ServiceMaster Clean
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:
- Disaster Restoration Services: provides disaster restorative services direct to customers and through insurance adjusters to customers following a fire, flood, earthquake or storm.
- 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.
- 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.
- Small Market Services: provides contracted janitorial services as well as carpet and furniture cleaning and disaster restoration services.
- Recovery Management Services: provides recovery management and disaster restoration services directly to commercial customers that have the capacity to provide commercial restoration opportunities meeting or exceeding $500,000 in contract value.
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. The hotel cost and some meals for one person to attend the Academy are included in the Initial Franchise Fee.
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 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 franchisee must offer and provide the required services.
Estimated Number of Units: 4,940
Investment Tables:
Initial Investment:
Disaster Restoration Services
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $59,900 | $65,000 |
| Opening Package | $56,525 | |
| Vehicle - Purchase | $3,000 | $4,000 |
| Insurance: Vehicle Liability Package | $1,200 | $2,000 |
| Travel and Other Expenses for Training | $600 | $1,000 |
| Computer Hardware and Software | $6,500 | $7,000 |
| High Speed Internet Connection | $150 | $300 |
| Advertising - 3 months | $1,200 | $6,400 |
| Miscellaneous Opening Costs | $1,000 | $7,200 |
| Additional Funds - 3 months | $12,000 | $18,500 |
| Estimated Totals: Market <1,000,000 population Market >1,000,000 population |
$136,975 $142,075 |
$156,025 $161,125 |
Floor Care Services
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $24,900 | |
| Opening Package | $21,900 | |
| Vehicle - Purchase | $3,000 | $4,000 |
| Insurance: Vehicle Liability Package | $1,200 | $2,000 |
| Travel and Other Expenses while at 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 | $12,500 |
| Estimated Totals | $62,160 | $77,250 |
Janitorial Services
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $31,900 | |
| Vehicle - Purchase | $3,000 | $4,000 |
| Insurance: Vehicle Liability Package | $1,200 | $2,000 |
| Travel and Other expenses while at 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 | $12,500 |
| Estimated Totals | $47,860 | $63,350 |
Small Market Services
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $31,900 | |
| Opening Package | $48,550 | |
| Vehicle - Purchase | $3,000 | $4,000 |
| Insurance: Vehicle Liability Package | $1,200 | $2,000 |
| Travel and Other Expenses while Training | $600 | $1,000 |
| Computer Hardware and Software | $4,500 | $5,000 |
| High-Speed Internet Connection | $60 | $150 |
| Advertising - 3 months | $600 | $6,400 |
| Miscellaneous Opening Cost | $1,000 | $4,200 |
| Additional Funds - 3 months | $7,500 | $12,500 |
| Estimated Total | $96,410 | $111,900 |
Recovery Management Services
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $52,000 | |
| Equipment | $58,000 | $60,000 |
| Vehicles | $16,900 | $92,950 |
| ITravel and Other Expenses while at Training | $600 | $1,000 |
| Computer Software | $1,000 | $2,000 |
| Insurance Vehicle | $2,400 | |
| Liability Package | $2,000 | |
| Workers Compensation | Statutory Requirements | |
| Pollution Liability with mold coverage | $3,750 | |
| Errors and Omissions or Professional Liability | $1,500 | |
| Liability Umbrella | $3,500 for minimum limit | |
| Business Bond | Varies according to customer's requirements | |
| Advertising - 3 months | $30,750 | |
| Miscellaneous Opening Costs | $2,000 | $6,200 |
| Additional Funds - 3 months | $600 (And a $500,000 line of credit and a minimum credit limit of $1,000,000) | $6,000 (And a $500,000 line of credit and a minimum credit limit of $1,000,000) |
| Estimated Total | $176,000 | $266,050 |
Ongoing Fees:
Disaster Restoration Services
| Name of Fee | Amount |
|---|---|
| Royalty | The greater of $250 or 10% gross 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 |
| 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 |
$6,400 plus $1,000 for Convention or Q-Conference Attendance Fee; $3,000 if transferred to owner's adult child who is at least 18 years of age; No fee if transferred to spouse |
| Add/Delete/ Change Fee | $400 owner's name; business entity name; or business structure; $200 change business name. |
| Xactware Licensed Products Software Fee | $89 for each base license; $19 for each additional license pack |
| Software Fee | $350 one-time set up fee if software was not included in initial license. |
| Chronicle Software Fee (Starter Package) | $170 |
| Remote date back-up – 100GB | $33.33 per month |
| Academy of Service Training and On-Going Training | $600-$1,000 (travel cost and some meals) For transfer licenses: $4,950 for a two-week Academy |
| Audit | Cost of audit plus 1.5% per month or maximum allowable on underpayment |
| Additional Requirements for Construction Services License: Insurance | Insurance must be written by insurance company satisfactory to ServiceMaster Clean and in accordance with standards and specifications set forth on SCOR and on svmlink.com or otherwise in writing. |
Floor Care Services
| Name of Fee | Amount |
|---|---|
| Royalty | The greater of $250 or 10% gross service sales |
| National Advertising Fund | The greater of $20 or 1% of gross service sales |
| Delinquent Report Fee | $50 per delinquent report |
| Advertising | At least 4% of gross service sales each month |
| Transfer Fee | $6,400 plus $1,000 for Convention or Q-Conference Attendance Fee. $3,200 if transferred to owner's adult child who is at least 18 years of age No fee if transferred to spouse |
| Add/Delete/ Change Fee | $400 owner's name; business entity name; or business structure. $200 change business name. |
| Remote Data Back-up - 100 GB | $33.33 |
| Academy of Service Training and On-Going Training | $600 - $1,000 (travel cost and some meals) For transfer licenses: $1,650 for a one-week Academy |
| Audit | Cost of audit plus 1.5% per month or maximum allowable on underpayment |
Janitorial Services
| Name of Fee | Amount |
|---|---|
| Royalty | The greater of $250 or a percentage of gross service sales on a graduated scale declining from 7% to 4% 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 | $50 per delinquent report |
| Advertising | At least 1 % of gross service sales monthly |
| Transfer Fee | $6,400 plus $1,000 Convention or Q-Conference Attendance Fee $3,200 if transferred to owner's adult child who is at least 18 years of age No fee if transferred to spouse |
| Add/ Delete/ Change Fee | $400 owner's name; business entity name; or business structure. $200 change business 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 | $225 per month |
| Academy of Service Training and On-Going Training | $600 - $1,000 (travel costs and some meals) For transfer licenses: $3,300 for a two-week Academy |
| Audit | Cost of audit plus 1.5% per month or maximum allowable on underpayment. |
Small Market Services
| Name of Fee | Amount |
|---|---|
| Royalty | The greater of $250 or 10% of 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 services sales Construction Services National Ad Fund Fees: an amount equal to .25% of gross monthly revenue from construction services |
| Delinquent Report Fee | $50 per delinquent report |
| Advertising | At least 4% of gross service sales monthly |
| Transfer Fee | $6,400 plus $1,000 Convention or Q-Conference Attendance Fee $3,200 if transferred to owner's adult child who is at least 18 years of age No fee if transferred to spouse |
| Add/ Delete/ Change Fee | $400 owner's name; business entity name; or business structure. $200 change business name. |
| Xactware Licensed Products Software Fee | $89 for each Base License; $19 for each additional license pack. $350 one time set up fee if software was not included in your initial license. |
| Express Time On-Line software fee | $39.95 + 12 cents fee per call and 5 cents per numeric page |
| Remote Data Back-up - 100 GB | $34 per month |
| Academy of Service Training and On-Going Training | $600 - $1,000 (travel cost and some meals) For transfer license: $9,900 for six weeks of Academy |
| Audit | Cost of audit plus 1.5% per month or maximum allowable on underpayment |
| Additional Requirements for Construction Services License: Insurance | Insurance must be written by insurance company satisfactory to ServiceMaster in accordance with standards and specifications set forth in the Operations Manual or otherwise in writing. |
Recovery Management Services
| Name 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 | The greater of $20 or 0.5% of gross service sales |
| Delinquent Report Fee | $50 per delinquent report |
| Advertising | At least 4% of gross service sales |
| Transfer Fee | $6,400 $3,200 if transferred to owner's adult child who is at least 18 years of age |
| Add/ Delete/ Change Fee | $400 owner's name; business entity name; or business structure. |
| Academy of Service Training Fee and On-Going Training | $50.00 one-time fee if software was not included in initial license or has not been added. Express Time On-Line software fee $39.95 + 12 cents fee per call and 5 cents per numeric page. |
| Academy of Service Training and On-Going Training | $600 to $1,000 (travel cost N/A and some meals) For transfer license: $1,650 for a one-week Academy |
| Audit | Cost of audit plus 1 and 1/2% per month or maximum allowable on underpayment |
Date of FDD: 2011
The above information has been taken from the UFOC/FDD and online sources of ServiceMaster
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