Franchise Opportunity – Mr Clean

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Have you ever noticed that laundry businesses have been booming in recent years? Is this one area of business that you would like to venture into? Are you an ambitious entrepreneur who is seeing a lot of potential in the laundry business but not sure where to start?

Taking advantage of this opportunity

Maybe it is time to stop searching for ways to start your laundry business. Enter into a franchise with Mr Clean and this could well be your best decision ever. Mr Clean is a brand involved in the dry cleaning and laundry business sector.

International affiliation in this market segment

Mr Clean was started in 1993 to be a one-stop clothing care business. Mr Clean is registered with DLI or the Drycleaning and Laundry Institute International which was previously the International Fabricare Institute of the United States of America.

Entering the Malaysian market

In Malaysia, Mr Clean is a brand known as a professional fabricare provider since 2002. It is one of the most recognized names in this business sector.

Starting this business

To date, there are over 200 branches and outlets across Malaysia. The franchise fees range between RM10,000 and RM50,000 depending on the scale of your business. On top of that, you need to pay an 8% royalty fee from your monthly gross sales.

Including everything else, the initial capital needed to start this business would be about RM250,000. In terms of franchise types, there are 3 plans that you can venture into. When you start this business, you will be trained on how to operate this business.

  • MC-1 is the first module where you will need a complete full-scale shop. You will need at least 1,300 square feet which includes the need for full equipment.
  • If your investment is lower, you can consider the MC-2 which needs only 800 square feet without dry cleaning services.
  • The smallest investment would be the MC-3 requires only 300 square feet of space that functions only as a collection center.

What do our experts say?

The laundry business is one which has been growing tremendously in recent years. To some extent it is recession-proof and starting out in this segment could bring about a lot of opportunities and revenue options.

  • Brand Reputation – Very strong especially in the laundry business.
  • Initial Capital – Slightly on the high side. You will need to start between RM150,000 and RM350,000.
  • Return on Investment – This business is very stable and robust. However, you need to sustain the business for the first 2 years before enjoying a steady income.
  • Location – Shop lots would be most ideal but it should be convenient and have ample parking spaces.
  • Customer Segment – Mass market mostly families.
  • Franchise Fees – RM10,000 to RM50,000 depending on which option you choose.
  • Royalty Fees – 8% of the monthly gross sales.
  • Marketing and A&P Fees 3%

The Final Word

Mr Clean is a renowned brand with a very sound business plan. If you venture into this business, you must have the passion and commitment at least for the first few years. This means you will need to have sufficient reserves to sustain your operations.

The competition is getting stiffer now with the automated laundry businesses coming up. You will need to be resilient especially in your cash flow and other support services.

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