Home Clean Heroes Franchise in 2024: Costs, Fee & FDD
Discover the opportunities and challenges of investing in Home Clean Heroes, a residential cleaning franchise with a subscription-based revenue model, community-driven initiatives, and a growing footprint. Explore its costs, earnings, and key insights to decide if it’s the right fit for you.
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Home Clean Heroes, established in 2017, is a residential cleaning franchise under the Buzz Franchise Brands umbrella. With a mission to support local first responders through its “Heroes First” initiative, the company distinguishes itself in the cleaning industry by combining quality service with community engagement.
The franchise offers comprehensive home cleaning services, including routine maintenance, deep cleaning, and move-in/move-out services. Targeting busy homeowners and families seeking reliable and professional cleaning solutions, Home Clean Heroes emphasizes customer satisfaction and trust.
As of 2024, Home Clean Heroes operates in 11 locations across seven U.S. states, with plans for further expansion. While specific daily customer numbers aren’t publicly disclosed, the franchise’s growth indicates a steadily increasing client base.
Franchisees benefit from extensive training and ongoing support, covering operations, marketing, finance, and customer service. The company provides a proven system to help new owners launch and grow their businesses effectively.
Additionally, Home Clean Heroes offers a unique opportunity to make a positive impact in local communities by supporting first responders.
Home Clean Heroes Franchise Insights
- Home Clean Heroes sets itself apart with its “Heroes First” initiative, donating a portion of every cleaning to local first responder organizations, allowing franchisees to make a meaningful difference in their communities.
- With a focus on subscription-based cleaning services, franchisees benefit from a steady, predictable income stream through recurring customer contracts.
- Home Clean Heroes boasts high customer satisfaction rates, with a focus on reliability, quality service, and trust, driving customer loyalty and repeat business.
Home Clean Heroes Franchise Key indicators
Growth YOY (%)
34%
vs industry 4%
Total U.S. Franchised Units
16
3-Year Failure Rate
28%
vs industry 13%
Sales-to-Investment ratio
1.5:1
How much does it cost to open a Home Clean Heroes franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Home Clean Heroes franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Home Clean Heroes franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Home Clean Heroes below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Set-Up Fee | $1,000 | $1,000 |
| Mailing List Fee | $500 | $750 |
| Postcard Fees | $15,050 | $15,050 |
| SEO Fees | $3,600 | $3,600 |
| Digital Marketing Fees (first 3 months) | $5,400 | $5,400 |
| Start Up Package— Equipment, Uniforms, Marketing Supplies & Office Supplies | $9,500 | $13,500 |
| National Call Center Set-Up Fee | $300 | $300 |
| National Call Center Fees | $1,725 | $2,625 |
| Vehicle & Decals | $2,650 | $32,709 |
| Initial Training | $500 | $2,000 |
| Insurances | $1,800 | $3,600 |
| Professional Fees | $0 | $1,000 |
| Licenses & Certifications | $300 | $1,500 |
| Integrated Business Management Fee | $395 | $1,185 |
| Computer, Internet Devices, Phones, Software Setup | $0 | $1,800 |
| Heroes First Charitable Contribution Program | $25 | $30 |
| Additional Funds for 3 months | $20,000 | $60,000 |
| TOTAL | $112,745 | $196,049 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Home Clean Heroes franchise, the required capital involves both the initial investment costs and a net worth requirement set by Home Clean Heroes. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $112,745 to $196,049. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Residential cleaning franchises typically require liquid assets of $50,000 to $75,000 to ensure sufficient cash flow for upfront costs and working capital. (This is an estimate based on industry norms.)
- Net Worth Franchisors in this range generally expect a minimum net worth of $150,000 to $300,000, demonstrating financial stability to support initial and ongoing operations.
How much does a Home Clean Heroes franchise owner make?
Calculating the salary of a Home Clean Heroes franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Home Clean Heroes franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Home Clean Heroes Revenue & Gross Sales
Based on most recent analysis, Home Clean Heroes franchises achieved a median gross sales of $238,002, providing a solid benchmark for franchisees evaluating potential revenue. This figure reflects the brand’s growth and performance in the residential cleaning market, which continues to see increasing demand. While this median showcases the potential for a profitable operation, prospective franchisees should consider factors like market size, competition, and operational efficiency to estimate individual earnings accurately.
Which key factors impact the average revenue performance of Home Clean Heroes franchisees?
The performance of Home Clean Heroes franchisees is influenced by a combination of internal and external factors. The growing demand for residential cleaning services, driven by busy lifestyles and heightened focus on hygiene, has likely contributed to steady sales. The franchise’s focus on customer satisfaction, combined with its strong community branding through the “Heroes First” initiative, builds loyalty and attracts repeat business. Additionally, its subscription-based revenue model ensures a predictable income stream for franchisees. Market conditions, such as regional competition and local economic factors, also play a role, but Home Clean Heroes’ comprehensive marketing and operational support helps franchisees navigate these challenges effectively.
Home Clean Heroes Franchise Operational Costs
If you were to open a Home Clean Heroes franchise, here are the key ongoing operational costs specific to running the business:
- Staffing Costs Salaries or wages for cleaning team members, including recruitment, training, and employee benefits to retain a reliable workforce.
- Cleaning Supplies and Equipment Regular replenishment of cleaning products, tools, and equipment required for professional service delivery.
- Vehicle Expenses Costs associated with maintaining branded company vehicles, including fuel, insurance, and routine maintenance for efficient service operations.
- Office Expenses Rent, utilities, and administrative costs for maintaining an office or operations hub to support scheduling, customer service, and management activities.
- Technology and Software Subscription fees for scheduling platforms, CRM tools, and other operational software to streamline business processes.
- Local Marketing and Promotions Costs for localized marketing campaigns, promotional materials, and events to attract and retain customers in your service area.
These costs vary by location and scale but are essential for maintaining a successful and efficient operation.
Home Clean Heroes Franchise Fees
When operating a Home Clean Heroes franchise, here are the relevant ongoing fees you should consider based on the provided data:
- Royalty and Service Fee Franchisees pay 6% of total revenue monthly. This fee covers the use of trademarks, operational systems, territory support, marketing materials, and other franchisor-provided resources.
- Marketing Fee A 2% fee on total revenue is payable monthly. This fee is used to support brand development, advertising campaigns, public relations, and the production of marketing materials.
- Potential Additional Fees Franchisees may incur additional costs for specialized training, optional marketing programs, or technology upgrades, depending on specific business needs and agreements.
These fees are critical for maintaining operational and marketing support while ensuring compliance with franchise standards.
Home Clean Heroes Franchise Earnings
The earnings of a Home Clean Heroes franchise owner can vary significantly based on a variety of factors including location, sales volume, operational efficiency, and cost management. With median gross sales of $238,002, the estimated annual earnings for an owner-operator are approximately $42,840.
As a subscription-based residential cleaning business, Home Clean Heroes benefits from predictable, recurring revenue, which can support consistent cash flow for franchisees.
How to Open a Home Clean Heroes Franchise
Becoming a Home Clean Heroes franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Home Clean Heroes franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application and Evaluation Complete a formal application to provide details about your professional experience and financial stability. The franchisor will review your application to ensure you meet the franchise requirements.
- Discovery Day Attend a Discovery Day at the Home Clean Heroes headquarters. This is an opportunity to meet the leadership team, gain deeper insights into the brand, and determine if the franchise aligns with your business goals.
- Franchise Agreement Upon mutual approval, sign the franchise agreement and pay the initial franchise fee to secure your territory. This officially makes you a part of the Home Clean Heroes network.
- Training Program Complete a comprehensive training program, which includes operational systems, marketing, and customer service best practices. This may involve classroom training, online modules, and hands-on learning.
- Site Selection and Setup Work with the franchisor to establish your operations base, whether a home office or leased location. Purchase equipment, supplies, and software needed for day-to-day operations.
- Pre-Opening Marketing Launch local marketing campaigns to create awareness and attract your first customers. The franchisor will provide guidance and materials for your grand opening.
- Business Launch Begin operations with ongoing support from the Home Clean Heroes team. Field representatives and corporate resources will assist you in navigating the first months of business to ensure a smooth start.
Pros & Cons
Pros
Recurring Revenue Model: The subscription-based business ensures consistent cash flow through regular customer contracts.
Community-Focused Brand: The “Heroes First” initiative builds strong customer loyalty by supporting local first responders, adding a socially responsible element to the business.
Low Startup Costs: With a total investment range of $112,745 to $196,049, it offers an affordable entry point compared to other service-based franchises.
Cons
High Failure Rate: The franchise has a 3-year failure rate of 28%, which is higher than many industry peers, indicating challenges in long-term sustainability for some franchisees.
Customer Retention Dependence: Maintaining consistent service quality is critical, as the business relies heavily on repeat customers.
Labor Management: Recruiting and retaining reliable cleaning staff may be a challenge in tight labor markets.
Market Sensitivity: The business may be affected by economic downturns or shifts in household discretionary spending.
