Sears Carpet & Upholstery Care
One of the most recognized brands in the world, Sears has proven to be a strong and stable organization with annual revenue of more than $40 billion. The Sears brand has come to represent quality, integrity, convenience and consumer confidence. Sears franchisees are trained and equipped to exceed all customer expectations, and every job is complete with the Sears world famous customer promise of Satisfaction Guaranteed.
The carpet cleaning franchise consists of the following services: Carpet Cleaning, Upholstery Cleaning, Tile & Grout Cleaning/Sealing/Coloring, and Water Extraction. All of these services are performed using Sears’s specially formulated cleaning solutions with custom designed van mounted cleaning equipment. Their two-step cleaning process is recommended by America’s largest carpet manufacturer and has earned the Platinum Seal of Approval from the Carpet & Rug Institute for superior dirt removal from carpet.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
145 |
140 |
142 |
| | % Change | -- |
-3.4% |
1.4% |
| | Company-Owned |
3 |
3 |
6 |
| | % Change | -- |
0.0% |
100.0% |
| | Total |
148 |
143 |
148 |
| | % Change | -- |
-3.4% |
3.5% |
| | Franchised as % of Total |
98.0% |
97.9% |
96.0% |
Investment Required
The fee for a Sears Carpet & Upholstery Care franchise is usually between $4,860 and $94,500; it is determined based on the number of single family dwelling units in a territory. For most geographical areas, Sears Carpet & Upholstery Care has a fee of $0.18 per single family dwelling unit, but some areas around New York instead have a $3.75 fee per person. Sears offers franchisees financing options as well as discounts for Armed Forces Veterans.
Sears Carpet & Upholstery Care provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item |
| Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$4,860 |
$94,500 |
| |
Months' Office Rent |
$750 |
$3,500 |
| |
Security Deposit |
$500 |
$3,500 |
| |
Service Vehicle(s), Carpet Cleaning Unit(s) and Accessories |
$850 |
$2,550 |
| |
Office Equipment |
$1,000 |
$2,500 |
| |
Opening Inventory, Cleaning Solutions and Supplies |
$2,000 |
$5,000 |
| |
Opening Advertising and Signs |
$5,000 |
$25,000 |
| |
Miscellaneous Opening Costs |
$1,000 |
$5,000 |
| |
Additional Funds (3 Months) |
$10,000 |
$50,000 |
| |
Total Initial Investment |
$25,960 |
$191,550 |
Ongoing Expenses
Sears Carpet & Upholstery Care franchisees pay a monthly royalty fee of 8% of net revenue and national marketing fund contribution of up to 2% of net revenue. Additional fees include a software support fee of up to $250 per month and a ServiceLive transaction fee.
What You Get—Training and Support
Sears training begins with the New Franchise Owners School, covering virtually every aspect of sales development, cost control, record keeping, computerized systems and operational management. Training is also provided for Customer Service Representatives and Cleaning Technicians. Franchisees are provided with a comprehensive operations manual, and ongoing support includes general marketing assistance, information technology support, and access to a network of franchisees to share best practices.
Franchisees can take advantage of Sears discounts on all supplies and equipment, as well as marketing materials and advertising rates. Sears provides marketing materials which may include TV and radio commercials, print ads, brochures and direct mail. Sears also provides a customer database, a 1-800-4-MY-HOME phone line, website, and Yellow Pages assistance.
Territory
Sears Carpet & Upholstery Care grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Top 100 Franchises publication.
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