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ServiceMaster Franchise Cost & Fees

Date of Incorporation: 1947
Franchising Since: 1948
Headquarters: Memphis, Tennessee

Business Description: ServiceMaster and its predecessors have been performing professional cleaning services since 1929 when Marion E. Wade began the business as a sole proprietor.

Franchise Offer: ServiceMaster Clean currently offers the following franchises:

  1. Disaster Restoration Services: provides disaster restorative services direct to customers and through insurance adjusters to customers following a fire, flood, earthquake or storm.
  2. Floor Care Services: provides carpet, hard surface floor care, wall and other heavy cleaning in homes, apartments, and condominiums and other periodic non-janitorial cleaning and maintenance to management or tenants of any commercial or institutional building.
  3. Janitorial Services: provides contracted janitorial services on a continuing basis and may also provide carpet, furniture and other periodical non-janitorial cleaning and maintenance to management or tenants of commercial or institutional buildings.
  4. Small Market Services: provides contracted janitorial services as well as carpet and furniture cleaning and disaster restoration services.
  5. Recovery Management Services: provides recovery management and disaster services directly to commercial customers who have the capacity to provide commercial restoration opportunities of $500,000 or greater in contract value and who are not existing Disaster Restoration Services Customers.

Financial Assistance: The franchisor does not offer direct financing. Their affiliate, SMAC, does offer financing to franchisees or the franchisee may choose another lender or finance company. If the franchisee is interested in obtaining a loan guaranteed through the United States Small Business Administration, ServiceMaster is listed on their Franchise Registry which provides expedited loan processing for franchise businesses.

Training and Assistance: The training program is called the Academy and consists of several hours of both classroom training and on-the-job training. The Academy is a school of intensified training and is two to six weeks long depending on the type of license(s) the franchisee purchases. The franchisee or the manager must attend the Academy and pass a written test prepared by ServiceMaster within six months after the purchase of the franchise. If the franchisee purchases a Disaster Restoration-Floor Care Services combination he or she will attend a three-week Disaster Restoration Academy in Memphis, Tennessee, and then the next scheduled one-week Floor Care Academy in Memphis, Tennessee. If the franchisee plans to operate a Small Market business, he or she will attend a three-week Disaster Restoration Academy, then the next scheduled one-week Floor Care Academy in Memphis, Tennessee, and return to Memphis, Tennessee, to attend the one-week of Janitorial Production Academy. If the franchisee purchases a Recovery Management Services franchise, he or she will attend the next scheduled one-week Recovery Management Academy in Memphis, Tennessee. The hotel cost and some meals for one person to attend the Academy are included in the Initial Franchise Fee. Franchisees are required, at their expense, to attend at least three seminars, workshops, conventions, or meetings offered by the franchisor during each year. The franchisor will conduct inspections and provide other training programs as deemed appropriate. The franchisor may also may provide mentoring and on-site support on an as needed basis for Recovery Management Services franchises.

Territory: The franchisor will designate a territory within which the franchisee will perform services. The franchisee will not receive an exclusive territory. He or she may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands controlled by the franchisor. The franchisor may establish or may already have established another franchised or company-owned business that may compete with the franchisee in the territory.

Term of Agreement and Renewal: The length of the franchise term is five years. The franchisee has the option to renew the franchise for an additional five years, if the franchisee has substantially complied with the agreement and maintained the business in accordance with system standards.

Obligations and Restrictions: ServiceMaster does not require that the franchisee personally supervise the franchised business, in which case the franchisee must employ a manager who will be responsible for direct, on-premises supervision of the business. The manager must successfully complete the Academy training program. The franchisee must offer and provide the required services. The franchisee must not actively solicit sales from customers outside of the defined territory (unless the franchisee is a Recovery Management Services Management franchise and market consistent with the marketing standards in the Operations Manual).

Estimated Number of Units: 5,035

Investment Tables:
Initial Investment for Disaster Restoration Services
Name of Fee Low High
Initial Franchise Fee $61,900 $67,000
Opening Package $43,413 $97,345
Vehicle - Purchase $3,000 $4,000
Vehicle Graphics $975 $1,500
Insurance: Vehicle - Business Auto $1,200 $1,200
Insurance: Comprehensive General Liability $2,000 $2,000
Workers’ Compensation and Occupational Disease Insurance (depending on the state and amount of payroll) $750 $2,000
Pollution Liability Insurance Coverage with Mold Coverage From $2,250 and up, depending upon revenue volume
Travel and Other Expenses for Training $600 $1,000
The Institute of Inspection, Cleaning and Restoration Certification in WRT, ASD, FSRT, or OCT $260 for all four certifications ($65 per test per individual)
Computer Hardware and Software $9,800 $10,300
High Speed Internet Connection $300 $1,000
Advertising - 3 months $1,200 $6,400
Miscellaneous Opening Costs $1,000 $7,200
Additional Funds - 3 months $12,000 $68,500
Real Estate and Improvements Varies
Estimated Totals:
Market <1,000,000 population
Market >1,000,000 population

$130,848
$135,948

$256,555
$261,655
Initial Investment for Floor Care Services
Name of Fee Low High
Initial Franchise Fee $24,900 $24,900
Opening Package $9,612 $27,126
Vehicle - Purchase $3,000 $4,000
Vehicle Graphics $975 $1,500
Insurance: Vehicle - Business Auto $1,200 $1,200
Insurance: Vehicle Liability Package $2,000 $2,000
Workers’ Compensation and Occupational Disease Insurance (depending on the state and amount of payroll) $750 $2,000
Travel and Other Expenses for Training $600 $1,000
Computer Hardware and Software $3,500 $4,000
High Speed Internet Connection $60 $150
Advertising - 3 months $600 $6,400
Miscellaneous Opening Costs $1,000 $4,200
Additional Funds - 3 months $7,500 $37,500
Real Estate and Improvements Varies
Estimated Total (not including real estate) $72,197 $111,976
Initial Investment for Janitorial Services
Name of Fee Low High
Initial Franchise Fee $31,900 $31,900
Equipment Credit Up to $20,000
Vehicle - Purchase $3,000 $4,000
Vehicle Graphics $975 $1,500
Insurance: Vehicle $1,200 $1,200
Comprehensive General Liability Insurance $2,000 $2,000
Workers’ Compensation and Occupational Disease Insurance (depending on the state and amount of payroll) $750 $2,000
Travel and Other Expenses for Training $600 $1,000
Computer Hardware and Software $3,500 $4,000
High Speed Internet Connection $60 $150
Advertising - 3 months $600 $6,400
Miscellaneous Opening Costs $1,000 $4,200
Additional Funds - 3 months $7,500 $47,500
Real Estate and Improvements Varies
Estimated Total (not including real estate) $69,585 $74,398
Initial Investment for Small Market Services
Name of Fee Low High
Initial Franchise Fee $33,900 $33,900
Equipment Credit Up to $20,000
Opening Package $48,000 $120,000
Vehicle - Purchase $3,000 $4,000
Vehicle Graphics $975 $1,500
Insurance: Vehicle $1,200 $1,200
Insurance: Vehicle Liability Package $2,000 $2,000
Workers’ Compensation and Occupational Disease Insurance (depending on the state and amount of payroll) $750 $2,000
Pollution Liability Insurance Coverage with Mold Coverage From $2,250 and up, depending upon revenue volume and other factors
Travel and Other Expenses for Training $600 $1,000
The Institute of Inspection, Cleaning and Restoration Certification in WRT, ASD, FSRT, or OCT $260 for all four certifications ($65 per test per individual)
Computer Hardware and Software $7,800 $8,300
High Speed Internet Connection $60 $150
Advertising - 3 months $600 $6,400
Miscellaneous Opening Costs $1,000 $4,200
Additional Funds - 3 months $7,500 $47,500
Real Estate and Improvements Varies
Estimated Total (not including real estate) $100,095 $226,360
Initial Investment for Recovery Management Services
Name of Fee Low High
Initial Franchise Fee $52,000 $52,000
Equipment $58,000 $60,000
Vehicles $16,900 $92,950
Computer Software $1,000 $2,000
Travel and Other Expenses for Training $600 $1,000
Insurance: Vehicles - Business Auto $2,400 $2,400
Insurance: Comprehensive General Liability Insurance $2,000 $2,000
Workers’ Compensation and Occupational Disease Insurance (depending on the state and amount of payroll) $750 $2,000
Pollution Liability with mold, asbestos, silica and biohazards as covered peril $3,750 $3,750
Errors and Omissions or Professional Liability $2,250 and up
General Liability Umbrella (for minimum limit) $3,500 $3,500
High Speed Internet Connection $60 $150
Business Bond Varies according to customer's requirements
Advertising - 3 months $30,750 $30,750
Miscellaneous Opening Costs $2,000 $6,200
Additional Funds -3 months (plus a $500,000 line of credit and a minimum credit limit of $1,000,000) $600 $35,000
Real Estate and Improvements Varies
Estimated Total (not including real estate) $176,500 $295,800
Other Fees for Disaster Restoration Services
Type of Fee Amount
Royalty The greater of $250 or 10% gross monthly service sales.
Construction Services fees An amount equal to 2% of gross monthly revenue from construction services without any deduction for subcontractor performed work.
National Advertising Fund The greater of $20 or 1% of gross service sales monthly.
Construction Services National Ad Fund fee 0.25% of gross service sales from construction services.
Delinquent Report Fee $50 per delinquent report.
Advertising At least 4% of gross service sales each month.
Transfer Fee $7,000 plus $1,000 for Convention or Q-Conference Attendance Fee;
$3,500 if transferred to owner's adult child who is at least 18 years of age;
No fee if transferred to spouse.
Renewal Fee $2,000 per agreement; If more than one franchise agreement is renewed at the same time, the renewal fee for each additional $1,500
Lead Fee $10,000
Add/Delete/ Change Fee $400 owner's name; business entity name; or business structure. $200 change business d/b/a name.
Estimating and Pricing Software Fee Base License: From $440 to $480 depending on how many additional license packs the franchisee requires.
Upload Fee: From $5 to $30 per upload based on invoice value.
Remote Date Back-up – 100GB $33.33 per month.
Mobile Service Administrator (MSA) $100 per month per Estimating and Pricing Software address;
$25 per month per Mobile Service Manager;
Mobile Service device such as an iPad Mini tablet with apps for fire and for water disaster restoration costs $700-$900
Academy of Service Training and On-Going Training $600-$1,000 (travel cost and some meals);
For transfer licenses: $6,310 for a three-week Academy.
Audit Cost of audit plus 1.5% per month or maximum allowable on underpayment.
Additional Requirements for Construction Services License Minimum Limits: Comprehensive General Liability, $3,000,000 per occurrence; Estimated $1,000 - $3,000
Respond 365 Job Referral Charge $48.50 per job referred through Respond 365
Media Fee $40 per job over $2,000 through Respond 365
Respond 365 Late Referral Payment Charges $100 per late referral fee payment.
Other Fees for Floor Care Services
Type of Fee Amount
Royalty The greater of $250 or 10% gross monthly service sales.
National Advertising Fund An amount equal to the greater of $20 or 1% of gross monthly service sales.
Delinquent Report Fee $50 per delinquent report.
Advertising (Local) At least 4% of gross service sales each month.
Transfer Fee $7,000 plus $1,000 for Convention or Q-Conference Attendance Fee;
$3,500 if transferred to owner's adult child who is at least 18 years of age;
No fee if transferred to spouse.
Renewal Fee $2,000 per agreement; If more than one franchise agreement is renewed at the same time, the renewal fee for each additional $1,500
Lead Fee $3,500
Add/Delete/ Change Fee $400 owner's name; business entity name; or business structure. $200 change business d/b/a name.
Remote Date Back-up – 100GB $33.33 per month.
Vonigo Software $68 per month.
Academy of Service Training and On-Going Training $600-$1,000 (travel cost and some meals);
For transfer licenses: $3,850 for a two-week Academy.
Audit Cost of audit plus 1.5% per month or maximum allowable on underpayment.
Other Fees for Janitorial Services
Type of Fee Amount
Royalty The greater of $250 or a percentage of gross service sales on a graduated scale declining from 7% to 5% depending on the services performed.
National Advertising Fund An amount equal to the greater of $20 or 0.5% of gross monthly service sales.
Delinquent Report Fee $50 per delinquent report.
Advertising (Local) At least 1% of gross service sales each month.
Transfer Fee $7,000 plus $1,000 for Convention or Q-Conference Attendance Fee;
$3,500 if transferred to owner's adult child who is at least 18 years of age;
No fee if transferred to spouse.
Renewal Fee $2,000 per agreement; If more than one franchise agreement is renewed at the same time, the renewal fee for each additional $1,500
Lead Fee $3,500
Add/Delete/ Change Fee $400 owner's name; business entity name; or business structure. $200 change business d/b/a name.
Express Time On-Line Software Fee $39.95 + 12 cents fee per call and 5 cents per numeric page.
ServiceLink Powered by CleanTelligent Software Fee $125 per month flat base fee; $50 per hour for phone/e-mail support.
Academy of Service Training and On-Going Training $600-$1,000 (travel cost and some meals);
For transfer licenses: $3,850 for a two-week Academy.
Audit Cost of audit plus 1.5% per month or maximum allowable on underpayment.
Other Fees for Small Market Services
Type of Fee Amount
Royalty The greater of $250 or 10% gross monthly service sales.
Construction Services fees An amount equal to 2% of gross monthly revenue from construction services without any deduction for subcontractor performed work.
National Advertising Fund The greater of $20 or 1% of gross service sales monthly.
Construction Services National Ad Fund fee 0.25% of gross service sales from construction services.
Delinquent Report Fee $50 per delinquent report.
Advertising At least 4% of gross service sales each month.
Transfer Fee $7,000 plus $1,000 for Convention or Q-Conference Attendance Fee;
$3,500 if transferred to owner's adult child who is at least 18 years of age;
No fee if transferred to spouse.
Renewal Fee $2,000 per agreement; If more than one franchise agreement is renewed at the same time, the renewal fee for each additional $1,500
Lead Fee $5,000
Add/Delete/ Change Fee $400 owner's name; business entity name; or business structure. $200 change business d/b/a name.
Estimating and Pricing Software Fee Base License: From $440 to $480 depending on how many additional license packs the franchisee requires.
Upload Fee: From $5 to $30 per upload based on invoice value.
Restore 365 Initial Set-up fee: $3,300 per Primary Location. No Initial Fee for Secondary Locations.
Monthly fee: $350 per month per Primary Location and $50 per month per Secondary Location.
Express Time On-Line Software Fee $39.95 + 12 cents fee per call and 5 cents per numeric page.
Remote Date Back-up – 100GB $33.33 per month.
Mobile Service Administrator (MSA) $100 per month per Estimating and Pricing Software address;
$25 per month per Mobile Service Manager;
Mobile Service device such as an iPad Mini tablet with apps for fire and for water disaster restoration costs $700-$900
Academy of Service Training and On-Going Training $600-$1,000 (travel cost and some meals);
For transfer licenses: $6,310 for a three-week Academy.
Audit Cost of audit plus 1.5% per month or maximum allowable on underpayment.
Additional Requirements for Construction Services License Minimum Limits: Comprehensive General Liability, $3,000,000 per occurrence; Estimated $1,000 - $3,000
Respond 365 Job Referral Charge $48.50 per job referred through Respond 365
Media Fee $40 per job over $2,000 through Respond 365
Respond 365 Late Referral Payment Charges $100 per late referral fee payment.
Other Fees for Recovery Management Services
Type of Fee Amount
Royalty The greater of $250 or 10% of gross monthly sales.
Referral and Job Referral Fees 2% - 5% of gross sales referral fee on claims over $3,000;
$85 per job referred through the Recovery Management Call Center.
On-Site Assistance $35 - $55 per diem plus travel hotel expenses, and Franchisor's Project Manager's labor rate.
National Advertising Fund An amount equal to the greater of $20 or 0.5% of gross monthly service sales.
Delinquent Report Fee $50 per delinquent report.
Advertising At least 4% of gross service sales each month.
Transfer Fee $7,000;
$3,500 if transferred to owner's adult child who is at least 18 years of age;
No fee if transferred to spouse.
Renewal Fee $2,000 per agreement; If more than one franchise agreement is renewed at the same time, the renewal fee for each additional $1,500
Lead Fee $3,500
Academy of Service Training and On-Going Training $600-$1,000 (travel cost and some meals);
For transfer licenses: $3,850 for a two-week Academy.
Audit Cost of audit plus 1.5% per month or maximum allowable on underpayment.

The above information has been taken from the FDD of ServiceMaster Clean. Year of FDD: 2015

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