ServiceMaster One of
Few to Offer Start-Up Financing to Would-Be Franchisees
As banks restrict lending, start-up and ongoing business support
can be a lifeline for people seeking small business ownership
February 17, 2009 – MEMPHIS, Tenn. -- Timing, opportunity and
economic feasibility – all three factors are key to giving
people the extra push they need to get started on the road to
business ownership. For Julie and Barry Ellis of Fairhaven, Vt.,
the decision to start a franchise business was all about timing.
In 2006, Barry had worked for a franchise owner for 15 years,
and Julie had run a home-based daycare business for 20 years.
When Barry’s employer passed away unexpectedly, and with their
children grown, the Ellises decided the time was right to start
their own business. But they needed financing to make their
dream a reality.
After looking into various franchise businesses, they settled on
ServiceMaster Clean, a business that fit their two main
criteria. They wanted a franchise that would be less prone to
the fluctuations of economic cycles and that would provide a
solid return on their investment if they chose to sell the
business in the future.
“Since Barry had worked for a previous franchise owner, we knew
the potential of the business. No matter how bad the economy is,
pipes still break and furnaces still malfunction,” Julie Ellis
said. “We’d been in contact with our (now) regional manager at
ServiceMaster, and he was instrumental in helping us get
started.”
ServiceMaster Clean, which provides commercial and residential
cleaning and disaster restoration services, is one of four
franchise businesses available through Memphis-based
ServiceMaster. ServiceMaster is also one of a relatively few
franchise companies that offers in-house financing through
ServiceMaster Acceptance Company (SMAC) to applicants who meet
the company’s franchisee profile. Other ServiceMaster franchise
businesses with financing available include Furniture Medic,
on-site furniture repair; Merry Maids, maid service; and
AmeriSpec, home inspections.
ServiceMaster’s vice president of market expansion, David
Messenger, says that for entrepreneurs looking for a business
with low start-up costs, a ServiceMaster franchise could be the
perfect fit, especially with the in-house financing.
“Since most of our franchises are mobile, on-site businesses,
they usually don’t require a large investment in equipment, and
very often they can be operated out of a franchisee’s home,”
Messenger said. “The in-house financing, which will finance up
to 80 percent of the initial franchise fee and start-up
equipment, is a great opportunity for credit-qualified
franchisees.”
After receiving financing for part of their initial investment
in the business through ServiceMaster Acceptance Company, the
Ellises were awarded a franchise in July 2007.
“We looked into other types of financing too, but felt we were
being taken for a ride by some of the other companies,” Ellis
said. “ServiceMaster offers different options for financing,
including one that worked for us.”
Barry Ellis said that ServiceMaster’s in-house financing not
only benefits those who want to finance their initial
investment, but also current franchisees too.
“As
franchise owners grow their business, capital and line of
credit loans are available through SMAC. This financial
assistance could provide additional vehicles, equipment, or real
estate. The financial assistance is available through the life
of their franchise,” Messenger said.
Prior to starting a ServiceMaster Clean franchise in 2006, Shane
Austin owned an auto inspection shop in Philadelphia. He wanted
to look into another type of business because state laws are
constantly changing, and the stability of his former business
was unpredictable.
Like the Ellises, Austin was drawn to a ServiceMaster Clean
janitorial franchise on a variety of levels, including the fact
that it didn’t require years of training or education, and that
it was a low-cost venture to get started in. He decided on SMAC
to help finance his initial investment – he paid half of the
franchise fee himself and financed the other half. Austin now
has a team of 14 employees, and was impressed by the company’s
eagerness to invest in him.
“What most attracted me was that even in rough economic times as
long as the business operates, some type of janitorial service
is required,” said Austin. “More importantly, the company
actually taught you the business. I really feel like I’m in a
true partnership with ServiceMaster Clean.”
For DeAnna and David Benson of Charlotte, N.C., the decision to
buy a Furniture Medic franchise was not so much about the low
start-up costs as it was about being backed by a national
company with prominent brand recognition.
For more than 20 years, David was self-employed in a custom
cabinetry and millwork business, with 30 employees in
Connecticut. The Bensons had known about Furniture Medic for
several years, but the timing to purchase had never been right.
They decided to open a Furniture Medic franchise after an
employee embezzled money from their previous business.
According to David, “It was a good fit because of my past
experience, and one of the things that sold me was being part of
the ServiceMaster brand. Because of what happened to us, my
trust and faith in anything was pretty low, but ServiceMaster is
a reputable company and we’ve been very pleased.”
The Bensons financed the franchise fee to get started through
SMAC, and noted the process was very painless. David does the
actual repair work and DeAnna handles the business aspects of
the franchise. Their customer base is fairly broad, with a mix
of commercial and residential customers. They have been in
business since February of last year.
ServiceMaster Clean has been in the franchise business for more
than 55 years. ServiceMaster Clean, Furniture Medic, Merry
Maids, and AmeriSpec combined add approximately 200 new
franchises each year, and ServiceMaster has provided in-house
financing through the ServiceMaster Acceptance Company for more
than 20 years. For more information on starting a ServiceMaster
franchise, visit
this page.
About ServiceMaster
ServiceMaster currently serves residential and commercial
customers through a network of more than 5,500 company-owned
locations and franchised licenses. The company’s brands include
TruGreen, TruGreen LandCare, Terminix, American Home Shield,
ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec.
The core services of the company include lawn care and landscape
maintenance, termite and pest control, home warranties, cleaning
and disaster restoration, house cleaning, furniture repair and
home inspection.
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