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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 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 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 100,000 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: 1,200

Investment Tables:
Initial Investment
Name of Fee Low High
Initial License Fee $12,500 $12,500
Initial Territory Fee $19,000 $95,000
Initial Equipment and Supply Package $16,500 $16,500
Initial Software License $950 $950
Office Security Deposit $500 $2,500
Computer Hardware $1,500 $5,000
Office Fixtures, Decorating & Furniture $1,000 $5,000
Auto Painting/Wrap $750 $2,250
Telephone Deposit $2500 $1,500
Insurance Deposit $2,200 $3,200
Signs $100 $3,000
Washer and Dryer $800 $2,000
Start-Up Professional Services $500 $3,500
Wages, Travel and Living Expenses During Corporate Training $2,950 $5,800
Additional funds – 3 months $22,200 $38,550
ESTIMATED TOTAL $81,700 $197,250
Other Fees
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 $1.20 per potential customer per calendar year until revenue for the previous calendar year exceeds $800,000. If the previous calendar year revenue exceeds $800,000, local advertising expenditures can be satisfied in one of three ways: 1.) $1.20 per potential customer for the calendar year; or 2.) a minimum investment of 6% of the previous calendar year's revenue; or 3.) current calendar year's revenues must grow a minimum of 8% over the previous calendar year's revenue.
Co-op Advertising Fees Amount will vary.
Audit Fees Amount incurred by franchisor to audit the franchise, but no less than $5,000
Transfer Fee $15,000
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.
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 –Full Time $95 per week;
$30 per sold quote;
$20 in-home estimate;
$7 per unsold quote;
$2 per operations call.
(Optional Service) National Sales Center Fees –Part Time $95 per week;
$30 per sold quote;
$20 in-home estimate;
$7 per unsold quote;
$2 per operations call.
Cost of Alternative Supplier Evaluation The franchisor’s costs which may vary.

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

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