Cleaning services have become more significant nowadays – making this sector one of the sought-after franchise investments. Renue Systems is the leading provider of comprehensive deep cleaning services to the hospitality industry. Let us hear it from Mr. David Grossman – owner and CEO of Renue Systems, and know more about their franchise development.
We started franchising 20 years ago first with individuals we knew in the US. Once we gained some experience we sought people without direct experience looking for a new career in a unique service business. Our last stage began several years ago when we expanded internationally.
We started as a general cleaning company but learned it was very competitive. After asked to clean a hotel we discovered an untapped yet attractive niche. Ever since then we have focused heavily on developing and exploiting this specialty. We have subsequently developed some strong barriers for competitors.
Our original name was Appeal Carpet, which we subsequently changed to National Appeal when we started expanding beyond our initial Chicago location. In 2010, upon new management and ownership, we changed our name once again to Renue Systems, a name we think better represents our focus on revnewing high-end venues and doing it with our proven systems.
It was important for us to reflect the green nature of our services in that we help protect the environment as well as the health and safety of our customers, their employees, and their guests. Our logo also represents freshness and modernity, two characteristics of our company even though we are 30 years old.
We are very focused, leading to many advantages:
Importantly, no direct experience with cleaning or hotels is needed. We have strong experience teaching our many different types of people how to successfully operate a Renue franchise. What we seek is an individual(s) or company that is good with operations (they can hire and manage a small team of cleaners) but more importantly, like to build relationships with hotel managers. We help make the introductions and then encourage our franchise partners to spend much of their time discussing with hotel managers their cleaning needs and how we can help.
Payback is typically quick, especially since both the start-up cost and ongoing overhead expenses are low. Depending on how well our franchisee performs the range for our international locations is approximately 24-36 months. Note that our profit margins tend to be very attractive, even in the early days when revenue is still small.
Before purchasing and operating Renue, I worked as a consultant and in investments on Wall Street. Three times I was laid off for reasons other than my personal performance. That was very disruptive for me and my family, so I decided to have more control over my career. That gave me the idea that it was better for me to change careers and seek an interesting, successful opportunity that I could learn quickly and hopefully enjoy. I learned about Renue Systems which had a very good business but had become sleepy. By hiring good people and applying some energy, we have had some nice growth over the past ten years.
Before Renue Systems, I enjoyed helping clients grow their businesses by advising them or investing in them. It was enjoyable to see (and help even if in a small way) people succeed in fulfilling their dreams. Another highlight was when I was at university. I operated a small business which was a lot of fun. That experience – and the gratification of building a close team – was important for laying the groundwork for my desire to join Renue.
My day starts at 4:30 AM (or earlier if I am traveling) by addressing emails and reading many different sources. It is important for me to stay informed on not only Renue but a wide variety of developments and perspectives in business, news, and other events around the world. I then run for an hour.
Nothing makes my team and me happier than the success of our franchisees. We do not take this lightly. We realize that our franchisee partners are investing their money, time, and trust in us, so we work very hard to live up to and even exceed their expectations.
Our plan is twofold: 1) continue to attract high-quality franchisees in the US and even more so in selective other countries (of which the GCC/MidEast remains a high priority) and 2) continue to increase the profitability of our existing franchisee partners (by introducing more deep cleaning services and additional customers).
It is important to select the right franchisee. There are many considerations including franchisor’s track record, start-up cost, management quality, type of business (does it interest you?), start-up time (some franchises can begin operations in a few months, others take more than a year), number and types of employees needed, the happiness of the existing franchisees, the availability of a nearby territory, the size of the territory awarded, and importantly the support and commitment of the franchisor’s management. Remember that with a successful franchise company you will be going into business for yourself, but not by yourself.
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