Two Maids Franchise Costs, Fees & FDD

Year Business Began: 2003

Franchising Since: 2013

Headquarters: Birmingham, Alabama

Estimated Number of Units: 120

Franchise Description: The franchisor is Two Maids Franchising, LLC. Home Franchise Concepts, LLC is the franchisor’s immediate parent company. Two Maids franchises specialize in residential house cleaning in a designated territory. The franchisor also extends the franchise offering to those persons wishing to convert their existing residential cleaning business to a Two Maids franchised business.
Training Overview: Training consists of 10 days of on-the-job and classroom sessions. Training will consist of five days in Jefferson County, Alabama or such other location as the franchisor may designate, and five days in the franchisee’s office or at another location within the franchisee’s territory. It is mandatory that the majority owner and/or operating partner complete all 10 days of initial training. Upon reasonable notice and at no charge to franchisees, the franchisor may require franchisees or their designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers relevant or appropriate to the successful operation of the system. At its option, the franchisor may hold a convention of franchisees and other meetings to discuss topics which the franchisor determines to be appropriate and in the best interests of the system.

Territory Granted: During the term of the Franchise Agreement, the franchisor will grant franchisees a protected territory. The franchisor will not establish another franchised business in the territory that sells residential cleaning services using its system and marks. The franchisor will not compete with franchisees in their territory from outlets that it owns using its system and marks. The territory will be described by United States Postal Service ZIP Codes in the Franchise Agreement. Each territory will consist of a minimum of 50,000 households.

Obligations and Restrictions: The franchisor prefers franchisees who plan to participate actively in the direct operation and daily affairs of the franchised business. If franchisees do not operate the franchised business themselves, they must employ at least one manager on a full time basis who meets the requirements. The franchisor requires the franchisee to be a company or a corporation by the time business commences. Franchisees may offer and sell in the franchised business only goods and services that the franchisor has authorized them to sell. Franchisees must sell all goods and services authorized by the franchisor and abide by any additions, deletions and modifications.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for two consecutive five-year terms if requirements are met.

Financial Assistance: If franchisees meet the credit standards, the franchisor’s will, at the franchisee’s request, provide financing for the initial franchise fee and part of the initial territory fee over a five-year period at an annual interest rate of 10%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$19,950	$19,950
Initial Territory Fee	$40,000	$40,000
Lease, Utility and Security Deposit	$2,500	$7,500
Leasehold Improvement Decorating Cost	$4,000	$10,000
Fixtures, Furnishings and Equipment, Computer System, Software, Fax, Printer, Phones	$2,500	$9,800
Uniforms	$750	$750
Telephone/Communication System	$140	$140
Opening Inventory	$1,000	$2,000
Business Licenses	$100	$500
Insurance	$2,500	$4,000
Legal and Accounting	$0	$2,500
Initial Training Expenses	$750	$2,250
Signage – Interior/Exterior	$250	$1,500
Local Advertising Start-Up Program Fee ($3,000 per month for first three months)	$9,000	$9,000
Additional Funds – First 3 Months	$10,000	$40,000
ESTIMATED TOTAL	$93,440	$149,890

 

Other Fees

Type of Fee	Amount
Royalty	The greater of: (a) 7.0% - 4.0% of gross revenue for the immediately preceding month or (b) $500 per month for the first year and $1,500 per month thereafter.
National Advertising Fund Payment	The greater of 2% of gross revenue for the immediately preceding month or $250 per month for the first year and $500 per month thereafter.
Local Advertising Start-Up Program Fee	During the first 6 months of operation, franchisees must spend at least $3,000 each month on advertising media that are directed and executed by the franchisor or its designee.
Local Advertising Services Program Fee	Currently $2,500 per month minimum, subject to change. The franchisor is entitled to retain a management fee of the greater of $300 or 10% of the monthly ad spend.
Technology Fee	Currently $650 per month per territory.
Optional National Sales Center Fee	Currently minimum of $100 per month then additional $200 per month for every $1,250 of work scheduled for the month.
Additional Territory Fee	An amount equal to the then-current initial Territory Fee if franchisees buy an additional territory in the future.
National Account Fees	The franchisor negotiates each program individually with the national account.
Encroachment Payment	100% of the gross sales in another franchisee’s territory.
Fees on Transfer	If selling to a new franchisee, the greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory.
Transfer Lead Referral Fee	The then-applicable lead referral fee, currently $15,000, or the amount of any broker fees that the franchisor must pay a third party (not an employee of the franchisor).
Renewal Fee	$5,000
Insufficient Funds or Late Payment Fee	Currently $300, subject to change.
Convention Fee	Currently $750 plus travel, accommodation and some meals. Fee will vary depending on venue and location but will not exceed $2,000 annually.
Optional Meetings and Trainings	As determined by the franchisor, but generally $100 - $1,500 depending on venue and mode of delivery plus travel, accommodation and some meals.
Additional Training Requested By the Franchisee	Currently $250 per day, plus travel and expenses.
Audit	Cost of inspection or audit.
Insurance	Franchisees must reimburse the franchisor’s costs.
Costs and Attorneys’ Fees	Varies.
Indemnification	Varies.

The above information has been compiled from the FDD of Two Maids. Year of FDD: 2024.