Making a ‘Clean Sweep’ in franchising despite the downturn
Jani-King Franchisees are growing their businesses and increasing profits while many other business owners are stuck in reverse.
That’s the word from Mark Gosling, General Manager of Jani-King Australasia, who believes Jani-King Franchisees are in a unique position to buck the current economic trend and really ‘clean up.
’“Discretionary spending may be down across the board but clean offices, hotels and schools are not luxuries – they are necessities,” he said. “Hygiene in public places is paramount and says so much, without saying a word.
“This means Jani-King Franchisees are able to continue to increase their profitability despite the economic climate.
“Some franchises sell products or services which might perform well during boom times but commercial cleaning is by nature almost totally recession proof.”
The resilience of the Jani-King brand in tough times has contributed to the franchise maintaining its ranking as ‘The World’s Number One Commercial Cleaning Franchise’ in the respected Entrepreneur Magazine for an unprecedented 22 consecutive years.Two couples who have experienced such success with Jani-King are Ian and Agnes Coventry of Melbourne and Sydney’s Gerry and Mylene Castro.The Conventrys went into business as Jani-King Franchisees in 2002 and started from the ground up with just a few small corporate office clients which they cleaned at night.
Ian, 58, and Agnes, 54, went into business as Jani-King Franchisees in 2002 and started from the ground up with just a few small corporate office clients which they cleaned at night.
After working hard to impress on the initial contracts, it wasn’t long before their Jani-King Regional Office offered them the opportunity to service the six-floor Hilton Melbourne Airport Hotel. The Coventrys now clean the entire hotel with 50 staff working 365 days a year, making sure the hotel with its 276 rooms, gyms, restaurants and conference centres is always spotless.Ian said he and Agnes had increased their annual business turnover from $250,000 per year to over $1M through strong performances on early accounts, which led to Jani-King offering them larger clients culminating with the hotel. “The Hilton Melbourne Airport Hotel business has grown 25 per cent since it opened,” he said. “The hotel is now well established and is the only one of its kind in Australia that is such a short walk from a major airport.”“Cleaning the hotel is a demanding and important job and we’re proud of the work we do here. The hotel’s management is equally happy with us so we’re hopeful of retaining this account for years to come.”Sydney cleaning super-couple Gerry and Mylene Castro service the largest single tenant office complex in the Southern Hemisphere – the “Yes” Optus Headquarters at Macquarie Park.The couple also started out small with just a few contracts and in 2001 their monthly turnover was just $3,000. However, by 2005 Gerry and Mylene had grown their income to $28,000 per month, adding more contracts through hard work and a strong customer focus.Since taking on the Optus account in July 2007 Gerry, 45 and Mylene, 37, have increased their franchise turnover by 400 per cent and now employ 52 staff to clean five six-storey buildings in the complex with an annual turnover of $1.6 million.
“We have staff working from 7am to 10pm. doing everything from cleaning the carpets and windows to delivering the milk,” Gerry said. “We also clean more than 900 toilet cubicles, three restaurants and a pub.”
“It’s a seven-day-a-week job to ensure the property is clean for the more than 6,000 employees working at the complex. The work is varied and challenging but Jani-King’s support and administrative assistance has helped us to run the business with confidence. Jani-King Australasia turns over more than $80 million per annum with more than 1,200 franchisees running their own successful businesses throughout Australia and New Zealand. Franchises start from as little as $13,700 ex GST. To learn more about owning your own business with Jani-King visit www.janiking.com.au or www.janiking.co.nz.
To read more of this article grab yourself a copy of the November/December 09 issue of Business Franchise Magazine, on sale now at all good newsagencies.
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How to Choose Your Franchise
Spotlight On Health & Fitness Franchises
Getting Your Bank Finance
Tips from Boost Founder
The Latest Franchise News
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