Molly Maid Franchise Cost & Fees
Date of Incorporation: 1979
Franchising Since: 1979
U.S. Headquarters: Ann Arbor, Michigan
Country of Origin: Canada
Business Description: Molly Maid, LLC is the franchisor. Molly Maid Franchised Businesses provide residential homeowners a premium home cleaning experience known as the Molly Maid System.
Franchise Offer: Molly Maid awards franchises for the operation of professional residential housekeeping services under the “Molly Maid” trademark and/or similar trademarks or other symbols, logos, emblems, slogans or indicia of ownership that are or may be designed by the franchisor in the future and using the methods, processes and operating systems developed by the franchisor in connection with the franchise.
Financial Assistance: Molly Maid has been deemed eligible for streamlined and expedited loan processing through the Small Business Administration. The franchisor may offer financing for the initial fees if the franchisee meets the qualifications and credit standards. The franchisor also suggests third party lending sources. Enterprise may offer franchisees financing for vehicles if they meet their qualifications; however, franchisees are not required to purchase or lease their vehicles from them. Other than the described instances, Molly Maid Inc. will not guarantee any notes, leases or obligation.
Training and Assistance: Initial Training begins with Right Start, which is Molly Maid’s comprehensive preparation program. With guidance from the training team, along with training Manuals, the franchisee begins a six to eight week program that includes numerous pre-opening activities. Classroom and hands-on training sessions will be conducted at Molly Maid’s home office in Ann Arbor, MI for five days and at one of their Owner Training Centers for an additional five days. The instructional materials consist of Manuals, DVDs, demonstrations, presentations and on the job practice. This training will be conducted by the Molly Maid training staff, franchise services team and experienced franchise owners. During the first months of operation, the franchisee will work closely with the Molly Maid operations team. In addition to the Initial Training Program, the franchisor offers ongoing training programs to enhance the System, the management of the Franchised Business, and the services provided to Molly Maid customers. Currently, it has chosen to provide on-going training through the Molly Maid intranet web site - which is a web site only for Molly Maid owners, conference calls, webinars, electronic mail, monthly publications, annual conventions, town hall and regional meetings.
Territory: Territories are identified by US Census Bureau Census Tracts or physical or political boundaries. Within the Territory, the franchisee and Molly Maid will agree upon an approximate number as the Target Household Value that meets Molly Maid’s current demographic formulation. The Standard-Market Size Territory includes a Target Household Value of approximately 30,000 to 40,000. In certain areas of the country Molly Maid will approve a Mid-Size Market Territory. The Mid-Market Size Territory includes a Target Household Value of approximately 20,000 to 30,000. The minimum Territory Size is 20,000 target Households.
Term of Agreement and Renewal: The length of the franchise term is 10 years from date of signing of agreement. If the franchisee is in good standing and full compliance with the franchise agreement, he or she can add additional renewal terms of 10 years.
Obligations and Restrictions: The franchisee must at all times faithfully, honestly, and diligently perform his/her obligations under the franchise agreement. The franchisee must not engage in any other business or activity that conflicts with his/her obligations to operate the franchised business. The franchisee must designate one managing owner as a primary contact with the franchised business. In the case of multiple owners, only one managing owner will be required to work full-time in the franchised business. The managing owner must successfully complete the initial training program. The franchisee must offer and provide all of the services required for Molly Maid franchises, and in the manner prescribed. The franchisee may not market or perform any services that the franchisor has not authorized.
Estimated Number of Units: 650
|Name of Fee||Low||High|
|Initial Franchise Fee||$14,900||$14,900|
|Initial Package Fee||$10,000||$10,000|
|Auto Lease Deposit and 3 Months Lease Expense||$3,000||$5,500|
|Computer Hardware Package||$3,500||$6,000|
|Real Estate, Utility Deposits and Three Months’ Rent||$4,000||$6,000|
|Fixtures, Furniture and Equipment||$2,500||$3,500|
|Permits and Licenses||$100||$1,000|
|Insurance Deposit and Three Months Insurance Expense||$2,200||$5,300|
|Training Expenses for Travel, Food and Lodging||$4,000||$5,000|
|Additional Funds-3 Months||$25,000||$33,000|
|Type of Fee||Amount|
|License Fee||3 – 6 ½% of gross sales except for “roll-in” sales. In addition, minimum license fees apply.|
|MAP Fee||$250 per month per Molly Maid franchise, not to exceed 2% of the total monthly gross sales for all of the Molly Maid franchises.|
|Local Marketing||$1 per Target Household Value per year; declines as Gross Sales increase, to a minimum of $0.15 per Target Household Value if criteria are met.|
|Internet Connection & Anti-Virus Software||The then current fee. The current fee is $89-159 per month for 1 account/user on 1 computer.|
|Software Systems Fee||$50 per week for the initial term of the Franchise Agreement.|
|Call Center Service||The then current fee. Presently, the current set-up fee is $99, plus $25 monthly fee, plus $15-$25 per booked clean or estimate.|
|Conventions and Regional Meetings and Additional Training.||The then current fee. Presently, the current Convention is $275-$425 per person. Franchisees who do not attend one convention every two years may be charged up to $1,000 for failure to attend.|
|Renewal Fee||$3,000 (or $2,000 if an e-renewal).|
|Transfer||$9,900 if the transfer is to a new franchise owner, $2,000 if the transfer is to an existing Molly Maid franchise owner, or $500 if the transfer is to the franchisee’s immediate family member. If the franchisee authorizes the franchisor to enlist a third part broker to locate the transferee, the franchisee must pay the then-current broker fee. All outstanding fees due prior to transfer.
Transferee must pay $6,000 for the transfer initial package.
|Change of Legal Entity Fee||$500|
|Failure to Maintain Insurance||The franchisor’s actual cost for insurance premiums and a reasonable fee for the expense we incur.|
|Interest||12% per annum or the maximum permitted by law on unpaid balances.|
|Late Fees||$10 per day.|
|Indemnification and Attorney’s Fees and Costs||varies according to loss.|
|Audit||Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees.|
|Indemnification||Will vary under the circumstances.|
|Territory Violation||Will vary depending on the type and severity of the violation.|
|Unapproved Suppliers||The franchisor’s actual out-of-pocket costs of inspection or testing.|
|Tax Reimbursement||Varies according to tax.|
|Dishonored Check or ACH Draft||$25|
|Franchisor Employee Training Fee||$7,500 or then current amount.|
|Key Accounts/ Management Fee||Up to 3% of total gross sales related to Key Account work, including gross sales that relate to Key Accounts; gross sales that are the result of any lead or any agreement developed by the franchisor’s Business Development Department or any similar group that is part of the company or is the company’s designee; gross sales for work that is dispatched from any call center operated by the company or designee; gross sales that are audited by the company or designee according to Key Accounts standards or gross sales that otherwise benefit from the company’s Key Accounts activities or management.|
The above information has been taken from the FDD of Molly Maid. Year of FDD: 2016
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