Entrepreneurs are seen investing in a much newer segment -- cleaning franchise industry, solving all your cleaning issues.
Well known for providing opportunities to entrepreneurs, the franchising industry is itself a diverse universe, having numerous paths leading to success.
UClean is India's first organized chain of Laundromats focused on fostering the DIY culture. With technology at the heart of the brand, UClean also enables the time-crunched customer to avail pick-n-drop service from the comforts of his home or office. UClean is committed to working with other entrepreneurs and investors and co-build the UClean brand with them through the franchise route.
The cleaning industry can be roughly divided into several segments like residential, commercial, specialty, and laundry cleaning services. According to a report, in 2016, there were approximately 8, 75,000 cleaning businesses employing about 4 million people. The number is constantly growing since then, fighting the economic downturn moments happening in the industry.
With increasing disposable income, people feel more secure to spend opening the gates for cleaning franchisors. Hence, the strong economic activity is forecast for the next 6 years, predicting job growth and expansion of the industry by 6 percent.
Risk as an industry
According to the Bureau of Labor Statistics, a cleaning company loses up to 55 percent of their customer base every year. It is emerging as one big challenge for the franchisors, where good work goes unnoticed and a single bad work gets you in trouble.
In addition, there are small companies competing for both residential and commercial cleaning contracts. Therefore, brands need to look thoroughly at their competitor's pricing and marketing strategy, in order to attain success.
Franchisors looking to make an impact in the franchising industry can turn their way towards specialty cleaning services. It is assumed that in near future, this sector is going to expand drastically, standing firm in a local competition. Marketing, reputation, and location being the key to sustainability, this segment has a lot to offer to cleaning franchisors.
Cleaning businesses are most successful in urban locations with a higher than average level of affluence.