Maid Brigade Franchise Cost & Fees
Date of Incorporation: 1982
Franchising Since: 1984
Headquarters: Atlanta, Gerogia
Business Description: Maid Brigade offers light cleaning services including dusting, mopping, vacuuming, and tidying or any other services deemed necessary. Generally, two employees will perform cleaning services at each customer's home.
Franchise Offer: The franchisee will operate a business that provides supervised team cleaning services to homes and offers proprietary and other household products for sale using the trade name Maid Brigade.
Financial Assistance: Maid Brigade does not offer direct or indirect financing. Maid Brigade does not guaranty any note, lease or other obligation of franchisees.
Training and Assistance: Franchisees must successfully complete the Pre-Home Office Training before they begin operating a Franchised Business. After completion of Pre-Home Office Training, Home Office Training will give franchisees experience in all aspects of operating the Franchised Business including, among other things, product and services, customer relations, employee relations, Heat at Work (the Maid Brigade culture for fostering great relationships), and sales techniques, as well as classroom instruction on administration, marketing, time management, structuring the services to be offered, MicroMaid Software, and analyzing the Franchised Business. The Mentor Visit Program (MVP) Training and the Blastoff Training are both post-Home Office Training follow-up training and assistance.
Territory: The franchisee will have an exclusive territory (referred to as the Operating Territory). The number of qualified households in the Operating Territory will depend on the size of franchise purchased. A “qualified household” is a household with an estimated household income sufficient to place it in the upper-middle to upper class in the Operating Territory, as Maid Brigade determines in its Reasonable Business Judgment.
Term of Agreement and Renewal: The length of the franchise term is 10 years. If certain requirements are met, the franchisee can renew for an additional 10-year term.
Obligations and Restrictions: Maid Brigade generally grants franchises only to individuals who are looking for an active, rather than a passive, investment. The franchisee must directly supervise the Franchised Business. The franchisee may hire a manager or a management team to assist as deemed appropriate. Maid Brigade has the right to approve any manager the franchisee hires before the manager assumes management responsibility for the Franchised Business. Maid Brigade advises that all senior managers of the business attend Home Office and MVP Training classes. Franchisees must offer the professional daytime, light housecleaning services authorized. In offering these services, franchisees may use only equipment, materials, supplies, uniforms, forms, and products that meet Maid Brigade specifications.
Estimated Number of Units: 480
|Name of Fee||Low||High|
|Initial Franchise Fee||$25,000||$40,000|
|Equipment, Fixtures, Other Fixed Assets Including Leasehold Improvements, Signs, Pre-Opening Expenses||$1,500||$3,000|
|Security Deposits and Other Prepaid Expenses||$1,500||$2,000|
|Insurance and Bond||$1,000||$2,000|
|Opening Advertising and Telephone Listing for the first three months||$12,000||$13,500|
|Additional Funds (3 months)||$35,700||$51,800|
|Type of Fee||Amount|
|Royalty||Weekly royalty percentage based upon Weekly Gross Revenue:
Less than $300,000: 6.9%
$300,000 to $699,999: 6%
$700,000 to $899,999.99: 5%
$900,000 to $1,499,999: 4.5%
S1.5MM to $1,999,999: 4%
|Ad Fund Contributions||2% of Weekly Gross Revenue.|
|Local Client Advertising||Low Investment Markets spend a minimum of $4,000 per month, and High Investment Markets a minimum of $4,500 per month.|
|Local Employee Advertising||Minimum of $50 per week.|
|Transfer Fee||The then current fee. Presently, the combined Transfer and Training fee is $9,500|
|Proprietary Items||Varies under circumstances.|
|Services the Franchisor Provides to the Franchisee’s Customers||Varies under circumstances.|
|Management Fee||Varies under circumstances but generally between 5%-10% of revenue earned during the period that Maid Brigade manages the business for the franchisee.|
|Additional Assistance||Varies under circumstances but approximately $300 per day.|
|Interest on Late Payments||The lesser of 2% over the franchisor’s bank's prime loan rate or the maximum amount permitted by law.|
|Late Fees on Late Payments||10% of amount past due.|
|Indemnification||Varies under circumstances.|
|Costs and Attorneys' Fees||Varies under circumstances.|
|Insurance||Varies under circumstances.|
|Technology Fee||$18.00 per week.|
|Software Fee||$15 per week.|
|Annual Convention||Varies: Currently $155 ea. per franchise owner.|
|Testing New Suppliers or Items||No charge.|
The above information has been taken from the FDD of Maid Brigade. Year of FDD: 2016
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