According to the Construction and Property Services Industry Skills Council’s 2015-16 Environmental Scan, demand for cleaning services is driven to a large extent by trends in commercial construction activity and outsourcing cleaning services by governments and businesses which are looking for operational cost efficiencies.
Franchised brands are on the incline, but the number of foreign operators in Australia will increase competition for larger cleaning contracts, and lead to some reduction in profit margins for major operators in Australia.
Environmentally-friendly chemical products have also made significant impact on this market, although this is adopted unevenly across the industry.
The commercial cleaning market is expected to generate revenue of $8.5 bn in 2016-17, up 1.9 percent for the year, according to IBISWorld. Industry revenue is expected to climb by an annualised 2.6 percent over the five years through 2016-17. It is forecast to continue growing over the next five years, with revenue rising at an annualised 2.2 percent to reach $9.5 bn in 2021-22.
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AMC Cleaning
AMC Cleaning, a professional office and commercial cleaning franchise, was established in 1988.
“What sets us apart is our innovation with technology,” says Kristie Coade, chief operating officer.
She highlights the importance of cleaning materials provided within the initial investment which includes required equipment and a chemical package valued in the $2,000 mark.
Coade says franchisees are encouraged to invest in this equipment, and if they choose to upgrade, AMC has brand power to get franchisees the better price.
Franchisees hold a triple certification, which complies with International Organisation for Standardisation requirements in environmental management, quality management and occupational health and safety management systems.
And the model is suitable for metro or regional sites.
“AMC’s footprint is far and wide all over Australia and New Zealand,” says Coade.
“We don’t have territories, we never have. We don’t believe in boundaries.”
Leads are a two pronged approach from branch offices across Australian and New Zealand which include telemarketing and business development teams which are designed to generate leads for franchisees. Franchisees are also encouraged to source leads.
The initial investment of an AMC franchise is $15,000 + GST inclusive of the starter pack of equipment and product, two week training, access to accounting system, uniforms, business cards, and on-going support. Term duration is 10 years with an option to renew.
Coade’s advice to potential buyers looking for a franchise is the find a business model with the right match.
“You have to make sure it’s the right fit.Make sure there is a reason you want to be in the cleaning game.”