Stanley Steemer Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$158,210 - $522,195
Franchise Fee
$20,000
Min Cash Required
$10,000
Total US Locations
267
Business Summary
Stanley Steemer operates a cleaning and restoration business that provides a range of services for indoor environments, including various types of flooring, upholstery, HVAC systems, and air ducts. Stanley Steemer businesses utilize proprietary cleaning systems, exclusive equipment, and specific cleaning methods. The services extend to water damage mitigation and restoration. Stanley Steemer also manufactures and sells its own cleaning equipment, chemicals, and products, and offers a catalog order business for these items, including through its website.
Corporate History
Stanley Steemer International, Inc., an Ohio corporation, began its cleaning business operations in 1947 as a sole proprietorship founded by Jack A. Bates. The company was incorporated in 1972 and started offering Stanley Steemer Carpet Cleaner franchises in the same year. Over time, Stanley Steemer expanded its offerings, including Stanley Steemer Air Duct Cleaning Service 'add-on' licenses from 1998 through 2020 and Stanley Steemer Carpet Sales and Installation Service licenses from 1999 through 2013. The company also manufactures and sells cleaning equipment, chemicals, and products to its franchisees and through retail outlets.
Financial Overview
Investment Range
$158,210 - $522,195
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$2,433,676
Minimum Cash Required
$10,000
Royalty %
7%
Marketing %
4%
Equipment Costs (Low)
$134,500
Equipment Costs (High)
$413,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Stanley Steemer International, Inc. has strong financial health, as indicated by its audited financial statements, which received an Unqualified Opinion from independent auditors. The auditors did not identify any conditions or events that raise substantial doubt about Stanley Steemer's ability to continue as a going concern. While Stanley Steemer provides loan advances to its affiliate, Stanley Steemer National Advertising Fund, Inc., this does not indicate financial instability for the franchisor itself, which maintains positive net income and a healthy balance sheet.
Financing Details
Stanley Steemer offers franchisees two ways to finance the initial franchise fee. Under Option A, franchisees can defer payment of a portion of the initial franchise fee over a period of 6 months to 5 years, with an agreed-upon interest rate not exceeding 5% over the prime rate of JP Morgan Chase Bank, N.A. This involves signing a promissory note. Under Option B, a portion of the initial franchise fee and estimated imputed interest can be deferred and paid through an additional monthly royalty payment of 3% of gross sales until the deferred amount is fully repaid. Stanley Steemer does not provide financing for any other obligations like vehicles or equipment, nor does it guarantee any loans obtained from third parties.
Performance Metrics
Total US Locations
267
Franchised Units
210
Corporate Units
57
Franchising Since
1972
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Stanley Steemer has no litigation that is required to be disclosed in Item 3 of the FDD. This means Stanley Steemer has not been involved in any material litigation or bankruptcy proceedings that are reportable under franchise disclosure regulations.
Bankruptcy History
Stanley Steemer has no bankruptcy information that is required to be disclosed in Item 4 of the FDD. This indicates that neither Stanley Steemer nor any of its predecessors, affiliates, or principal officers have a reportable bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Stanley Steemer franchisees must not have defaulted on their Franchise Agreement or any other agreements with Stanley Steemer, and must have fully complied with all material terms and conditions. They need to provide Stanley Steemer with written notice of their intent to renew at least 180 days before the agreement expires. Franchisees must also pay a renewal fee of $10,000, sign a general release of claims against Stanley Steemer, and sign Stanley Steemer's then-current form of franchise agreement, which may include different terms such as increased royalty fees, advertising fees, and renewal fees.
Training & Support Program
Franchisor Assistance
Before opening, Stanley Steemer assists franchisees by selling them Stanley Steemer Vehicles and Cleaning Platforms, recommending approved product brands and manufacturers, providing access to its Operations Manuals, and granting a license to use Stanley Steemer Trademarks and its System. Initial training is also provided at designated times and locations. After opening, Stanley Steemer continues to provide support by making advertising materials available (sometimes at cost), participating in media area cooperative advertising programs (if it has a company-owned branch in the area), offering spare parts for Cleaning Platforms at standard prices, and protecting Stanley Steemer Trademarks. It also provides report forms, advice, and counseling upon request. Stanley Steemer operates a National Customer Contact Center, which franchisees can voluntarily utilize for fielding customer inquiries.
Initial Training Hours
110
Training Location
Corporate offices in Dublin, Ohio or a company-owned branch, with sessions also available through webinars, online modules, online learning portals, web-based seminars, cloud-based video communications, video/audio conferencing, and live chats.
Ongoing Support
After opening, Stanley Steemer provides ongoing support to its franchisees. This includes continuing to make advertising materials available (at a cost), participating in media area cooperative advertising programs where Stanley Steemer has company-owned branches, and offering spare parts for Stanley Steemer Cleaning Platforms at standard prices. Stanley Steemer works to protect its trademarks and provides report forms as needed. It also offers advice and consultation upon reasonable request. Franchisees are required to use Stanley Steemer's proprietary software and are provided a help desk for support and error correction, though Stanley Steemer may charge for these services or discontinue them. Franchisees also get access to an intranet system for communication. Stanley Steemer has the right to require franchisees and their personnel to attend periodic supplemental or refresher training programs, which may incur tuition fees.
Franchise Requirements
Ideal Candidate Profile
Stanley Steemer seeks franchisees who, along with their other owners, officers, and managers, are committed to dedicating full-time energy and best efforts to the management and operation of their Stanley Steemer Business. Stanley Steemer strongly recommends direct and personal participation in day-to-day operations, as their experience indicates this leads to the most successful franchisees. If an owner is not actively involved, they must notify Stanley Steemer, which may then require the appointed manager to complete initial and all subsequent mandatory training programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Stanley Steemer grants franchisees an exclusive area for operation, which is defined in Exhibit A of the Franchise Agreement. This area typically consists of one or more counties. In densely populated regions, the territory may be smaller than a full county, in which case its boundaries will be delineated by specific streets or other political subdivisions.
Staffing Notes
Stanley Steemer businesses are focused on providing cleaning and restoration services using specialized equipment housed in vehicles. While Stanley Steemer does not require the franchisee to be personally involved in the daily operations, it strongly recommends that the franchisee, or the business's owners, officers, and managers, dedicate their full-time energy and best efforts to the management and operation. Experience shows that the most successful franchisees are directly and closely involved. If the franchisee is not actively involved, a manager must be appointed, who may be required to attend and successfully complete initial and any subsequent mandatory training programs. It is not necessary for this manager to hold an ownership interest in the business. Specific roles mentioned in the training programs include Manager, Customer Service Representative, and Crew Chief. All personnel providing services on behalf of the Stanley Steemer Business must wear approved uniforms, maintain a neat and clean appearance, and deliver proficient and courteous service to customers. Franchisees are fully responsible for all employment-related decisions, such as recruitment, hiring, training, compensation, scheduling, discipline, and termination of their employees.