The Maids Home Services Franchise Cost & Fees
Date of Incorporation: 1979
Franchising Since: 1980
Headquarters: Omaha, Nebraska
Business Description: The franchisor is The Maids International, Inc. The Maids businesses provide household maintenance and cleaning services.
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, in its sole discretion, may offer financing to new and existing franchisees, of up to 100% of the Initial Franchise Fee for the purchase of territories. Financing is not offered for any other purpose either in connection with the establishment or the operation of a The Maids franchise. Except as stated, the franchisor, its agents, and its affiliates offer no financing arrangements, and the franchisor, its agents, and its affiliates do not receive payment or other consideration for the placing of financing, or do not guaranty any note, lease or obligation the franchisee enters into for The Maids Business. The franchisor is eligible for streamlined and expedited loan processing through the Small Business Association.
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 setup of the business. The franchisor expects the Business Set-Up to take franchisees 5-7 weeks to complete depending on the amount of time they devote to training. Once franchisees have completed the Business Set-up, the franchisor will provide up to 8 days, over 2 consecutive weeks of training in Omaha, Nebraska for franchisees and a minimum of one additional person, to teach and familiarize you with the methods and procedures of operating a The Maids Business. Prior to franchisees opening their The Maids Business, the franchisor will provide a training program that consists of an onsite visit by a technical trainer to provide on the job training for their manager. At the franchisor’s discretion, online training may be provided for management staff via webinar at no charge. The franchisor may also provide additional requested on-site training for franchisees or their manager during the term of the Franchise Agreement (the franchisor reserves the right to impose a charge). Franchisees must attend each of The Maids National Conventions which held periodically but not more than once a year.
Territory: The franchisor will work with franchisees to customize their Designated Market Area. The Designated Market Area will consist of two or more Franchise Territories. Designated Market Areas range in size from approximately 20,000 to 70,000 households. The Designated Market Area will be defined by hard boundaries, such as streets, highways, rivers, or other identifiable physical boundaries. A Franchise Territory is approximately 10,000 households which is defined by population, relative affluence, geography of the area, and other demographic data including age, location and incomes of $75,000, $100,000, $150,000, $200,000 and above. The number may be higher or lower based on the local demographic data of the Territory. So long as the Franchise Agreement is in effect, the franchisor may not open any other The Maids Businesses, company-owned or franchised, within the Designated Market Area without the franchisee’s written permission.
Term of Agreement and Renewal: The term of the franchise is 20 years with an option to renew for the then-current standard Franchise Agreement, if requirements are met.
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: 1,250
|Name of Fee||Low||High|
|Initial License Fee||$12,500||$12,500|
|Initial Territory Fee||$19,000||$66,500|
|Initial Equipment and Supply Package||$11,750||$12,750|
|Initial Software License||$950||$950|
|Office Security Deposit||$500||$2,500|
|Office Fixtures, Decorating & Furniture||$1,000||$5,000|
|Washer and Dryer||$800||$2,000|
|Start-Up Professional Services||$500||$3,500|
|Wages, Travel and Living Expenses During Corporate Training||$2,400||$5,250|
|Additional funds – 3 months||$21,900||$38,450|
|Type of Fee||Amount|
|Continuing Fees||3.9% to 6.9% of Gross Revenues (minimum continuing fees apply).|
|Technology Fee||Currently .25% of Gross Revenues, may be increased to 1% of Gross Revenues, with a cap of $15,000 per franchisee per year.|
|Advertising Fee||2% of Gross Revenues.|
|Local Advertising Expenditures||$45,000 minimum per year for the first two years of the Franchise Agreement.|
|Audit Fees||Amount incurred by franchisor to audit the franchise, but no less than $5,000|
|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.|
|ACH Draft - Insufficient Funds||$25|
|The Maids International’ National Convention||Currently $450 for Registration Fee.|
|Requested Training and Consulting Service Provided by Franchisor||Currently $500 to $1,000 per day plus expenses.|
|Renewal Fee||10% of the then-current Initial Territory Fee.|
|Software and Support Fee||Currently $105 to $265 per month (Additional $30 per month per additional office) based on prior calendar year’s annual Gross Revenues. Subject to change with 30 days’ notice.|
|Corporate Training Fees for New Manager||Franchisee is responsible for travel, lodging and other incidental expenses.|
|(Optional Service) National Sales Center Fees||$55 per week;
$35 per sold quote;
$10 in-home estimate;
$7 per unsold quote;
$1 per operations call.
|Cost of Alternative Supplier Evaluation||The franchisor’s costs which may vary.|
|Territory Infringement Fee||Varies depending on the type and severity of the infringement.|
|Costs and Attorneys’ Fees||Will vary under the circumstances.|
|Indemnification||Will vary under the circumstances.|
The above information has been taken from the FDD of The Maids. Year of FDD: 2016
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