Merry Maids
Date of Incorporation: 1980
Franchising Since: 1980
Address: Memphis, Tennessee
Country: U.S.
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 franchise:
i.) Merry Maids franchise - Franchisor grants franchises for house and window cleaning services for residential customers.
ii.) 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, as follows:
| Small-Sized Market | Mid-Sized Market | Full-Sized Market | |
|---|---|---|---|
| Amount Financed | Up to $16,800 | Up to $20,000 | Up to $24,800 |
| Down Payment | Min of $4,200 | Min. of $5,000 | Min. of $6,200 |
| Term | 7 years | 7 years | 7 years |
| Interest Rate (APR | 11% | 11% | 31% |
| Initial Monthly Payment | $160 | $190 | $227 |
Training and Assistance: The franchisee must attend the annual three-day National Seminar, located at a hotel/convention center near headquarters. The franchisor also holds Regional Seminars two or more times per year, at hotels in various cities. The franchisee must attend, at their own expense, specialized training at least once during the term of the franchise agreement and at least 2 of the 3 meetings offered each year, which includes the National Seminar and Regional Meetings. The initial training is based in Memphis, Tennessee at the Home Office and Resource Center, and includes both classroom and ‘on-the-job’ training.
Territory: The franchisee will receive an exclusive territory with a minimum of 10,000 qualified households for a full-sized market, a minimum of 5,000 qualified households for a mid-sized market, and a maximum of 5,000 qualified households for a small-sized market.
Term of Agreement and Renewal: The initial franchise term is for 5 years, with an option of renewing the franchise for additional periods of 5 years each.
Obligations and Restrictions: Merry Maids recommends, but does not require, that the franchisee personally supervises the franchised business. If the franchisee does not personally supervise the business, they 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.
Total Number of Units: 8,000 residential cleaning professionals across the globe. More than 1,600 units.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Small-Sized Market Initial Fee | $4,200 | $21,000 |
| Mid-Sized Market Initial Fee | $5,000 | $25,000 |
| Full-Sized Market Initial Fee | $6,200 | $31,000 |
| New Owner Training | Included in Initial Franchise Fee | |
| Travel Expenses While Training | $600 | $1,000 |
| Real Estate and Improvements | $2,000 | $4,000 |
| Equipment | $4,950 | $5,950 |
| Miscellaneous Opening Costs | $2,000 | $4,000 |
| Opening Inventory Package | Included in Initial Franchise Fee | |
| Advertising 3 Months | $4,000 | $5,000 |
| Additional Funds 3 Months | $4,000 | $5,500 |
| Seminar Attendance Fee | $1,000 | $1,000 |
| Direct Mail Fund | $2,000 | $2,000 |
| Total | $25,150 | $59,450 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Service Fee | 7% of Gross Sales 5% above $500K |
| Software Lease | $14.40/week if $3,000 or below in weekly Gross Sales |
| Training for Additional Persons: 1 person, no hotel 1 person. 1 king suite |
$660 $1,775 |
| On-Site Training and Emergency Response Service | $500/day + expenses |
| Transfer Fee | Currently $3,000 for the first license transferred and then $2,500 for each additional license transferred |
| Training Fee for Transfers | Currently $2,435 for up to two attendees sharing one hotel room and trained within the first year of operation |
| Audit | Cost of audit |
| National Ad Fund | Percentage of total gross sales per week as follows: • 2.5% of weekly sales under $1,999.99 • 1.5% of weekly sales between $2,000.00-$3,999.99 • 1% of weekly sales greater than $4,000.00 (up to $1million annually) • .5% of weekly sales on all sales over $lm annually • .25% of weekly sales on all sales $3million and over |
| Customer Satisfaction, Measurement Tool Program | $1 per customer contacted |
| Seminar Registration Fee | Currently $59 |
| Employee Drug Screening | Generally $20.00-$25.00 per test |
| Employee Background Cheek | Generally $12.00-$13.00 per test |
Date of FDD: 2008
The above information has been compiled from the FDD of Merry Maids along with online sources.
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