Huntersville Entrepreneur Cleans Up With Innovative Franchise Concept

Paul Dorsey sees opportunities where others don't. After 10 years in sales and business development for Detroit-based commercial cleaning franchisor Jantize� America, Dorsey had a better idea.

He decided it was time to surf the national wave of interest in franchising. Janitorial services appropriate for all types of public buildings-free-standing structures in office parks, movie theaters, car dealerships and corporate headquarters-seemed to be an ideal landing spot for his plans. What business doesn't want a clean, orderly environment for its employees and customers.

So in 2006, Dorsey and other established Jantize associates bought out the man who founded the franchise in 1983 and prepared to execute a growth strategy. He planned an orderly expansion of his franchise into existing as well as new markets while increasing its overall profitability and profile.

Dorsey says commercial cleaning is a $128 billion a year industry in the U.S. Many experts see it as highly stable and largely recession proof. He set his sights on grabbing a bigger share. Dorsey talked about his sales background, what he called his innovative franchise concept and his last 24 months as an entrepreneur.

Business Today: How big is Jantize America right now? Paul Dorsey: "We have Area Developer Franchise operations in Charlotte and six other markets in the East, including Greensboro, Raleigh, Tampa, Orlando and Hartford for a total of 92 locally run units in the U.S." Business Today: Did you rely on a formal business plan? Paul Dorsey:"Yes. I had spent 10 years in the commercial cleaning industry and I spent three full years putting together my franchising concept and business plan� it's 40 pages." Business Today: What did you pay for Jantize and how did you finance it? Paul Dorsey: "I took out a loan to cover the initial $50,000 investment and the founder will receive residual income from us for the next 15 years. We've already paid off the loan." Business Today: How does North Mecklenburg play in expanding your business? Paul Dorsey: "We have a total of 40 unit franchises in the Charlotte area; many in North Mecklenburg, Iredell and Cabarrus area. Those areas represent more than 50 percent of our revenues." Business Today: How is your operation organized? Paul Dorsey: "Small business owners form the basic unit. Initial franchise fee is $3,500 to $20,000 depending on the number of customers. They also pay us a monthly percentage. They're the cleaning professionals; we handle all their billing, credit and collections as well as sales and marketing tasks. I believe hard-working people will choose to make the change from a $9 or $10 an hour job to running their own business without administrative headaches, taking home $3,000 or more each month and living the entrepreneurial dream." Business Today: Who are the Area Franchise Developers? Paul Dorsey:"They form the second level. There are seven of them who support our existing unit franchises and are working to create new units. Developer franchises are available for as little as $50,000; start-up costs are low, they get residual royalties as unit franchises grow, they have unlimited growth potential with the prospect of long term security." Business Today: So you serve as head janitor, right? Paul Dorsey:"Every level of the organization has a stake in the success of everybody else. I don't know about cleaning but I do know about franchising and about sales. My team makes the cold calls to line up business. Once a month, we run a small classified ad to attract people wanting to start their own businesses. We get inundated with 30 to 40 calls but most of those responding don't meet our rigid franchise guidelines. We try to develop one or two units a month." Business Today: Everything going according to your plan? Paul Dorsey: "Our 40 unit franchises in Charlotte are averaging $6,000 a month and they're clearing 85 percent of that so business is good and growing. Customer retention is good, too; in a very competitive marketplace, Jantize units are retaining 95 to 96 percent of accounts from quarter to quarter. While the Southeast remains our focus, there's no reason we can't grow to other major markets in the future."

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