Carpets are part of every household, whether in the United States or other parts of the world. Stanley Steemer is one of the famous and old-timer cleaning companies. They are an active franchise, offering franchises in the United States to those interested.
But is Stanley Steemer a good franchise to own? In this article, we will go through Stanley Steemer, its franchise system, costs, expected profit, and all other details to help you with your decision.
About Stanley Steemer and Stanley Steemer History
Stanley Steemer originally started as a carpet cleaning company in 1947 by Jack Bates.
Over time, the company has grown from a $2,300 home-based carpet cleaning company to a full-scale cleaning company offering services not just for carpets but also for upholstery, tiles, hardwood, air ducts, and water restoration.
Now, they are a massive network of over 270 stores, most of which are franchise-owned.
The company has been offering franchising since 1972, and they have a solid and quality franchise system that helps you to grow from day one.
When you own a Stanley Steemer franchise, you have a brand reputation of 70 years with extensive support behind you.
Stanley Steemer Franchise Model Table
How Much Does it Cost to Open a Stanley Steemer Franchise?
The total expected cost to open a Stanley Steemer is between $139,210 and $410,195. This includes the franchise fee, which varies between $20,000 and $100,000.
Other costs included in the initial investment are all the expected startup costs, such as equipment, payroll, real estate, training travel, and other necessities.
This number originates from the company’s franchise disclosure document. It is finalized by the average spending of existing franchisees and up-to-date financial expectations.
Stanley Steemer Franchise Requirements
There are no tough financial or personal requirements. You do not need to have certain liquidity or net worth. You just need to be able to cover the costs of opening the store.
Having a personal background in the industry or as a manager is a plus, but it is not a must. Their training program helps you to understand the business and how to manage a store.
Stanely Steemer Profit & Revenue
The company had a total revenue of $281 million in the fiscal year 2022. In the same year, net profit for the company was $18.2 million. This represents a 6.47% profit margin.
Across the United States, the average gross annual sales for stores that were open for 12 months in 2022 was $1.7 million.
69 franchised stores achieved or exceeded this average number out of 210 stores. The lowest overall sales were $18,374, and the highest was $12.6 million for 2022.
Stanely Steemer Franchise Owner Salary
The franchise disclosure document does not provide information on the net profits per store. However, if we take the company-wide profit margin of 6.47% as a base, we can say that the average salary is $109,990 annually.
This is how we calculated this amount:
|Financial Overview||Percentage of Revenue||Amount ($)|
|Individual Franchise Annual Revenue||100%||1700000.00|
|Franchise Royalty Fees||5.85%||(99375.63)|
|Cost of Goods Sold (COGS)||29.23%||(496878.13)|
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Payback Period Of Stanely Steemer
With a midpoint investment of $274,702 and an estimated 6.47% profit margin, the yearly profit would be $109,990.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Midpoint Investment / Yearly Profit = $274,702 / $109,990= 2.49 years
Based on our estimation, the payback period for Stanely Steemer franchise could be between 2 to 5 years.
Training and Support
There is an initial training program for all Stanley Steemer franchisees, which lasts two weeks and is held in the corporate office headquarters. In total, you receive 32 hours of on-the-job training in these two weeks. There might be additional training as required through webinars, online courses, and other methods.
Stanley Steemer also provides continuous support before and after opening your store. They help with the establishment of the physical store and give counseling before opening. For post-opening, they help with advertising materials and make sure all products are available for you as spare parts as needed.
Terms of Agreement and Renewal
The initial franchise agreement with Stanley Steemer is for ten years. After the initial ten years are over, a renewal agreement is possible. The renewal is for an unlimited number of additional 10 years. The renewal fee is $10,000. For renewal to be possible, Stanley Steemer must approve your renewal request, and both sides need to be in good standing.
Obligations and Restrictions
The franchisee must use the national toll-free vanity number provided by Stanley Steemer in the operation of the store. The franchisee is restricted from sharing any know-how or technical information about Stanley Steemer and its systems or methods of operation.
All equipment, products, and supplies that are used in the franchised store must meet the company’s specifications. Also, the franchisee can only offer products and services that are authorized by Stanley Steemer directly. You also need to present these products and services according to the specifications detailed in the agreement.
Stanley Steemer offers both direct and indirect financial assistance. They have an internal financing procedure to cover the franchise fee and other startup costs. Indirect financial assistance might cover the same, plus extra equipment and inventory.
Stanley Steemer Comparison
|Name||Franchise Fee||Royalty Fee||Initial Investment|
Stanley Steemer is a company of 70 years and with 50 years of franchising experience. They have an established system to help their franchisees achieve success as fast as possible.
You also get a brand reputation that is generally not matchable by their competitors. Its initial investment and franchise fee are slightly more expensive than the alternatives, but the expected revenue makes up for it.
Overall, this franchise seems like a decent opportunity and a great way to get started as an entrepreneur. If you have the finances and the experience, you should strongly consider Stanley Steemer.
How much does it cost to get a Stanley Steemer franchise?
The total average cost to open a Stanley Steemer is between $139,210 and $410,195. It includes the franchise fee and all other related startup costs.
How many Stanley Steemer franchises are there?
There are a total of 271 Stanley Steemer outlets, and around 220 of them are franchised.
What is the revenue of Stanley Steemer?
Stanley Steemer had $281 million in revenue in the 2022 fiscal year.