The Maids
Date of Incorporation: 1979
Franchising Since: 1980
Address: Omaha, Nebraska
Business Description: The franchisor operates 'The Maids' household maintenance and home services business. The business provides efficient household cleaning services for people who lack the time or desire to clean their home on a regular basis. The Maids Team Cleaning Approach uses four-person team cleaning techniques to improve profitability and efficiency.
Franchise Offer: The franchisor grants the personal right and license to establish and operate a Maids Business, providing household maintenance, cleaning and services, within a prescribed territory. Conversion franchises are also granted to qualified persons or entities who have been engaged in a household maintenance and service business.
Financial Assistance: The franchisor may offer financing to qualified prospective franchisees for up to 75% of the Initial Franchise Fee. In addition they may offer, financing to qualified existing franchisees that have been in business for a minimum of 18 months, of up to 100% of the Initial Franchise Fee for the purchase of expansion Territories. Except as stated above, the franchisor does not provide any direct or indirect financing.
Training and Assistance: Training includes a pre-opening program (Business Set-Up) to teach the franchisee about The Maids Business System and the operation of a The Maids Business and coach the franchisee through the set up of the business. The franchisee will need to invest a minimum of 20 hours a week for seven weeks prior to the opening of the Business to complete the Business Set-Up agenda. Once the Business Set-up is completed, the franchisor will provide up to nine days, over two consecutive weeks of training in Omaha, Nebraska for the franchisee and a minimum of two additional people (one will attend administrative and the other will attend technical break-out sessions during training), to teach and familiarize the methods and procedures of operating a The Maids Business. Once The Maids Business is operating, The Maids will provide a training program (Power Training) that consists of an onsite visit by a technical trainer to provide on the job training of the first team of 4 team members. Prior to Power Training team members are required to complete team member training and certification online. Additional training and coaching is also available.
Territory: The franchisee will receive an exclusive territory. The territory is approximately 10,000 households and is defined by population, relative affluence, geography of the area, and other demographic data including age, location and income.
Term of Agreement and Renewal: The term of the franchise is 20 years, with an option to renew for the then-current standard agreement.
Obligations and Restrictions: The franchisee does not have to participate in the operation of their The Maids Business. The franchisee may designate a manager for the position, provided that the manager has completed the training program. The franchisee may only sell the products and services the franchisor specifically approves in writing.
Estimated Number of Units: 1,100
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Fees | ||
| Initial License Fee | $10,000 | $10,000 |
| Initial Territory Fee | $28,500 | $28,500 |
| Initial Equipment and Supply Package | $15,100 | $16,100 |
| Initial Software License | $2,895 | $4,895 |
| Subtotal | $56,495 | $59,495 |
| Start-up costs due others | ||
| Office Security Deposit | $700 | $1,000 |
| Computer Hardware | $3,000 | $5,000 |
| Office Fixtures, Decorating & Furniture | $2,500 | $3,500 |
| Auto Painting | $750 | $1,500 |
| Telephone Deposit | $100 | $200 |
| Insurance Deposit | $1,500 | $2,500 |
| Signs | $500 | $1,000 |
| Washer and Dryer | $800 | $1,000 |
| Start-Up Professional Services | $500 | $1,500 |
| Wages, Travel and Living Expenses During Corporate Training and Field Training | $4,900 | $8,050 |
| Subtotal | $15,250 | $25,250 |
| Operating Expenses (First 3 months) | ||
| Additional funds - 3 months | $20,800 | $35,500 |
| Subtotal | $20,800 | $35,500 |
| Grand Total | $92,545 | $120,295 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Continuing Fees | 3.9% to 6.9% of Gross Revenues (Minimum continuing fees apply) |
| Conversion Franchisee Continuing Fees | 2.4% to 6.9% of Gross Revenues (Minimum continuing fees apply) |
| Advertising Fee | 2% of Gross Revenues |
| Conversion Franchisee Advertising fee | ½% to 2% of Gross Revenues |
| Local Advertising Expenditures | $1.20 per potential customer per year |
| Co-op Advertising Fees | Amount will vary |
| Audit Fees | Amount incurred by franchisor to audit the franchise |
| Transfer Fee | $6,000 |
| Collection Costs for Unpaid Fees | Amount the franchisor incurs to collect fees |
| Service Charge | $75 for each payment not paid within 10 days after due date |
| Interest Charges for Unpaid Fees | 18% per annum or the maximum legal rate allowable in the state in which The Maids® Business is located |
| Additional Training and Consulting Services Provided by franchisor | Currently $500 per day plus travel expenses |
| 'The Maids International' National Convention | Currently $350 for Registration Fee |
| On-Site Emergency Response Service Provided by franchisor | Currently $250 to $500 per day plus expenses |
| Renewal Fee | 10% of the then-current franchise fee |
| Annual Software Licensing Fee | $350 per year for single user. Subject to change with 30 days’ notice. |
| Corporate Training Fees for New Manager | Currently $600 per person plus expenses |
Date of FDD: 2011
The above information has been compiled from the FDD of The Maids along with online sources.
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