Molly Maid Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Initial Franchise Fee: $14,900
- Estimates are based on a new Franchisee buying its first Franchise. However, the Initial Franchise Fee may be waived for additional Franchises awarded to you if you are an existing Franchisee purchasing additional territory either pursuant to an Option to Purchase Agreement or under a new Franchise Agreement. If you are buying an existing unit through a transfer and a new unit at the same time, the Initial Franchise Fee will be waived for the new unit.
- You may qualify for a discount on the Initial Fees.
- The Initial Fees are not refundable.
- You must pay the Initial Fees in full when you sign the Franchise Agreement.
- The franchisor may agree to finance a portion of the Initial Fees, 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 Fees are waived for renewal terms; however, you will need to pay the renewal fee.
2. Territory Fee: $45,000 to $65,250
- The Territory Fee is equal to $1 per TH in your territory.
- The franchisor reserves the right to adjust the Territory Fee as it deems appropriate to account for market conditions, urban and rural exceptions, remnant inventory, and expansions.
3. Initial Startup Package: $7,000 to $7,500
- An itemized list of what comprises the Initial Startup Package is described in the Manuals. You must purchase each item prior to attending training.
- The franchisor may change the items included in the Initial Startup Package from time to time to reflect the changing needs of the Business in accordance with Molly Maid’s System procedures and changes in suppliers and/or product specifications.
- There are no refunds of the Initial Startup Package Fees, which are payable directly to the vendors Molly Maid designates.
4. Software Enrollment and Training Fee: $1,500
5. 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 $18,000 to $22,000, 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.
6. Computer Hardware: $2,000 to $4,000
- Initial computer hardware is purchased directly by the franchisee and is not included in the Initial Startup Package.
7. Leasehold Improvements: $1,000 to $5,000
- 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.
8. Real Estate, Utility Deposits, and 3 Months’ Rent: $4,000 to $6,000
- As required by your lessor and utility companies.
9. 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, wastebaskets, and other equipment and supplies necessary to begin the operation of the Business.
10. Permits and Licenses: $100 to $1,000
- As required by local and state laws and regulations.
11. 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.
12. 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.
- Molly Maid may conduct a portion or all of the training program remotely/virtually, in which case you will not incur travel expenses for any remote/virtual training.
13. Professional Fees: $0 to $5,000
- These are estimates for fees that will be charged by your attorney to review the Franchise Agreement and other documents, to advise you, and to incorporate a business entity on your behalf if desired. This estimate also includes fees charged by an accountant and/or financial advisor.
- These amounts are only estimates and your actual fees may vary significantly depending on the specific work you request, the advisors you select, and the rates for professional fees in your area.
- Molly Maid strongly recommends that you seek the assistance of professional advisors when evaluating this franchise opportunity and the franchise documents. It also is advisable for these professionals to review any lease or other contracts you will sign as part of starting the Business.
14. Additional Funds for 3 Months: $40,000 to $50,000
- 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.
15. Total: $127,200 to $184,450
- 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.