean owner is an Irish guy I think he is from county Clare hence the franchise colors .. I guess enough said about that......what ever happened to the other restoration franchise steamatici think it was called

Desk Jockey · May 24, 2013

what ever happened to the other restoration franchise steamatici think it was called

They have large operation in KC and Wichita, the local one closed up here a couple of years ago. BMSCAT (Blackmon Mooring Steamatic Catastrophe has lots of nationwide accounts, we did a WDR loss a few months back for them, they paid quickly and no problems at all. :icon_cool:

http://www.bmscat.com/

trojancarpetcare · May 26, 2013

If i was making 300000 I would not want to be dealing with anybody franchise and their rules.

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