300-unit property damage remediation firm eyes Utah growth
Enterprise, The, Jun 21, 2010 by Shelton, Ryan
PuroClean, a Ft. Lauderdale-based property damage restoration company with more than 300 franchises locations nationwide, is looking to expand into the Salt Lake City market.
With plans to open at least three new PuroClean franchises in Utah’s capital city by the end of 2010, the company is actively scouting locations and potential franchisees with business and marketing experience throughout the valley.
PuroClean, which opened 90 new offices in 2009, specializes in the cleanup of residential fire, water and mold damage. Founded in 1990, the company has one location already in Utah–American Fork–and dozens in surrounding states.
“In 2009, Utah property owners filed more than $194 million worth of insurance claims for residential property damage, with 80 percent of that coming from within an hour radius of downtown Salt Lake City,” said PuroClean vice president of franchise development Monty Smith. “We want a piece of that business.”
Smith said states with long winters, such as Utah, provide the company with more winter-time business, as the cold weather often leads to broken furnaces and water pipes.
Aside from marketing toward people interested in starting their own franchise, PuroClean is in contact with existing disaster cleanup businesses, which Smith said would benefit from partnering with PuroClean’s buying power and reputation with insurance agencies.
Insurance agencies spent $46 billion on residential disaster cleanup in 2009 in the U.S., which accounted for 81 percent of all industry insurance claims, according to Best Data, a leading data reporting company for the insurance industry
PuroClean is an SBA pre-approved franchisor, which, according to Smith, allows it to offer its partners financing unavailable to most individuals. PuroClean requires an initial franchise fee of $45,000 to open a location, which includes a three-week training course in Florida with full technical training in water and fire damage, mold and biohazard remediation, and carpet and upholstery cleaning. Training also includes sales, marketing and operations. A PuroClean franchise can be run from home with a staff as small as one employee, according to Smith.
“We recommend that our franchisees have around $80,000 in liquid start-up cash and good credit to open a PuroClean,” Smith said. “From there, we can help with the financing of equipment, which costs around $45,000, and the purchase of a truck or van, which typically runs another $25,000
water damage cleanup
