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Mosquito Squad Franchise Costs & Fees

Date of Incorporation: 2004
Franchising Since: 2005
Headquarters: Richmond, Virginia

Business Description: Mosquito Squad Franchising Corporation is the franchisor. Mosquito Squad business, which offers certain outdoor pest control services and equipment, including the sales, design, installation and servicing of outdoor misting systems, barrier treatment services, and other pest elimination and control systems for both residential and commercial use.

Franchise Offer: The franchisor offers franchises for the operation of outdoor pest control businesses under the “Mosquito Squad” service mark, and other trademarks, trade names, service marks and logos it periodically designates.

Financial Assistance: The franchisor makes optional financing available to qualifying franchisees. If franchisees meet the franchisor’s qualifications, it may finance up to 50% of the Initial Franchise Fee for up to 12 months, provided franchisees sign the Promissory Note. Other than as described, the franchisor does not offer direct or indirect financing, do not guarantee franchisees’ loans, lease or other obligations, and does not receive payments or other consideration for the placement of financing. The franchisor reserves the right to terminate its financing program at any time, offer different terms or assist franchisees in obtaining financing in the future.

Training and Assistance: The franchisor provides an initial training program lasting generally between 3.5 to 4.5 business days. The initial training program is usually conducted at the franchisor’s office located in Richmond, Virginia, but the training course may be held elsewhere in the future in its discretion. Under the Franchise Agreement, before franchisees begin operating their Outdoor Pest Control Business, they or, if they are not an individual, a “Designated Business Manager” must attend and successfully complete to the franchisor’s satisfaction the initial training program. The franchisor may present seminars, conventions or continuing development programs for the benefit of franchisees. At this time, franchisees attendance is voluntary, but is strongly recommended and considered a necessity.

Territory: Franchisees will be granted a Territory in which to sell the Products and Services they are authorized to sell under the Franchise Agreement. The Territory is based on demographics and other characteristics including population density, average income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. For a Standard Territory, the franchisor will use commercially reasonable efforts to grant only one license to a franchisee per 350,000 people (or incremental portion thereof) in the designated geographical location and it will consider granting a Micro Market Territory for areas that fall below the Population Limit.

Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If franchisees wish to do so, and they satisfy the pre-conditions to obtaining a Successor Franchise, the franchisor will offer them the right to obtain an additional term of for a period of time equal to the then-current initial term (but no less than 5 years).

Obligations and Restrictions: If franchisees are an individual, they must directly supervise the Outdoor Pest Control Business at the franchised location. If franchisees are a business entity, the direct, on-site supervision must be done by a Designated Business Manager. The Designated Business Manager is not required to own a beneficial interest in the business entity. Franchisees must refrain from using or permitting the use of their Outdoor Pest Control Business for any other purpose or activity at any time without first obtaining the franchisor’s written consent. Franchisees must sell or offer for sale only those Services and Products which are authorized by the franchisor and which meet its standards and specifications.

Estimated Number of Units: 190

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $1,250 $27,500
Travel and Living Expenses While Training $500 $1,000
Tools and Equipment $800 $1,700
Computer Hardware and Software $800 $2,000
Inventory $1,200 $3,000
Tradeshow Booth $2,500 $2,500
Storage Facility for Inventory and Equipment $0 $375
Vehicle $0 $2,250
Vehicle Signage $1,300 $1,800
Initial Marketing Expenses (3 months) $5,000 $20,000
Additional Funds (3 months) $2,500 $7,500
ESTIMATED TOTAL $15,850 $69,625
Other Fees
Type of Fee Amount
Monthly Brand Licensing Fee STANDARD TERRITORY:
Year 1: $400 per month
Year 2: $650 per month
Years 3: $900 per month
Year 4: $1,150 per month
Years 5: $1,400 per month
Year 6: $1,650 per month
Year 7 and balance of Term of Franchise Agreement and any Interim Period: $1,900 per month.

MICRO MARKET TERRITORY:
Year 1: $300 per month
Year 2: $400 per month
Years 3: $500 per month
Year 4: $600 per month
Years 5: $700 per month
Year 6: $800 per month
Year 7 and balance of Term of Franchise Agreement and any Interim Period: $900 per month.
Individual Advertising Investment $30,000 per year minimum with at least $35,000 recommended.
National Branding & Marketing Fee Year 1: $100 per month
Year 2: $150 per month
Year 3: $200 per month
Year 4: $250 per month
Year 5: $300 per month
Year 6: $350 per month
Year 7 and balance of Term of Franchise Agreement and any Interim Period: $400 per month.
Transfer Fee $2,500
Audit Cost of audit plus late fee of 1.5% interest per month on understatement.
Fee for Lost Manuals $500
Successor Franchise Fee 10% of the then-existing Initial Franchise Fee.
Insurance At a minimum, comprehensive general liability coverage and products liability.
Indemnification Will vary under circumstances.
Cost of Enforcement or Defense All costs including accounting and attorneys' fees.
Interest Lesser of 1 1/2% per month or highest rate of interest allowed by law.
Late Report Fee $100 per violation.
Technology Maintenance Expense The then-current cost of purchasing required hardware and software upgrades. The estimated range of costs are $0- $5,000
Seminars, Conventions or Programs Franchisees must pay their expenses, conference fees, if any, as well as the expenses their Designated Business Manager and employees incur in attending these meetings. The estimated range of costs is $500-$2,500 plus materials estimated at $50
Software License and Support Fee The then-current monthly software fee ranging between $30-$250 per month; currently $40 per license per month.
Fees to Evaluate an Alternative Supplier Currently, we do not charge any fees to evaluate an alternative supplier.
Development Schedule Extension Fee $5,000 per Outdoor Pest Control Business for an extension of up to 6 months.
Development Agreement Transfer Fee 10% of the Territory Fee.

The above information has been taken from the FDD of Mosquito Squad. Year of FDD: 2016

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