February 01, 2016
Kleenit’s “Multi-Income Stream” Business Is on the Move
2016 has kicked off, and WA-based Kleenit cleaning franchise is expanding nationally, particularly on the eastern seaboard.
With 46 franchises nationally and 27 in WA, Director Mark Wood said, “We are ‘seriously’ looking for franchisees in Melbourne and Sydney. The business has grown so much.
We are getting more enquiries than they (franchisees) can handle.” After acquiring the Graffiti Removal Services (GRS) business in September 2014, the company has grown from strength to strength, but as Wood emphasised, “The guys can only do what they can do in the day”.
A good problem to have
Having more customers than franchisees is a “good problem” to have and showcases the demand for this service, which covers outdoors, interior floors, and car detailing. It is an ideal offering for people looking for freedom in owning their own business, especially those who love the outdoor life.
For prospective franchisees in Victoria, there is “fairly limited coverage”, and Kleenit is looking to enhance their presence in Melbourne. Territories exist from Williamstown to Richmond, and in NSW, the “tyranny of distance is huge” and currently five franchisees are in operation.
“The Bondi franchisee is actually looking after Campbelltown. It’s one hour each way in peak traffic”. As contract work and repeat business are major staples for Kleenit, the NSW market is ripe for franchisees who want to hit the ground running.
$75k income guarantee
Wood said, to take away the “fear and trepidation associated with taking on a new business”, there is a $75,000 income guarantee in the first year. This was introduced during the acquisition of GRS and helped alleviate the two questions he is asked the most: “How much will I earn?” and “How much does it cost?”
To answer the first question, “Everyone so far has smashed the $75K mark.” With council contracts “easy to come by” and a large portfolio of government-, commercial-, and industrial-based work, Kleenit needs “sensational people. We don’t want them to just take clients or do one job. We want to form a relationship and have successful people.”
$110k startup cost
The start-up costs are approximately $110K, which includes franchise fee, equipment, vehicle (franchisees need a white tray back), and stock. Different income streams exist, from high-pressure cleaning and graffiti removal to protective coating and sealing services.
Typically, franchisees will find a service and specialise or will offer multiple services. He explained, “If graffiti is quiet one day or if the weather is bad, then they can do floor coverings. We are not limited at all. We have so much more to offer and people can make a really heathy income.”