A well-established branch of Minster Cleaning Services is available for sale at £205,000. The thriving commercial cleaning company’s Nottinghamshire franchise was purchased as a new start in 1994 and the current franchisee, John Bate, took over in October 2011. John chose Minster because he knew that the management experience gained from his previous career as a co-director of a health and beauty spa business would prove to be invaluable.
John is looking forward to retirement; he says that the business is stable and staff quality is excellent. “The business employs over 100 staff providing services to clients across a range of business sectors, including healthcare and dental practices, where Minster has valuable specialist knowledge. Client retention is good, the branch has around 150 contracts in place and annual turnover is approaching £750,000.
“Minster’s exceptionally large territories offer virtually unlimited scope for expansion and this franchise covers Nottingham, Beeston, Long Eaton, Hucknall, Mansfield, Sutton-in- Ashfield, Newark-on-Trent, Grantham and surrounding areas.”
Mike Parker, managing director of Minster, says: “Contract cleaning is an essential business service with multi-sector appeal, so is less susceptible to fluctuations in the nation’s economy than most sectors. With a low EBITDA* multiple, the Nottinghamshire franchise represents great value for money and the investment could easily be recouped in just a few years.”
PwC’s latest UK Economic Outlook reveals that the East Midlands has the fastest-growing economy in the UK outside of London and the South East, and, according to the UK Powerhouse report, Nottingham has overtaken Derby to become the fastest-growing city economy in the East Midlands.
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, as well as showing how the business is likely to perform in varying market conditions.
Most of Minster’s recent franchisees have joined by acquiring a resale and all have made significant positive impacts on the businesses that they bought, benefiting 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.
Purchasers of a resale will benefit from a highly effective marketing strategy, as well as help with the transition from employment to self-employment. Ongoing support covers accounts, marketing, training and operations, as well as 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 full member of the British Franchise Association since 1992. As the country’s biggest and one of the most successful commercial cleaning franchises, the company offers prospective franchisees with people-management abilities a safe and secure future, whether they buy a branch that is already up and running or choosing a new area. The top 10 branches are averaging annual sales in excess of £1.7million and some are on the verge of joining the Liverpool, Sheffield, and Leeds and Wakefield branches in Minster’s £2million Club. Annual turnover for the group is approaching £41million.
There are also currently resales available in Devon and Cornwall at a fee of £10,000 plus vat in addition to the purchase price of the business.
New franchise opportunities include Buckinghamshire, Cambridge, Doncaster, Durham, Guildford, Leicester, London, Middlesex, Peterborough and Swansea. Initial start-up cost is £28,225 plus vat. 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
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