Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on Maid Right’s Compliance with Guaranteed Gross Monthly Business Offered to Franchisees (2014 FDD)

by Franchise Chatter on January 10, 2015

in Franchise Earnings, Maid Franchise

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Highlights of Maid Right’s Item 19 Financial Performance Representations (2014 FDD)

  • Maid Right has developed a system under which independently owned and operated unit franchisees provide residential cleaning services and related services under the Maid Right name.
  • Your Initial Franchise Fee is based on the Initial Plan you want. The Initial Plan consists of Maid Right offering a stated amount of Guaranteed Gross Monthly Business.
  • Maid Right offers 7 different Initial Plans. Each Initial Plan represents a different amount of Guaranteed Gross Monthly Income. Guaranteed Gross Monthly Income is the total monthly revenues from any Customers that you service from time to time.
  • The Guaranteed Gross Monthly Business that you want for your franchise should not, however, be considered as the actual income or profit you will realize. Maid Right does not represent, warrant, or guarantee that any Customers will be profitable or that the Guaranteed Monthly Business that Customers are initially estimated to generate will be the actual Gross Billings that you realize from those Customers.
  • The Guaranteed Gross Monthly Business you actually achieve is affected by many factors such as:  the Guaranteed Gross Monthly Business being offered in installments during the stated time period; your rejecting, stopping service to, or losing a Customer; and the interval of time before any required replacement Customer is offered.
  • The quality of the services you perform and the efficiency with which you perform them also will affect your actual Guaranteed Gross Monthly Business.
  • Maid Right reviewed its compliance with Franchise Agreements on the amount, timeliness, and refund requirements for Guaranteed Gross Monthly Business offered to its unit franchisees. Maid Right reviewed all franchise sales made during its last completed fiscal year, and determined whether or not, as of the last fiscal year, Guaranteed Gross Monthly Business had been offered in compliance with the Franchise Agreement.
  • During its last fiscal year, Maid Right sold 5 unit franchises. Of those sold, as of the close of the fiscal year:

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