Detailed Estimates of You’ve Got MAIDS Franchise Costs Based on Item 7 (Estimated Initial Investment) of You’ve Got MAIDS’ 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $6,999
2. Protected Territory Fee: $13,800 to $55,200
- The protected territory is comprised of Qualified Households. First time franchisees must purchase a minimum of 20,000 Qualified Households for $0.69 each.
- The typical You’ve Got MAIDS franchise encompasses approximately 40,000 Qualified Households.
3. Initial Technology Fee: $595
- The Initial Technology Fee is utilized for the initial set-up and furtherance of technology for the franchise system, including, but not limited to the intranet portal, email system, training software, intranet set-up, software support, and on-going research and development of technology systems to drive efficiencies in accounting and management of leads and business (such as Customer Relationship Management systems).
4. Real Estate/Office: $0 to $1,000
- You must establish and maintain an office outside of your home if your Protected Territory is greater than 20,000 Qualified Households. If your Protected Territory is less than or equal to 20,000 Qualified Households, you may operate out of your home, subject to applicable local rules and ordinances.
- The franchisor must approve the size, rent, and location of any office outside of your home.
5. Computer Equipment: $600 to $1,200
- The estimate includes a connection charge to a high-speed Internet provider that provides a minimum of 1.5 Mbps up and down.
- The franchisor will provide you with a list of computer equipment you will need in order to operate the management software program and otherwise operate your business. You do not purchase the computer equipment from the franchisor.
6. Automobile: $500 to $700
- This estimate includes the cost of two car loan payments which includes automobile wraps but does not include ongoing gas and maintenance expenses, which you must normally pay on a monthly basis.
- If you purchase the automobile(s) you use, your initial investment will be significantly greater than the table shows.
- The franchisor requires that your automobiles display the company’s proprietary car-wrap or paint and decal that it specifies from time to time.
- As your business grows, you will need to add a relatively new and clean proprietary wrapped automobile for each new team that you employ.
7. Equipment, Fixtures, Other Fixed Assets, including Leasehold Improvements, Signs, Pre-Opening Expenses: $1,500 to $2,543
- Your costs will vary depending on the size, configuration, and condition of the furniture, supplies, signs, and fixtures you select and the location of your office.
8. Cleaning Equipment: $1,300 to $1,800
- This represents the uniforms, cleaning equipment, cleaning supplies, and cleaning solutions you will purchase from third party vendors to outfit one team of three maids. You are not required to purchase equipment from the franchisor.
9. Security Deposits and Other Prepaid Expenses: $1,000 to $2,000
- Your landlord will generally require you to pay the first month’s rent and a security deposit equal to one month’s rent prior to taking occupancy. Some landlords also require the last month’s rent to be prepaid.
- Utility companies and rental agencies will probably require you to pay deposits and prepaid expenses, including prepaid expenses relating to the furniture, fixtures, and equipment you may lease.
10. Insurance and Bond: $500 to $2,000
- The franchisor currently requires you to maintain the following insurance coverage: (1) commercial general liability insurance; (2) comprehensive and collision insurance on the automobile used in the operation of the Franchised Business; (3) workers’ compensation insurance; and (4) a surety bond in the amount of $10,000 per employee.
11. Training: $600 to $3,000
- For all markets, the franchisor does not charge you for its training program for new franchisees, which consists of Pre-Opening Training. All markets may obtain the On-Site Training for an additional fee.
- You are responsible for the travel, food, and lodging expenses you incur when you attend the training program and the salary and benefit costs of your attendees.
12. Miscellaneous Opening Expenses: $1,000 to $4,000
13. Grand Opening Advertising: $3,000 to $6,000
- The amount you spend is within your discretion, but if your market is less than 20,000 Qualified Households, you will typically spend approximately $1,000 per month for the first three months, above your local advertising expenditures. If your market has 40,000 Qualified Households, you will typically spend approximately $2,000 per month for the first three months, above your local advertising expenditures.
- After 3 months, you will most likely reduce advertising to simply comply with local advertising expenditure requirements.
14. Additional Funds for Initial Three Months: $5,000 to $20,000 for first three months
- These expenses include costs related to performing background checks, hiring employees, initial employee wages, and purchasing other goods and services. These expenses do not include any draw or salary for the owners of the franchise, but they do include additional office support services you may need.
15. Total Initial Investment: $36,394 to $107,037
- In compiling this chart, the franchisor relied on its experience in the operation of residential green cleaning services.