Detailed Estimates of Molly Maid Franchise Costs Based on Item 7 (Estimated Initial Investment) of Molly Maid’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $14,900
- Estimates are based on a new Franchisee buying their first Franchise. However, the Initial Franchise Fee is waived for additional Franchises awarded to you.
- You may qualify for a discount on the Initial Franchise Fee.
- The Initial Franchise Fee is not refundable.
- You must pay the Initial Franchise Fee in full when you sign the Franchise Agreement.
- The franchisor may agree to finance a portion of the Initial Franchise Fee, depending on your credit-worthiness, the collateral that you have available, and the franchisor’s then-current financing policies. Monthly payments depend on the amount financed.
- The Initial Franchise Fee is waived for renewal terms; however, you will need to pay the renewal fee.
2. Territory Fee: $45,000 to $65,000
- The Territory Fee is equal to $1 per Target Household Value.
- The franchisor reserves the right to adjust the Territory Fee at its discretion as it deems appropriate to account for market conditions, urban and rural exceptions, remnant inventory, and expansions.
3. Initial Package Fee: $10,000
- You must purchase the Initial Package from the franchisor.
- The items included in the Initial Package may change to reflect the changing needs of the Business in accordance with System procedures.
- There are no refunds of the Initial Package Fee, except if you attend the first convention that is scheduled to occur after your successful completion of the Initial Training Program, the franchisor will refund you the Convention Allowance after you attend. The Convention Allowance is to be used primarily toward the registration fee, but any remaining balance may be applied to your cost of travel, lodging, and meals. If you do not attend the convention within the required time period, the Convention Allowance will not be refunded to you.
4. Auto Lease Deposit and 3 Months’ Lease Expense: $3,000 to $5,500
- Your business must begin operation with a minimum of two marketing/service vehicles that meet the franchisor’s System standards and specifications and have the approved Marks.
- One vehicle is for performing in-home estimates and one vehicle is for the use of your team. As your business grows, you will need additional vehicles.
- The cost of purchasing a new vehicle typically ranges from $15,000 to $20,200, plus applicable taxes. The cost for leasing a new vehicle depends on the vehicle you choose from the franchisor’s list of approved vehicles, its options, dealer terms, length of the lease, and emission control requirements.
- When leasing, the amount of deposit will vary depending upon supplier pricing strategies, promotions, and willingness to provide start-up businesses with more advantageous pricing than they typically offer individuals leasing a single vehicle.
5. Computer Hardware Package: $3,500 to $6,000
- Initial computer hardware is included as part of the Initial Package.
6. Leasehold Improvements: $0 to $2,000
- Franchise owners typically operate the Business from leased space. The cost of construction or leasehold improvements where you lease space will vary depending upon the amount of construction, renovation, construction costs, and how many of the costs will be borne by the lessor.
7. Real Estate, Utility Deposits, and 3 Months’ Rent: $4,000 to $6,000
- As required by your lessor and utility companies.
8. Furniture, Fixtures, and Equipment: $2,500 to $3,500
- Estimated cost for office equipment, fixtures, and furnishings, including a washer and dryer, desks, chairs, a file cabinet, telephone system, facsimile machine, wastebaskets, and other equipment and supplies necessary to begin the operation of the Business.
9. Permits and Licenses: $100 to $1,000
- As required by local and state laws and regulations.
10. Insurance Deposit and 3 Months’ Insurance Expense: $2,200 to $5,300
- Typically, insurance companies require start-up businesses to pre-pay a portion of their premiums.
11. Training Expenses for Travel, Food, and Lodging: $4,000 to $5,000
- Out-of-pocket travel expenses vary depending on your proximity to the Molly Maid home office or the designated training center, the type of transportation you use, and your individual expenses during the Initial Training Program.
- For the purposes of this line-item, on the low end the franchisor has estimated the expenses for 1 person, and on the high end, for 2 individuals sharing one hotel room.
12. Additional Funds for 3 Months: $25,000 to $33,000
- This line-item estimates your initial start-up expenses for the first 3 months of operations only, not including those expenses identified separately in the table. It includes payroll costs for operation and customer service employees, gasoline and general auto maintenance, Internet, and other general business expenses.
- The estimate of additional funds does not include an owner’s salary or draw.
- These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.
13. Total: $114,200 to $157,200
- The franchisor has relied on its management team’s general experience with franchising in the United States along with the experience of its franchisees to compile these estimates.