Joe Matthews, founder of Franchise Performance Group and former Subway developer, has gone on the record many times lamenting the rapidly expanding number of brands entering the franchise industry. In an October 2018 article he stated that hundreds of brands are entering the game every year despite a fairly flat entrance rate of new franchisees. It's getting harder and harder to stand out in the growing crowd. Matthews reflects on several changes that he's seen accompanying this proliferation of brands such as the professionalization of franchises and the influx of Private Equity.
You've Got Maids is not, and has no intention to sell to PE. This is an important distinction for prospective franchisees. PE has a habit of ripping out everything non-essential to the bottom line of a business. It's a simple method of increasing profit and thereby quickly improving the equity they hold so that they can turn around and resell that stake in the business for a profit. This isn't always going to benefit the franchisees. In fact, you can imagine many ways that this might hurt the franchisees. Private equity is getting into franchising to make money. Period.
As a franchise, You've Got Maids differentiates in its purpose and structure. You've Got Maids was founded with the mission of "Empowering Entrepreneurs to Pursue their American Dream." We didn't get into franchising as a means of using franchisees as a source of risk minimization, easy capital, and inspired management to grow the brand for the benefit of the franchisors bottom line. That's everyone else. We started our first location with the intent of franchising so that we may help entrepreneurs reach their dreams. Founded by former franchisees, we realize the hardships entrepreneurs go through and want to help. Our brand grows so that we can help more franchisees. Other brands get more franchisees so that they can grow.
If you look at the largest seven franchises in the house cleaning industry, the majority are owned to some degree by Private Equity. We urge you to consider this in your considerations when looking for a franchise that aligns with your plans. If you're interested in learning more about franchising with You've Got Maids, hit the big blue button below and check out the franchising portal of our website. You'll find plenty of forms and our phone number so that you can reach out to us when you're ready to begin the Discovery Process. Our Discovery Process goes on your pace, is built to answers your questions, and is as transparent as possible. We can't wait to speak with you.