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Cleaning Franchise Industry Report

🕒Estimated Reading Time: ~7 minutes

Person with yellow rubber glove cleaning oven with a blue soapy rag.

The cleaning industry has many options for prospective franchisees to choose from. Franchises in this sector serve a vital role making sure homes, buildings, and fabrics are clean and sanitary for their customers’ needs. Some franchises in the cleaning industry even go beyond typical cleaning services to perform disaster restoration and minor repairs.

The Cleaning Franchise Industry

The cleaning industry largely breaks down into the following segments:

Major Segments of the Canadian Cleaning Industry
Major Segments of the Canadian Cleaning Industry

Commercial Cleaning or Janitorial Services

Keeping workspaces and communal areas at a business clean is a daily task, one that can take precious focus and energy away from other functions of the business. For this reason, the task of cleaning is commonly outsourced making commercial cleaning franchises greatly desired.

Unsurprisingly, commercial cleaning is one of the largest sectors of the cleaning industry. Commercial cleaning franchises, also commonly referred to as janitorial franchises, clean office buildings, educational buildings, government buildings, medical buildings, retail buildings, sports facilities, and more.

Commercial cleaning franchises offer a broad array of services, particularly if they are marketing towards those who run office buildings. Services can include cleaning floors, windows, bathrooms, etc. However, some commercial cleaning franchises may offer fewer, more specialized services, such as those that do the delicate task of medical cleaning services or cooking oil disposal services for restaurants.

According to IBISWorld, the Canadian commercial cleaning industry generates revenue of $9 billion annually and is primed to experience growth through at least 2026 as the result of “a continued expansion in corporate profit, which will likely enable businesses to more readily afford outsourced cleaning services. […] Furthermore, growth in the healthcare, transportation, retail and manufacturing markets will likely help drive sales for industry operators that serve these downstream markets.”

Per Jan-Pro Canada, Ontario has more commercial cleaning companies than any of the other provinces, with Quebec following in second.

Residential Cleaning

Demand for residential cleaning franchises is on the rise as more households acquire more disposable income and have less free time to spend cleaning. In today’s familial landscape, many households have two incomes. While these households are bringing in more money, they also have less time to spend doing household chores.

Many families are now choosing to outsource home cleaning to professionals, hiring residential cleaning franchises that they can trust. With a trusted brand name and reputation, franchises have an advantage over independent businesses who are often less known to the customer. Homeowners are more likely to have trust in a known brand name to come into their homes than they are an unknown brand.

According to Statista reports, revenue in the household cleaners segment in Canada is expected to grow in 2023 by 6.8% to US$870 million in 2023.

In addition to traditional home cleaning, specialized areas of residential cleaning franchises include HVAC maintenance, window cleaning, and carpet cleaning.

Restoration Cleaning

Many people don’t usually think of restoration businesses when they think of cleaning, but restoration franchises take on the difficult task of cleaning and restoring properties after a disaster such as a fire, weather damage, or mold.

These franchises are more than just a business. Restoration franchises typically come into a home or business after great loss. They are a way to help the people affected by disaster recover from their loss. Restoration franchises not only provide cleaning services but begin the process of their customers regaining stability and peace of mind.

Restoration Cleaning Franchises
Restoration Cleaning Franchises

Other Cleaning Services

Junk removal, dry-cleaning and laundry services, waste management, and hygiene services are other types of cleaning services franchises may offer or specialize in.

Junk removal services allow clients to dispose of and recycle large items such as refrigerators and washing machines. These franchises work well when combined with moving franchises as many people need to clean out their belongings when moving residencies.

Laundry franchises can include laundromats, coin laundry businesses, dry-cleaning businesses, and home laundry pick-up services, as well as tailoring and alteration services. Franchises in this field can also provide services to commercial clients such as hospitals, hotels, restaurants, and nonprofit organizations.

Sometimes put under the umbrella of restoration cleaning, waste management and hygiene services franchises cover a wide variety of businesses that specialize in things like medical waste disposal, recycling, and even crime scene or hoarding clean up. These franchises can help with decontaminating scenes involving blood and infectious diseases as well.

Increased awareness of the benefits of consistent disinfection have also led to increased demand of hygienic cleaning services in the wake of the COVID-19 pandemic.

Green Cleaning

Environmentally friendly practices have emerged as a leading trend in the Canadian franchise industry, and the cleaning sector is no exception. Canadian consumers are more and more concerned about the impact cleaning solutions have on the environment as well as their health.

Green cleaning methods help to reduce pollution and save limited resources. Harsh chemicals used in many cleaning products have also been linked to health risks, such as skin irritation and asthma. When cleaning franchises adopt green cleaning habits, they work toward healthier clients as well as a healthier environment.

There is an abundance of options for effective green cleaning. Franchise businesses can employ the use of low-phosphate detergents and scrubs as well as recycled paper products. Some cleaning franchises may choose to enhance their recycling programs or focus on their water usage.

Opening a Cleaning Franchise

The cleaning industry is an attractive sector to entrepreneurs looking to take the plunge into business ownership. Before investing in a franchise, be sure to review the Franchise Disclosure Document (FDD) of the franchise and take a close look at all the provisions and fees related to the investment. (Note: These provinces are the provinces that require an FDD).

Top Traits of a Successful Cleaning Franchise Owner

  • Good Communicator – Entrepreneurs who enjoy meeting new people and building relationships will do well with a cleaning franchise. Owning a cleaning franchise means managing employees and striving to meet the client’s cleaning needs.
  • Trustworthy – Homeowners and business owners allow cleaning franchises into their personal spaces. This requires a great deal of trust and putting customers at ease. Cleaning franchises treat clients’ homes and businesses as if they were their own.
  • Organized – Business owners have a lot of responsibility and need to remain organized. This includes being able to manage employees, process payments, handle scheduling, and assist in other areas of running the business.

Initial Investment

Opening costs for a cleaning franchise depend on a multitude of factors. For a single unit cleaning franchise in Canada, the typical investment range falls between $50,000 and $75,000, though the price of a franchise can be influenced by the unique business system, business requirements, the size of the territory, and more.

Because cleaning franchises are mobile businesses, many do not require commercial office space and allow the franchisee to run the business from home. Vehicle purchase or lease also tends to be the largest component of a cleaning franchise initial investment for this reason as well.

Ongoing Fees

Throughout the length of the agreement there are costs for being a part of the franchisor’s business system.

These costs include items such as royalty fees, charges for technical support, and continued marketing costs. The most common is the royalty fee. Examples of how royalties are collected are provided below for each sample franchise. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support.

In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees. Additional training and support may also require their own fees. Prior to investing, prospective franchisees should do their research and carefully review a franchisor’s FDD for more detailed information on all systems, procedures, and costs.

SUMMARY

Nowadays, it’s not just businesses outsourcing their cleaning to businesses such as cleaning franchises. The desire of individuals to outsource household chores to save more time for doing what they love, along with an increase in disposable income, is also contributing to the cleaning industry’s growth. If you want a franchise that will allow you to be based from home in an area with consistent demand, then a cleaning franchise may be the right fit for you.

Canadians are willing to spend more for the convenience cleaning franchises provide, and they trust established brands enough to welcome them into their homes and offices.

If a cleaning franchise sounds like the perfect job for you, please see our cleaning franchise opportunities here.

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