Renew Crew is a company whose core business activity is cleaning, protecting, and restoring exterior surfaces in commercial and residential buildings. This company provides the possibility of starting a home-based mobile franchise with relatively low start cost, affordable ongoing royalties, and very good profit margins.
Although this is not a well-known brand, they have only 20 franchise units in the United States; this company offers a perfect franchising opportunity for outdoor work lovers. Our main goal is to reveal to potential franchisee applicants all must-know information about Renew Crew franchise cost, fees, and profit that this business concept can yield to its owners.
How Much Does The Renew Crew Franchise Cost
The estimated cost of starting Renew Crew franchise is between $100,000 to $142,000. This financial estimation includes an Initial Fee of $65,000 and all other expenses that the owner will need to pay till the opening day.
As you can see from the estimation above, the initial fee of $65,000 will be the highest starting expense. By paying this fee, the franchisee gets a right to work under company trademarks, initial training for no charge, and a complete operational manual of this company’s business concept.
Renew Crew franchise owners can operate their business from home; if the franchisee opts for this, starting and operating expenses will be reduced to a minimum. The franchisor only demands that the franchisee make minor improvements to its home office; these modifications usually cost $1,000 or less.
The Renew Crew franchise owner must have at least one work vehicle to operate this type of business. So, the franchisee will need to lease one working vehicle and make some exterior (signage) and interior improvements, which will cost approximately $5,000.
Also, the franchisee must purchase a pressure washer that meets franchisor standards and the initial supply of cleaners, solvents, and coatings. All working equipment and initial supplies will cost from $2,500 to $7,500.
List of Renew Crew franchise costs:
- Initial Franchise Fee: $65,000
- Technology Fee: $5,000
- Working Vehicle: $1,500 – $5,000
- Signage Package: $3,000 – $4,000
- Equipment & Supplies: $2,500 – $7,500
- Grand Opening Advertising: $2,500 – $5,000
- Insurance: $2,000 – $5,000
- Initial Training Expenses: $2,000 – $4,000
- Work Licenses/Permits: $100 – $1,500
- Professional Fees: $1,500 – $3,000
- Real Estate/ Leasehold Improvements: $0 – $3,000
- Working Capital (first 3 months): $22,500 – $40,000
- Estimated Total Investment: $100,000 – $142,000
Renew Crew Franchise Fee
The Renew Crew franchise fees are a one-time Initial Fee of $65,000, ongoing Royalty Fee of 6%, and Marketing Fund Fee of 2% of gross sales. The franchisee must pay these ongoing fees every month immediately after opening day.
Also, the franchise owner must spend to local advertising 10% of the gross sales. However, this fee is not an unnecessary Renew Crew franchise cost because this practice will result in more monthly revenue, that is, in more profit that the owner will make.
This franchisor maintains a centralized customer service center; the operators answer customer calls, take basic customer information, and schedules appointments for all franchise units. For this assistance, the franchisee will need to pay a Service Fee that will cost $375 per week or 1% of gross sales.
List of Renew Crew franchise fees:
- Initial Franchise Fee: $65,000 – one time cost
- Royalty Fee: 6% of Gross Sales, or a minimum of $150 per week – an ongoing cost
- Marketing Fund Fee: 2% of Gross Sales – an ongoing cost
- Local Advertising Fee: 10% of the Gross Sales – an ongoing cost
- Services Fee: minimum of $375 per week or 1% of Gross Sales – an ongoing cost
- Renew fee: $15,000 – after expiration of 10 years Franchise Agreement
- Transfer Fee: $10,000 – if franchisee decides to sell his unit
Some groups of investors, such as Veterans of the U.S Army Forces, former police officers, firefighters, and medical personnel, have the right to a 10% discount off the $65,000 Initial Fee, so their cost will be $58,500.
Renew Crew Franchise Profit
Renew Crew franchise units, on average, make Gross Sales of $280,000, with a 30% profit margin. So the owner of this franchise can expect to earn an annual salary of $84,000 if it reaches the average sales that usually make these franchises.
Renew Crew franchises gross sales FDD data:
- Highest earning franchise: $606,726 per year
- Lowest earning franchise: $76,064 per year
- Average: $288,028 per year
According to ProfitableVenture, pressure washing businesses charge customers around $40 to $100 per hour of work. In this industry, companies have a high-profit margin, which means that the franchise owner can expect to make a high paycheck at the end of the month.
The Renew Crew franchise can produce an excellent profit per year, and that is due to low operating costs. All work is occurring on the customer’s site, so there are no bills for water and electricity, and the cleaning supplies are also very cheap.
As we mentioned before, the owner can run a franchise from home without any cost for the office and thus save money.
However, if the franchisee opts to have an office in the rented space, the ongoing operational cost of this business will be higher. The owner will need to pay a monthly rent for the office, which will reduce the expected Renew Crew franchise profit margin.
We gathered all the info about gross sales that this company’s franchise units make from Renew Crew Franchise Disclosure Document. The FDD data are the most accurate because they are collected directly from existing franchise owners.
Overview of This Franchising Opportunity
Renew Crew started with the business in 1993, and with franchising operations, they began in 2002. This company’s franchises offer services of cleaning and protection of all outdoor surfaces, and they are part of the branch of the cleaning industry that has had high growth in the past few years.
The owner of this business concept since 2020 is Premium Service Brands; at present, they are in a slight business decline. At the beginning of 2020, 27 Renew Crew franchises existed, and at the end of the year, only 17 of those were still under this company’s trademarks.
So potential franchisees must be aware that this franchising concept maybe has some special risks. Before final choice, it is best to contact former franchisees of this company and gather first-hand insights about its franchising practices.
All those investors who are considering investing in starting this franchise must be aware that at the start, this company will charge the minimum cost for a royalty fee, which is $150 per week regardless of sales levels. After 6% from all sales become higher than 150$ per week, they will start charging the royalty fee according to the gross revenue.
However, the pressure washing jobs are high-paying, and if the franchisees want to do a lot of work by themself, this can be a lucrative business venture. Also, the owner will need to launch an extensive local marketing campaign to inform potential customers about the existence of a new pressure washing business in their area.
The most significant advantage of this company’s franchising offer is its centralized customer call center. So franchisor will be dealing with customers’ questions, and franchise owners will concentrate on organizing everyday onfield work operations.
Although Renew Crew franchise starting cost is not small, and they have been in decline by the number of franchise units, it doesn’t mean that this franchisor can’t be a good choice for aspiring entrepreneurs. The pressure washing industry is on an upward trajectory, so it is expected that this company’s franchises will deliver even more profit to its owners in the future.
The best option is to start an independent pressure washing company. Still, this company franchising opportunity can be a perfect choice for rookie entrepreneurs who want to start an outdoor pressure washing business under the guidance of someone who is more experienced.