Franchising Since: 1984
Headquarters: Scottsdale, Arizona
Estimated Number of Units: 405
Franchise Description: The franchisor is MB Franchise Holdings, Inc. The franchisee will operate a business that provides supervised team cleaning services to homes and offers proprietary and other household products for sale using the trade name “Maid Brigade.” The cleaning services franchisees will offer include dusting, mopping, vacuuming, and tidying or any other services deemed necessary. Generally, two employees will perform cleaning services at each customer's home. The main duties of franchisees will be to instruct and supervise their employees and to promote and develop the franchised business.
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Territory Granted: The franchisor will grant franchisees a protected operating territory that includes a minimum of approximately 30,000 “qualified households.” Although income levels can vary somewhat from market to market, in general a qualified household is defined as a household with an annual income in excess of $100,000. Because the operating territory will be based on population demographics, it may be determined by municipal boundaries, natural boundaries, zip codes, postal codes, or other factors the franchisor determines. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. So long as franchisees are in full compliance with the Franchise Agreement, the franchisor will not operate, or grant a third party the right to operate, a Maid Brigade business under the marks from a physical location inside the operating territory except as otherwise provided in the FDD. In addition to the minimum royalty, rights to the operating territory depend on franchisees achieving a certain sales volume in their operating territory.
Obligations and Restrictions: The business must be personally supervised by a “designated manager” who must devote his or her full time and best efforts to the business. The franchisor may require that the designated manager be an owner of the business or the franchisor may allow franchisees, with prior written approval, to hire an individual (who is not an owner) to serve as the designated manager. Any person hired to serve as the designated manager must: (a) be approved by the franchisor; and (b) successfully complete initial training to the franchisor’s satisfaction. Franchisees must also designate an owner to serve as the “responsible owner.” Franchisees must offer the professional daytime, light housecleaning services authorized. Franchisees may not offer heavy janitorial services and any other services the franchisor does not authorize. In offering these services, franchisees may use only equipment, materials, supplies, uniforms, forms, and products that meet the franchisor’s specifications.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If certain requirements are met, franchisees can enter into two consecutive successor franchise agreements. Each renewal term is five years.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guaranty a franchisee’s note, lease or obligation. The franchisor offers a 10% discount for franchisees holding at least a 51% interest in the franchise if they are an honorably discharged veteran of any branch of the United States military and provide the required forms.
Estimated Initial Investment
Type of Fee | Low | High |
Initial Franchise Fee | $49,900 | $49,900 |
Onboarding Fee | $9,100 | $9,100 |
Computer Equipment | $1,000 | $2,000 |
Equipment, Fixtures, Other Fixed Assets Including Leasehold Improvements, Signs, Pre-Opening Expenses | $1,500 | $3,000 |
Initial Inventory Package | $4,600 | $4,600 |
Security Deposits and Other Prepaid Expenses | $2,500 | $4,000 |
Automobile (monthly) | $3,250 | $4,000 |
Insurance and Bond (monthly) | $1,000 | $2,000 |
Training Expenses | $2,000 | $2,000 |
Local Advertising – 3 Months | $13,500 | $13,500 |
Technology Fee – 3 Months | $216 | $216 |
MaidCentral Software – 3 Months | $2,050 | $2,050 |
Additional Funds – 3 Months | $30,000 | $40,000 |
ESTIMATED TOTAL | $120,616 | $136,366 |
Other Fees
Type of Fee | Amount |
Royalty | 6.9% of gross revenues, subject to reduction for higher volume and subject to weekly minimums. |
Ad Fund Contributions | 2% of weekly gross revenue. |
Local Client Advertising | A minimum of $4,000 per month. |
Local Employee Advertising | $500 per month. |
Call Center Fee | Up to $500 per month. |
Transfer Fee | Permitted Transfer: $0 or $1,500. Other Transfers: 50% of then-current initial franchise fee (reduced to 20% if buyer is an existing franchisee). |
Renewal Fee | 25% of then-current initial franchise fee. |
Audit Fee | Actual cost of audit (including travel expenses for audit team). |
Cooperative Advertising Fee | Fee set by us or the co-op (not to exceed local marketing commitment unless higher fee approved by 2/3 majority vote). |
Proprietary Items | Varies under circumstances. |
Services the Franchisor Provides to the Franchisee’s Customers | Varies under circumstances. |
Management Fee | Varies under circumstances but generally between 5%-10% of revenue earned during the period that the franchisor manages the franchisee’s business. |
Additional Assistance | Varies under circumstances but approximately $400 per day. |
Interest on Late Payments | The lesser of 2% over the franchisor’s bank's prime loan rate or the maximum amount permitted by law. The highest interest rate allowed by law in California for late payments is 10% per year. |
Late Fees on Late Payments | 10% of amount past due. |
Indemnification | Varies under circumstances. |
Costs and Attorneys' Fees | Amount of attorneys’ fees and costs the franchisor incurs. |
Insurance Reimbursement | Franchisees must reimburse the franchisor if it purchases insurance for them because they failed to do so. |
Technology Fee | Currently, $18 per week. |
Convention | Currently, $180 per attendee, plus travel and lodging expenses. |
Convention – Failure to Attend | Currently, $500. |
Testing New Suppliers or Items | The franchisor’s actual costs. |
Additional Households | $1 for each additional qualified household purchased. |
E-Water Generator | The current cost, currently ranges from $8,500 to $12,500. |
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