The top-ranked franchise in Entrepreneur Magazine’s Franchise 500 list for 2011 in the Restroom Hygiene Services category is Nixa’s own Aire Master of America Inc.
To nab the top spot, Aire-Master climbed 204 spots to No. 237 on Entrepreneur Magazine’s 2011 list, which was published in the January issue. Aire-Master ranked No. 441 last year.
The company known for its friendly skunk logo sells order-control and hygiene products and services through 82 franchisees and four corporate locations in the U.S. and Canada. It serves 20,000 customers nationwide.
“We service big corporations and little mom-and-pop stores, too,” said Jim Roudenis, Aire-Master’s franchise director. “Our service that we provide is not a luxury, it’s a necessity. (Our customers) need hand soap; they need a clean bathroom; they need paper towels; they need toilet tissue.”
Among the six companies participating in the restroom hygiene services category, only Torrence, Calif.-based Aerowest/Westair Deodorizing Services also made Entrepreneur’s Franchise 500. It was ranked No. 420.
More than 100 companies on the list, such as Hampton Hotels (No. 1), McDonald’s (No. 3) and Supercuts (No. 5), have locations in Springfield, but notable Springfield-based franchisors Andy’s Frozen Custard and Incredible Pizza Co. were not listed.
According to
www.entrepreneur.com, the Franchise 500 list was assembled after it asked franchisors to answer its survey questions, and the franchisors provided financial data that Entrepreneur Magazine then verified. Factors considered were financial strength and stability of the franchises, growth rate and size of the system. Data was analyzed by an independent accountant, and a cumulative score was given to each company.
Calls to notable Springfield-based franchisors Andy’s Frozen Custard and Incredible Pizza Co. to see if they participated in the survey were not returned by press time.
Holding steady
Roudenis attributed Aire-Master’s 2011 jump in rank to steady growth, while other franchisors held or lost franchisees during the economic downturn. The company added one franchisee in 2010 and 15 franchisees in 2009.
Roudenis said 2010 franchise service sales were up 14 percent compared to 2009. Sales the two preceding years grew 1 percent and 10 percent, respectively, Roudenis said, declining to provide specific figures.
Dan Brach, owner of Aire-Master of Northwest Arkansas, has an 18-year history with the company.
“They are a family-oriented group, and it’s really the right size of business for me,” said Brach, a franchisee since 2003. “I can call the president of the company on a whim.”
Brach’s franchise business has been flat the last three years with revenues around $275,000 a year. He said roughly half of his 370 customers are restaurants.
Roudenis said franchise fees are $33,000 to start with 5 percent royalties. Franchisees are required to purchase the company’s cleaning products, which are manufactured in Nixa.
Brach said the cost to buy Aire-Master’s cleaning products represents about 25 percent of his company’s annual sales.
While revenues have been flat, Brach has noticed a shifting clientele during the economic downturn. He’s most often lost customers to business closures or new ownership shaving business expenditures. Those losses have been offset by an upswing in convenient stores and assisted living facilities.
“They are fighting for every dollar they can get, and they don’t want to lose customers because of messy bathrooms,” Brach said.
Backyard sales
In its southwest Missouri corporate territory, which stretches to portions of southeast Kansas and northwest Arkansas, Aire-Master has 2,000 customers, including Panera Bread, Wendy’s of Missouri and James River Assembly. Melissa Cook, corporate office manager, said the company focuses on businesses, but revenues have been bolstered lately by the company’s retail product sales.
Sean Kosar, district manager for the seven Panera cafés in Springfield, Branson and Joplin, said the stores each pay $21 for weekly service under Aire-Master’s 3-D Clean package, which offers deodorizing, disinfecting and cleaning and detail treatments. Kosar said Panera Bread has been a client for about eight years.
“They’ve found one thing they’re good at, and they are sticking with it,” he said.
Aire-Master also has received recognition in 2010 from Short Hills, N.J.-based Dun & Bradstreet Corp., a provider of credit information on businesses. Dun & Bradstreet ranked Aire-Master among its AllBusiness AllStar Top 300 Franchises, earning 161st on that list, 47th for franchise system longevity and fifth for financial strength.
Franchised businesses account for nearly 50 percent of all U.S. retail sales, according to Franchise Alliance, a national franchise consultant. The International Franchise Association says that franchising is responsible for 760,000 businesses, 18 million jobs, and 14 percent of private-sector employment.
Aire-Master was founded in 1958 by Jerry McCauley, who today owns the business with his son, Douglas McCauley. The company began franchising in 1976.[[In-content Ad]]
