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Leading Provider of Specialized Cleaning Services to the Hospitality Industry

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.

1. How did you enter the franchise business?

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.

2. Where and how did the idea of your concept come from?

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.

3. What inspired the brand name?

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.

4. What is the story behind the brand’s logo?

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.

 

5.What makes your brand different from your competitors?

We are very focused, leading to many advantages:

  • We know our customers very well so we have developed services and processes targeting them using our equipment, chemicals and methods that work very well for our customers – NOTE THAT THE SERVICES WE PROVIDE ARE DEEP CLEANING WHICH CONSISTS OF THE MORE CHALLENGING, HIGH-VALUE PROJECTS AS OPPOSED TO EVERYDAY LIGHT VACUUMING, DUSTING AND MOPPING;
  • We are not known to the average person (which we like), yet we are very well known by our target customers – we have developed a terrific reputation with strong relationships so we are the preferred vendor partner of many of the largest international brands including Marriott, Hilton, IHG, Radisson, Hyatt, Best Western and more;
  • We have developed so many services that we are a “one-stop” solution for our customers where we can address almost all their cleaning needs;
  • Our quality is best in class;
  • We work very closely with our franchisees to help them start and then grow a successful business – our assistance covers operations, sales, and more.

6. What are the essential qualities that you look for in a franchisee?

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.

7. How long does it take, on average, for your franchisee to realize their investment?

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.

8. What was the major challenge you faced in your career, and how did you overcome it?

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.

8.1. What is your best achievement?

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.

9. How does your business day start?

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.

10. What was your best moment throughout your franchise career?

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.

11. Where do you see your brand in the next 5 years?

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).

12. Any tip for the reader who wants to be in the franchisee business?

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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