The highly profitable Devon and Cornwall branch of Minster Cleaning Services is for sale. Since its inception in 1995, the business has grown steadily and now has an annual turnover of over £500,000.
Client retention is good and the branch has more than 100 contracts in place. The business employs around 90 staff providing services to clients across a range of business sectors including healthcare and dental practices where Minster’s specialist knowledge has proved to be invaluable.
Minster’s exceptionally large territories give enterprising franchisees virtually unlimited scope for expansion and the Devon and Cornwall franchise includes such major towns as Bodmin, Exeter, Newton Abbot, Plymouth, St. Austell, Torquay and Truro.
Minster managing director, Mike Parker says that the branch offers excellent growth opportunities for incoming franchisees: “With a low EBITDA* multiple, it represents great value for money and the investment could easily be recouped in just a few years.
“Devon has enjoyed growth of 67 per cent over the last decade compared with a UK average of 53 per cent. The area has high employment rates and is consistently named as the best place to live in the UK.”
The purchase of an established franchise gives franchisees cashflow, customers and staff from day one. It can also provide evidence of what can and has been achieved and it can show how the business is likely to perform in varying market conditions.
Most of Minster’s recent franchisees have joined by acquiring a resale and they have benefited from taking over at branches that are working well and have an experienced cleaning workforce, knowledgeable field and admin staff, and a substantial profit stream.
Recent incoming ‘resale franchisees’ have all made significant positive impacts on the Minster businesses that they bought. Since Kevin Lawley took over the Norfolk and Suffolk branch in 2011, he’s more than trebled turnover as well as scooping various accolades for his performance including the 2016 bfa HSBC Franchisee of the Year award (B2B category).
Purchasers of a resale will benefit from a highly effective marketing strategy as well as receiving help with the transition from employment to self-employment. Ongoing support also covers operational management, administration, bookkeeping and IT and professional advice in the complex fields of employment law, health and safety and environmental legislation.
Minster Cleaning Services was established in 1982 and has been a bfa Full Member since 1992. With so much experience of franchising and the commercial cleaning market, Minster gives prospective franchisees a rock-solid business model with considerable opportunities for growth. Larger branches can employ upwards of 200 people and many have achieved annual sales in excess of £1million. The top 10 branches are averaging annual sales in excess of £1.7million and annual turnover for the group is now approaching £40million.
As the country’s biggest and one of the most successful commercial cleaning franchises, Minster offers prospective franchisees with people-management skills a safe and secure future whether they buy an established branch or choose a new area. And as an essential business-to-business service with multi-sector appeal, office cleaning is less susceptible to fluctuations in the nation’s economy than most sectors.
In addition to the Devon and Cornwall branch, there is also a current resale in Derbyshire. Resales are available at a fee of £10,000 plus vat in addition to the purchase price of the business. Please contact Minster for further details.
New franchise opportunities include Cambridge, Doncaster, Durham, Guildford, Leicester, London, Middlesex, Peterborough and Swansea.
Initial start-up cost is £28,225 plus vat which covers licence, trading support and a marketing start-up package. In addition, between £40,000 and £60,000 working capital will be needed – finance is available from leading banks subject to status.
*Earnings Before Interest, Taxes, Depreciation & Amortisation