Vanguard Cleaning Systems is renowned for its commercial cleaning services for both residential and commercial buildings, and it’s considered one of the 10 best janitorial franchises to own. If you’re looking to add a lucrative franchise to your portfolio, Vanguard Cleaning Systems could be a great opportunity for you.
In this article, you’ll find detailed information about Vanguard Cleaning Systems, including profitability, fees, costs, eligibility, and more. Let’s dive in!
About Vanguard Cleaning Systems
Founded in 1984, Vanguard Cleaning Systems is a commercial cleaning service. They offer cleaning services in various commercial locations such as car dealerships, commercial offices, gyms and fitness centers, schools, warehouses, and industrial spaces. Vanguard also specializes in green cleaning.
Vanguard Cleaning Systems provides two types of franchise opportunities: the Master Franchise and the Janitorial franchise. Janitorial franchises operate under the Master franchise, and the role of the Master franchise is to recruit and support Janitorial franchisees. In turn, Janitorial franchisees are responsible for providing service to customers.
Currently, Vanguard has 50 Master franchises and 3000 Janitorial franchises. They offer a training program and support for both types, but financing options are not available for any franchisees.
Vanguard Cleaning Systems Franchise Model
| Cost or Fee | Amount or Percentage |
|---|---|
| Initial Investment | $5,500 to $37,100 |
| Franchise-Fee | $5,000 for a Janitorial Business Franchise and $100,000 to $350,000 for a Master Franchise |
| Liquidity | $7,000 – $45,000 |
| Royalty-Fee | 11.5% |
| Area Requirement | N/A |
| Total Outlet | 3000 |
Requirement Of Vanguard Cleaning Systems Franchise
The Vanguard Cleaning Systems franchise offers two different types of opportunities: the Janitorial franchise and the Master franchise. Both come with their own unique requirements.
For the Janitorial franchise, you simply need to make an investment. No prior experience or specific skills are required.
For the Master franchise, the requirements are more extensive, including:
- Minimum liquidity of $200,000
- Experience in management and sales
- Living in a metropolitan area
- Possessing leadership qualities
- Ability to work with a team
These requirements ensure that the Master franchise owner has the necessary resources and abilities to effectively recruit and support Janitorial franchisees.
Training Of Vanguard Cleaning Systems
Vanguard Cleaning Systems offers an in-depth training program to all new franchises. The location of the training program may vary, including regional offices or headquarters.
For Master Cleaning franchisees, there are tools provided such as state-of-the-art software, marketing materials, and on-site assistance.
For Janitorial Cleaning franchisees, the training includes on-the-job and classroom instruction, usually lasting 24-48 hours.
Vanguard Cleaning Systems Franchise Revenue & Profit
Though specific figures are not disclosed, based on the industry standard, the profit margin for janitorial franchises with Vanguard lies between 20% – 25%.
This means for every $100,000 in sales, franchise owners make $20,000-$25,000 in profit. The final profit depends on the total revenue generated.
This is how we calculated the profit of Vanguard Cleaning Systems franchise:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 100000.00 |
| Rent | 10.00% | (10000.00) |
| Insurance | 5.00% | (5000.00) |
| Salaries | 20.00% | (20000.00) |
| Franchise Royalty Fees | 5.00% | (5000.00) |
| Utilities | 2.00% | (2000.00) |
| Cost of Goods Sold (COGS) | 25.00% | (25000.00) |
| Labor (Variable) | 13.00% | (13000.00) |
| Total (Expenses) | 80.00% | (80000.00) |
| Net Profit | 20.00% | 20000.00 |
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.
Advantages of Vanguard Cleaning Systems Franchise
Vanguard Cleaning Systems offers numerous benefits, such as:
- Long Running experience
- Interactive sessions, online materials, and hands-on education
- Support from the Master Regional franchisee in your location
- Green cleaning techniques
- High profitability
- Low-cost investment
- Diverse service opportunities
Failure Rate Of Vanguard Cleaning System
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 2757 | 2664 | -93 |
| 2021 | 2664 | 2512 | -152 |
| 2022 | 2512 | 2317 | -195 |
For the Franchised outlets:
- In 2020, the failure rate was (93)/2,757×100≈3.41%
- In 2021, the failure rate was (152)/2,664×100≈5.71%
- In 2022, the failure rate was (195)/2,512×100≈7.76%
According to the above-mentioned data, we can see that the franchised outlets for Vanguard Cleaning System declined from 2020 to 2022, showing a failure rate between 3.41% and 7.76%.
Payback Period Of Vanguard Cleaning System
With a total investment of $37,100 and the yearly profit of $20,000 we can calculate the pay back period of Vanguard Cleaning System franchise.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $37,100 / $20,000 = 1.8 years
Based on these figures, it will take approximately 2 years to pay back the initial investment for Vanguard Cleaning System. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Term and Renewal of the Agreement
The initial term for a Vanguard Cleaning Systems franchise is 5 years. After this period, a consecutive 5-year term is available if all requirements are met.
Details about the renewal process and the Master Cleaning franchise term should be referred to in the Franchise Disclosure Document for a comprehensive understanding.
Aspiring entrepreneurs in the cleaning franchise realm have choices like OpenWorks, Ductz Franchise, PuroClean, Stanley Steemer, and Servepro to consider.
Vanguard Cleaning Systems Comparison
| Company | Vanguard Cleaning Systems | Jan-Pro |
|---|---|---|
| Founded In | 1984 | 1991 |
| Initial Investment | $5,500 to $37,100 | $50,000-$150,000 |
| Franchise-Fee | $5,000 | $2,520-$60,000 |
| Liquidity | $7,000 – $45,000 | $50,000 |
| Total Outlet | 3000 | 10,475 |
| Annual Revenue | $296 Million | $587 million |
Frequently Asked Question
How many Vanguard Cleaning Systems franchises are there?
Vanguard Cleaning Systems has more than 3000 units across the U.S.
Does the Vanguard Cleaning Systems franchise offer finance?
No, Vanguard Cleaning Systems franchisees never offer third-party finance.
Is Vanguard Cleaning Systems a franchise?
The Vanguard cleaning system offers franchise opportunities to operate independent commercial cleaning businesses.
How much does a Vanguard Cleaning Systems franchise cost?
Starting a Vanguard Cleaning Systems franchise requires an initial investment of $5,500 to $37,100, with a franchise fee of $5,000.
Who is the Owner of Vanguard Cleaning Systems?
The owner of Vanguard Cleaning Systems is Walter C. Rutledge, Jr., who founded the company in 1984. Rutledge is an entrepreneur and business executive with extensive experience in franchising, commercial cleaning services, sales, marketing, management, and operations.
Where is Vanguard Cleaning System headqaurtered?
The headquarters of Vanguard Cleaning System is in San Mateo, California.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.