Maid Simple Franchise Costs & Fees
Date of Incorporation: 1982
Franchising Since: 2011
Headquarters: Atlanta, Georgia
Business Description: The franchisor is Maid Brigade, Inc. The franchisor grants Maid Simple House Cleaning franchises for the operation of a light household cleaning business. The house cleaning services the franchisee will offer include dusting, mopping, vacuuming, and tidying or any other services deemed necessary.
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 Simple House Cleaning.”
Financial Assistance: The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor and its affiliates have no past practice or future intent of selling, assigning, or discounting franchisees’ financing arrangements to a third party. The franchisor and its affiliates do not receive any direct or indirect payments or other consolidation from any person for the placement of financing with the lender.
Training and Assistance: The franchisor will assign the franchisee an individual to help with opening training and to help: (i) establish a business plan for the first year; (ii) establish plans for opening the franchised business; and (iii) prepare for training. The time to complete the opening training is two days. If the franchisor offers additional or refresher courses, those will not be mandatory.
Territory:The franchise that granted to franchisees is to be operated out of the franchisee’s home. Franchisees will receive an exclusive territory defined by a map and zip codes and will include a minimum of 10,000 Qualified Households. A Qualified Household is a home with estimated household income sufficient to place it in the upper-middle to upper class within the area the exclusive territory is located. Franchisees can serve customers located anywhere, with the one exception that they are not allowed to serve a customer located in an area that has been previously awarded as an exclusive territory to a Maid Simple or a Maid Brigade franchisee.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisee meets certain requirements, he/she may renew for an additional 10-year term.
Obligations and Restrictions: Franchises are generally granted only to individuals who are looking for an active, rather than a passive, investment. The franchisee must directly supervise the franchised business on a full time basis. The franchisee may assign the Franchise Agreement to a corporation, provided the corporation conducts no business other than the franchised business, and further provided that the franchisee actively manages the corporation and control the majority of its equity and voting power. The franchisee must offer the professional daytime, light housecleaning services authorized. In offering these services, the franchisee may use only equipment, materials, supplies, uniforms, forms, and products that meet the franchisor’s specifications.
Estimated Number of Units: 15
|Name of Fee||Amount|
|Initial Franchise Fee||$6,995|
|Equipment, Fixtures, Other Fixed Assets Including Signs, Pre-Opening Inventory||$1,200|
|Security Deposits and Other Prepaid Expenses||None|
|Insurance and Bond||$400|
|Additional Funds - 3 Months||$100|
|TOTAL ESTIMATED INITIAL INVESTMENT||$10,595|
|Type of Fee||Amount|
|Royalty||19% of gross sales during the first year of operation, then between 15-19% after that, depending on the franchisee’s gross revenue.|
|Marketing and Advertising||$500 each month for first six months. After those first six payments, franchisees must spend at least $500 on local marketing and advertising in their own market.|
|Transfer Fee||The then current fee. Presently, the combined Transfer and Training fee is $4,000.|
|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 the franchisor manages the franchisee’s business.|
|Additional Assistance||Varies under circumstances but approximately $300 per day.|
|Indemnification||Varies under circumstances.|
|Costs and Attorneys' Fees||Varies under circumstances.|
|Insurance||Varies under circumstances.|
The above information has been taken from the FDD of Maid Simple. Year of FDD: 2016
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