Cleaning Franchise 2020-12-03

Why Professional Cleaning Services is a Not-to-Miss Business Opportunity

As the demand for deep-cleaning and sanitization services spiked in India overnight at an unprecedented rate, learn what’s grabbing investors’ attention and why professional cleaning services will continue to be a highly sought-after business segment going forward

By Assistant Editor
Why Professional Cleaning Services is a Not-to-Miss Business Opportunity

With the government offering further relaxation as part of its ‘Unlock’ measures to jump-start the economy, Indian companies are making sure that enhanced safety and sanitization protocols are maintained at their offices as more employees return to work amid rising cases of Covid-19. Household consumers aren’t far behind with their demand for professional cleaning services including deep cleaning and fumigation to maintain hygiene and stay away from any contamination.

Cleaning services include a wide range of services including janitor services, deep cleaning, disinfection and fumigation, window cleaning, floor cleaning, carpet, and upholstery cleaning, which are used by residential and commercial customers.

Considering the Covid-19 transmission rate and the role that frequently touched surfaces played in spreading the virus, the demand for deep-cleaning and sanitization services spiked in India overnight at an unprecedented rate from January-end itself.

The Commercial Push

Organizations and industrial units are doubling down on hygiene for employee safety, in turn driving a surge in business for on-demand service providers and facility management companies.

As the mandated lockdowns were eased, businesses from restaurants to office buildings to airlines went above and beyond to show customers that they’re keeping workers and guests as safe as possible.

Experts say that this trend has enabled a big surge in spending on cleaning services—in fact, the cleaning boom has already arrived. “Commercial cleaning is a mature industry. But after the Covid-19 pandemic, businesses are witnessing a secular tailwind to commercial cleaning. Everyone from governments to corporates to individuals has a heightened focus on hygiene,” shares Arunabh Sinha, Founder, UClean, and Master Franchise – India for Chem-Dry.

He further reveals that besides retail and corporate businesses that continually utilize cleaning services, high demand was observed from schools and hotels. Many of the renowned schools pressed for cleanliness and hygiene certifications from Chem-Dry to instill confidence among the parents to start sending their kids to schools. In fact, most of the hotels were ready to pay a premium for proper sanitization and deep cleaning services to boost confidence among the travelers.

“The trickier part is around the frequency of cleaning. If you clean once a day in a highly trafficked area, that’s not enough. High-touch areas like doorknobs and light switches need particular attention and frequent cleaning,” adds Sinha.

Domestic demand

While the majority of the demand for professional cleaning comes from commercial customers, domestic consumers are not far behind with their concerns around hygiene.

Discerning consumers are demanding sanitization services frequently due to rising Covid-19 cases. In addition, surface cleaning and deep cleaning services are in demand from people who are concerned about maintaining hygiene and family health.  

Besides the Covid-19 pandemic, professional cleaning services are gaining popularity owing to factors such as growth in construction activities, increasing disposable income, and growth in the number of working women.

Franchise Boom

While the pandemic led to the mushrooming of numerous new players claiming expertise in sanitization and deep cleaning services, the discerning customers always had a preference for players like Chem-Dry, Saniservice, and HiCare, with international presence and market credibility. “A large number of local players cropped up during the last 9 months claiming their expertise in cleaning services. However, serious businesses preferred the recognized players with high standards of hygiene, processes, and handling protocols,” informs Sinha.

Led by the high demand from retail outlets, hotels, and educational institutions, Chem-Dry witnessed 10-15 percent month-on-month growth in its revenues from surface cleaning and sanitization services during the last 6 months.

Over the last six months, UClean has appointed a master franchisee for the entire North-East as well as five unit franchisees in the north and south regions for its Chem-Dry franchise. The company is targeting to add 15 more operational franchise partners by the end of FY2020-21.

Saniservice also has aggressive expansion plans by targeting cities including Delhi NCR, Kolkata, Mumbai, Pune, Hyderabad, Bengaluru, and Chennai. The company offers protected franchise territory with a population of a minimum of 6 lakh households. It offers area and unit franchises where the initial office set-up would require 600-2000 sq. feet area in a prime location. The initial investment would be around Rs 1-1.25 crore, which includes trained technicians from its own training facility in India. Franchisees will have access to professional equipment and industry products at negotiated wholesale pricing.

“We are looking to partner with organizations providing 5-star service and would like to offer an additional line of services to their established client portfolio. Saniservice offers an exceptional opportunity for companies to invest in world-class sanitation expertise that touches lives far beyond the home and office,” shares Francois Larsen, Founder and CEO, Saniservice.

Brand

Initial Investment

Franchise Fee/Security Deposit

Royalty Fee

Area Required

Break-even Period

Chem-Dry

Rs 16-20 lakh

Rs 5 lakh

10%

Nil

20 months

Saniservice

Rs 1-1.25 crore

Rs 35 lakh

6%

600-2000 sq ft

24-30 months

 

The New Normal

Companies and experts anticipate that heightened cleaning standards will be in place for the long haul. “While the boom for professional cleaning services has already arrived, I think there’s no question that a permanent shift will happen where we will see continued demand,” says Sinha.

Hence, professional cleaning services will continue to be a highly sought-after business segment going forward. And this would certainly attract a high amount of business investment, specifically in the franchise model.

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