Independent franchisee satisfaction reviews of today's top franchise opportunities
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Jim - Thanks for your franchise question. I am familiar with the PuroClean franchise system... in fact, I know their CEO and several of their senior executives. That said, we have not had the opportunity to survey their franchisees, so I can't really comment on the experiences and satisfaction level of their franchise owners.
I do believe that they operate in a reputable, professional manner and their industry appears to be somewhat recession-resistant (although NOT "recession-proof" like their website claims). As for specifics, when any franchise company "claims that their return on investment is fantastic", I get nervous! As you know, there are no free lunches and starting any business (franchise or non-franchise) takes a lot of blood, sweat and tears. My response is simply "Show me the money!" and back it up with an Item 19 Financial Performance Representation that is backed up broadly by the actual performance of many franchisees!
Have you received a copy of the PuroClean Franchise Disclosure Document (FDD)? If so, Item 19 will give you some insights into your potential financial performance and ROI (although every Item 19 is stamped with "Individual results will vary... Your performance and success is not guaranteed... yadda, yadda, yadda). If you email me a copy, I'd be happy to take a quick look for you.
As for Brooklyn, I would think that it would be a great market for this type of business but only you can do the research to find out what competitors are already in operation. I know a lot of this type of business flows through insurance companies and referrals, but before I invested a dime, I would go out and "pitch" 10-20 prospective clients to see just how hard it is to sign up a new client. Also, spend a week or at least a few days working/volunteering with an existing Puro-Clean franchisee in a similar market. You may find out fast that you really love the business or that you hate the business!
As for the investment, only you can make that decision based on the level of training, support and other services you will receive. Obviously, they are an established brand with what appears to be a successful business model. On the flip side, are their current franchisees really profitable and making the kind of money they expected to be making? When you decide to sell your business, what is the resale value? This can only be found out by talking to a bunch of their franchise owners and former franchisees (all listed for you in their FDD).
Also, their franchise fee of $40K seems a bit high to me. Many franchise companies only charge a franchise fee of $15,000 - $25,000. I would ask them why it's so high and what exactly do you get for this investment. Unfortunately, if you're hooked on opening a PuroClean franchise, this is their price to "play the game". That said, EVERYTHING is negotiable in this current economy! Assuming you decide to move forward and they won't lower the fee, I would negotiate for a larger territory!
Hope this helps. Please let me know if you have any other questions as I'm happy to help! And please keep us posted on what you decide to do.
Happy Holidays and Happy Franchising!
Eric Stites
President and Founder
Franchise Business Review
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