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Merry Maids Franchise Cost & Fees

Date of Incorporation: 1980
Franchising Since: 1980
Headquarters: Memphis, Tennessee

Business Description: A Merry Maids franchise business provides affordable, efficient cleaning for the person who does not have the time or the desire to clean regularly. While the Merry Maids system provides thorough residential cleaning even for a customer desiring only a one-time visit, the system is not for disaster restoration or extraordinary cleaning projects. The Merry Maids system utilizes a regular cleaning concept composed of a certain number of integral parts, all of which are absolutely necessary for a successful operation. The Merry Maids system is designed and best suited for residential customers.

Franchise Offer: Two types of franchises offered:

  1. Merry Maids Franchise: Franchisor grants franchises for house and window cleaning services for residential customers.
  2. Conversion Franchise: This offer is for Merry Maids franchises to those persons wishing to convert their existing residential cleaning business to a Merry Maids franchised business.

Financial Assistance: The franchisor does not offer direct financing. Their affiliate, ServiceMaster Acceptance Company (SMAC), does offer financing for the initial franchise fee. If the franchisee is interested in obtaining a loan guaranteed through the United States Small Business Administration, Merry Maids is listed on the Franchise Registry, which can provide expedited loan processing for franchise businesses.

Training and Assistance: Operations Training is based in Memphis, Tennessee at the Home Office and Resource Center, and includes both classroom and on-the-job training. Before attending Operations Training, the franchisee is required to successfully complete Pre-Operations Training from his/her location. The franchisor usually holds an annual three-day National Seminar at a hotel/convention center near headquarters or at another designated location. The Seminar program includes at least 15 hours of training sessions for franchise owners and managers. The franchisee must attend the first national seminar scheduled after signing the Franchise Agreement. The franchisee, or a designated officer or manager of the franchisee, must attend at least two of the meetings offered each year, which includes the National Seminar and Regional Meetings. Additional training through podcasts and webinars are available throughout the year on topics which the franchisor believes will be of interest to franchise businesses. During the first 12 weeks of business operations, the franchisor will provide business coaching consisting of weekly telephone calls.

Territory: The franchisee will receive a territory (Market) with a minimum of 15,000 to 35,000 Qualified Households for a Full-Sized Market, a minimum of 8,000 to 15,000 Qualified Households for a Mid-Sized Market, and up to 8,000 Qualified Households for a Small-Sized Market. A Qualified Household is a household with an average annual income of $75,000 or higher. In addition to Qualified Households, the franchisor will also consider total population and relative affluence in designating each Market, utilizing census data from SRC, LLC located in Orange, California. The franchisee cannot advertise or solicit sales or accept orders outside of the Market.

Term of Agreement and Renewal: The initial franchise term is for five years with an option of renewing the franchise for additional periods of five years each, if the franchisee has complied with the Franchise Agreement and maintained the business in accordance with the Operations Manual.

Obligations and Restrictions: TMerry Maids recommends, but does not require, that the franchisee personally supervises the franchised business. If the franchisee does not personally supervise the business, he/she must employ a manager who will be responsible for direct, on-premises supervision of the business. The manager must have successfully completed the Merry Maids training program. The franchisee must offer and provide all the services required. The franchisee may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands that the franchisor controls.

Estimated Number of Units: 1,680

Investment Tables:
Initial Investment for a Small-Sized Market
Name of Fee Low High
Initial Fee $36,500 $36,500
New Owner Training Included in Initial Franchise Fee
Travel Expenses while Training $600 $1,000
Real Estate and Improvements $2,000 $4,000
Computer Hardware and Software Included in Initial Franchise Fee
Insurance $2,400 $8,400
Equipment $5,250 $6,850
Miscellaneous Opening Costs $1,400 $100,000
Opening Inventory Package Included in Initial Franchise Fee
Shipping and Handling Costs plus Sales Tax $300 $600
Advertising - 3 months $5,000 $6,000
Additional Funds (3 Months) $4,000 $5,500
Seminar Attendance Fee $1,000 $1,000
Online Marketing Fund $2,000 $2,000
ESTIMATED TOTAL $60,450 $171,850
Initial Investment for a Mid-Sized Market
Name of Fee Low High
Initial Fee $40,500 $40,500
New Owner Training Included in Initial Franchise Fee
Travel Expenses while Training $600 $1,000
Real Estate and Improvements $2,000 $4,000
Computer Hardware and Software Included in Initial Franchise Fee
Insurance $2,400 $8,400
Equipment $5,250 $6,850
Miscellaneous Opening Costs $1,400 $100,000
Opening Inventory Package Included in Initial Franchise Fee
Shipping and Handling Costs plus Sales Tax $300 $600
Advertising - 3 months $5,000 $6,000
Additional Funds (3 Months) $4,000 $5,500
Seminar Attendance Fee $1,000 $1,000
Online Marketing Fund $2,000 $2,000
ESTIMATED TOTAL $64,450 $175,850
Initial Investment for a Full-Sized Market
Name of Fee Low High
Initial Fee $40,500 $50,500
New Owner Training Included in Initial Franchise Fee
Travel Expenses while Training $600 $1,000
Real Estate and Improvements $2,000 $4,000
Computer Hardware and Software Included in Initial Franchise Fee
Insurance $2,400 $8,400
Equipment $5,250 $6,850
Miscellaneous Opening Costs $1,400 $100,000
Opening Inventory Package Included in Initial Franchise Fee
Shipping and Handling Costs plus Sales Tax $300 $600
Advertising - 3 months $5,000 $6,000
Additional Funds (3 Months) $4,000 $5,500
Seminar Attendance Fee $1,000 $1,000
Online Marketing Fund $2,000 $2,000
ESTIMATED TOTAL $64,450 $185,850
Other Fees
Type of Fee Amount
Service Fee 7% of Gross Sales; 5% above $500K.
Software Lease 360: $35-$45 per seat per month.
Software:
Quick Books -Accounting
Quick Books - Payroll

$175 for 3 years
$300 annually
Remote Data Back-up $34 per month.
Training for Additional Persons:

1 person, no hotel
1 person, 1 king suite
2 people, 1 king suite


$1,150
$2,650
$3,650
On-Site Training and Emergency Response Service $500/day + expenses.
Transfer Fee $7,000 for the first license transferred and then $3,000 for each additional license transferred at the same time.

Transfer to a child of current owner is $3,500 for first license and $1,250 for each subsequent license.

Transfer to spouse, no transfer fee.
Renewal Fee $1,000 per agreement with a $3,000 maximum per calendar year.
Franchise Agreement Change Fees --Adding/deleting/changing $400 - adding or deleting owner name, other than spouse;
$400 - changing business structure (after first year of original license term);
$400 - changing business entity name.
Lead Fee $5,000
Training Fee for Transfers $2,650 per person (includes one hotel room).
Audit Cost of audit.
National Ad Fund 1.3% of total gross sales per week.
Local Digital Marketing Fee 0.7% of total gross sales per week.
Employee Drug Screening Generally $20.00 - $25.00 per test.
Employee Background Check Generally $12.00 - $13.00 per test.
Mobile Application License for iPad or other supported mobile device Mobile Application License for iPad or other supported mobile device $12 per month.

The above information has been taken from the FDD of Merry Maids. Year of FDD: 2015

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