Contract Cleaning Franchise Cuts Fees for Credit Starved Applicants
Thursday, November 13, 2008 at 4:56PM
Leading contract cleaning franchisor Jani-King is introducing a more flexible, cheaper franchise package in response to the evaporation of credit.
The new package will offer significantly lower entry-level investment, making a £1m plus turnover business accessible to entrepreneurs of modest means.
Jani-King chairman Ian Thomas explains why Jani King felt it necessary to make their franchise package more flexible:
“The reduction in available finance from the banking community which has driven down bank lending ratios for new businesses, coupled with the downwards pressure on house prices that is reducing available equity on which to secure loans, has meant that many traditional management franchises have become unaffordable for people who still have all the right qualities to make a successful franchisee.
“Cleaning is a relatively recession-proof industry, which makes this an excellent time to invest in a contract cleaning franchise.
“We cannot let problems with bank funding prevent those people with the right skills and motivation from realising their ambition to start their own business.
“So we have moved swiftly to develop a new product which responds to the current market conditions.”
Explaining what the new franchise package entails, Thomas says:
“The new flexible franchise will suit people with a commercial background who are motivated to build a business within a proven structure, but who are not looking for the same level of guaranteed sales which our standard minimum level product offers.
“Effectively, we are giving people the chance to buy the level of guaranteed sales they can afford because we can adapt this product to suit an individual’s financial requirements.”
Franchisees buying the more flexible package will still have access to Jani-King’s training and support programmes.
Thomas is confident that Jani-King is robust enough to endure, and even prosper through, the downturn.
“The Jani-King franchise is highly attractive because it can be operated on very low overheads and is a cost-variable format.
“Historically we have always seen an upturn in demand for our franchises in times of economic pressure because of the robustness of the cleaning industry.”

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