Mosquito Squad Franchise Costs, Fees & FDD

Year Business Began: 2004

Franchising Since: 2005

Headquarters: Columbia, Maryland

Estimated Number of Units: 245

Franchise Description: Mosquito Squad Franchising SPE LLC is the franchisor. The franchisor’s direct parent company is AB Assetco LLC. Authority Brands, Inc. is an indirect parent. Mosquito Squad franchises offer outdoor pest elimination and control services and equipment, including the sales, installation, and servicing of outdoor misting systems, barrier treatment services, special event treatments, tick control, and other pest elimination and control systems for both residential and commercial use.
Training Overview: Before the franchised business opens, the key person and any owners that the franchisor designates must attend and successfully complete an initial training program. The training program includes three weeks of virtual online training and five days of in person training, depending on the size of the training class. The initial training program is usually conducted at the franchisor’s office located in Macon, Georgia as of the date of this disclosure document, but the training course may be held elsewhere in the future in the franchisor’s discretion. After the franchised business opens, the franchisor will make available, at the time(s) and location(s) it designates, such other required and optional training programs as it deems necessary and appropriate.

Territory Granted: The franchise is granted for the approved location only. Franchisees may not relocate their business premises without prior written approval. Franchisees will have a protected territory during the term of the Franchise Agreement, provided franchisees are in full compliance with the terms of the Franchise Agreement, including certain minimum performance requirements and their obligation to primarily service customers in their territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate franchised businesses within the territory, except as described in the FDD. For a standard territory, the franchisor generally grants only one franchise per territory with a population between 350,000 and 500,000 people (or incremental portion thereof) in the designated geographical location.

Obligations and Restrictions: Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the franchised business (the key person). The key person need not be an owner of the franchised business. However, the key person must complete the initial training program and must work on premises at the franchisee’s business office. Spouses of franchisees will be required to sign a Spouse Acknowledgement, by which the spouse acknowledges that the franchisor is relying on all assets of the guarantor, including jointly owned marital property, in accepting the guarantor’s obligations. Franchisees are required to offer and sell all products and services that the franchisor designates as required items for Mosquito Squad businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew the franchise for one additional term of 10 years if they meet certain conditions.

Financial Assistance: In its discretion, the franchisor may permit franchisees to finance up to 75% of the franchise fee and any applicable additional population fee rather than paying the entire amount in a lump sum when franchisees sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers, referrals under the standard referral program or conversion referral program, or any other third party referral sources. Except as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$50,000	$50,000
Business Outfitting Fee	$9,500	$9,500
Operations Outfitting Fee	$2,000	$2,000
Truck Outfitting Fee	$4,000	$9,500
Travel and Living Expenses While Training	$1,000	$1,500
Vehicle	$0	$11,000
Vehicle Signage	$2,400	$3,500
Storage Facility for Inventory and Equipment	$0	$3,600
Computer Systems	$800	$2,000
Software	$355	$630
Telephone Services	$400	$700
Insurance	$7,000	$7,500
Professional Fees	$1,070	$2,140
Leasehold Improvements and Lease Deposits	$0	$0
Additional Funds – 3 months	$83,855	$116,805
ESTIMATED TOTAL (does not include real estate costs)	$162,380	$220,375

Other Fees

Type of Fee	Amount
Royalty Fee	Beginning on the 13th month following the original opening date, the royalty fee is calculated using the greater of: (a) the applicable percentage as determined by gross revenue (between 8% and 10%), or (b) the minimum royalty (between $650 and $3,000 per month), as determined by the period of time following the original opening date of the franchised business.
Brand Fund Contribution	Year 1: $150 per month Year 2: $200 per month Year 3: $250 per month Year 4: $300 per month Year 5: $350 per month Year 6: $400 per month Year 7 through balance of term: $450 per month
Local Marketing	The greater of: (i) $35,000 per year; or (ii) 10% of the preceding calendar year’s gross revenue, up to an annual cap of $50,000.
Key Account Programs	Will vary under circumstances and may be determined based on number of participating franchisees or other factors.
Call Center Fee	Currently $2 to $3 per minute. Paid to the franchisor’s designated third-party vendor.
Technology Fees	The specific services and apps and the applicable fees will vary over time.
Brand Fund Materials	The franchisor’s costs.
Additional Opening Support Fee	A reasonable fee, up to $500 per day, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel.
Training Fees – Remedial and Optional Training	$100 per trainee per day.
Annual Conference	Currently, $99 to $350 per registration, depending on the timing of the registration.
Conference Non-Attendance Fee	$500 for the missed conference and then $2,000 for any conference missed consecutively thereafter.
Service Deficiency Fee	The franchisor’s costs.
Renewal Fee	$5,000
Transfer Fee	Generally, $10,000. However, if the proposed transferee was referred by a third-party (e.g., a broker) with whom the franchisor has a referral arrangement, then franchisees must pay the franchisor an additional fee equal to the amount owed under that referral arrangement. If the franchisor identifies the prospective purchaser, then in addition to the $10,000 fee, franchisees must pay the franchisor the greater of: (a) $15,000; (b) 3% of the total purchase price; or (c) its actual costs to identify the prospective purchaser.
Change of Ownership Fee	Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) applicable training fees for the individuals the franchisor requires to attend training.
Procurement of Insurance	Cost of insurance, plus reasonable fee of up to 25% of total insurance premium cost.
Vendor Review	The franchisor’s reasonable costs, plus the reasonable travel, meal, and lodging expenses of the vendor review personnel.
Management Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Step In Fee	Up to $500 per day until the franchisee cures the default, plus the franchisor’s costs and overhead.
Interest	12% per annum or the maximum rate permitted by applicable law, whichever is less.
Late Fee	$100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence.
Insufficient Funds Fees	$50 or the amount the bank charges us due to the insufficient funds, whichever is greater.
Indemnity for Tax Withholding	Amount of any penalties, interest, and expenses the franchisor incurs.
Audit Costs	The franchisor’s costs and expenses of conducting audit, including travel and lodging.
Enforcement Costs	The franchisor’s actual costs and expenses.
Defense Costs	The franchisor’s actual costs and expenses.
Indemnification	The franchisor’s actual costs and expenses.
Liquidated Damages	The greater of: (i) two years of royalty fees (calculated as the average royalty fees per payment period in the year preceding the termination of the Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $50,000.
De-Identification Fee	The franchisor’s costs.

The above information has been compiled from the FDD of Mosquito Squad. Year of FDD: 2025.
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