The Maid Service Industry Cleans Up
USA TODAY - Franchising Today • July 19, 2000

If you don't have time to clean like you used to -- or even if you just hate cleaning -- you're not alone. More and more, today's busy families need help with their housework. To entrepreneurs looking for a business investment, this "clean for me" trend sweeps open the door of opportunity.

Eighty percent of dual-income households will use a residential cleaning service this year, estimates the U.S. Department of Commerce. With the demand growing, residential housecleaning has become one of the fastest growing industries in the country. It accounts for almost $20 billion in annual sales, with a projected growth rate of 20 percent.

The U.S. Bureau of Labor Statistics also recognizes the potential for growth and opportunity, noting that, "Cleaning services are expected to be the second biggest generator of new jobs for the period 1994 - 2005." In addition, the Bureau expects consumer demand to continue increasing through the next five years.

Cleaning is a Chance to Shine

The maid service industry has a growth rate that is two or three times greater than traditional franchises, so as the industry grows, so do prime opportunities for prospective franchise owners.

Don DeBolt, president of the International Franchise Association, says that franchises related to personal services are a good bet in today's economy and, on the hot list, DeBolt puts "Those types of things that help people utilize their time more effectively. With most households having two working heads of household, there's less and less time to take care of some of the maintenance aspects of life."

Entrepreneur Magazine's "21st Annual Franchise 500" ranks three maid services in the top 100 franchises. Numerous factors are considered in Entrepreneur's ranking: financial strength and stability, the system's growth rate and size, the number of years in the business, the length of time franchising, and start-up costs. Also considered are litigation history, percentage of terminations, and whether the company provides financing. Companies listed in Entrepreneur's Franchise 500 include: MaidPro, Merry Maids, Molly Maids, The Maids, Maid Brigade USA/Minimaid Canada, The Cleaning Authority, Cottage Care, Home Cleaning Centers of America, Diamond Home Cleaning Services, Inc., Maid to Perfection and The Other Woman.

Where to Look

"One of the beautiful things about a franchise investment is that all pertinent information is readily available in the required disclosure information given to a candidate prior to signing a deal," says DeBolt. For instance, disclosure information includes biographical information on the company's executives and members of the board of directors, as well as lists of current franchise owners. In addition to examining disclosure documents of particular companies, DeBolt recommends comparison shopping. "Generally, you can look at our Franchise Opportunities Guide and see what other companies are out there," he says.

DeBolt also suggests researching Dun and Bradstreet, Forbes Magazine, USA Today, and the Internet.

Affordable Choices

Many maid service franchises enjoy flexible, family-friendly hours, with no evening or weekend work. Many also operate as cash businesses, meaning no receivables.

Most maid service franchises can be purchased for around $20,000, while overall they range from $15,000 to $85,000. That price range puts residential cleaning franchises on the affordable end of the franchise price scale, though many franchises cost less than people may think. "Forty three percent of franchises are going to require less than a $100,000 investment. There's something for everybody because 20 percent of the concepts even require less than a $50,000 investment," says DeBolt.

Though each franchise offer differs, the franchise fee generally buys such rights as exclusive territories, marketing and advertising programs; equipment, products and supplies; home office support; training and assistance, proprietary software to help run the business, a complete management training program; and ongoing training. Almost as important, the new franchise owner has access to a network of owners and an overall system that benefits from years of study and research, eliminating trial and error from the process.

Who Can Clean Up?

With the extensive support provided by most maid service franchisors, new owners don't need any special background or training. Many owners are retirees, have served in the military, or have extensive business backgrounds. Others have never run a business. Traits franchisors commonly look for include candidates who are passionate about building a business and who work well with people.

Even if mops and vacuum cleaners don't turn you on, a cleaning franchise could still work because many franchise owners merely manager the business. Franchisors provide telephone support, supplemented by on-site visits and regional meetings. Written materials, audio and video tapes, CDs, and an intranet communications system provide additional back-up.

The Profit Potential

There are no income guarantees, of course, but with the owners' investment and the franchisor's support, some cleaning businesses do surprisingly well.

The maid service business isn't seasonal, either, and historically, it doesn't fluctuate with the economy. Because the industry is still relatively new it's not saturated yet, which could be good news even for less well-known franchise companies. "Sometimes, the ground floor can be the place to start because you can get a broader territory for long-range development," says DeBolt. "You certainly get the attention of the franchisor. They know how dependent they are on those early franchisees to make their concept successful. So -- if they're doing it right -- they're going to make sure that you have every support you could possibly have to make it work."

Whether a new system, or a concept with decades of experience, the maid services market provides many options for investors. Residential housecleaning is currently approaching $20 billion in annual sales. So even if you don't have time to clean, you're in good company -- and that puts an investment opportunity in your predicament.