Detailed Estimates of The Maids Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Maids’ 2016 Franchise Disclosure Document
1. Initial License Fee: $12,500
- The Initial License Fee for your first The Maids Business is $12,500.
2. Initial Territory Fee: $19,000 to $66,500
- The price for each Potential Customer located in the Designated Market Area you purchase will be $0.95 per Potential Customer. Potential Customers are defined by using demographic data. Every household in your market area that has an annual income of over $75,000 is a Potential Customer.
- The low estimate assumes that there are approximately 20,000 Potential Customers. The range of size of a Designated Market Area encompasses approximately 20,000 to 70,000 households.
- Your Designated Market Area will consist of two or more Franchise Territories. Your Designated Market Area will be defined by hard boundaries, such as streets, highways, rivers, or other identifiable physical boundaries.
3. Initial Equipment and Supply Package: $11,750 to $12,750
4. Initial Software License: $950
5. Office Security Deposit: $500 to $2,500
6. Computer Hardware: $1,500 to $5,000
- See Item 11 of the Disclosure Document for more complete information regarding the computer hardware necessary to operate your The Maids Business.
7. Office Fixtures, Decorating, and Furniture: $1,000 to $5,000
8. Auto Painting/Wrap: $750 to $2,250
9. Telephone Deposit: $250 to $1,500
10. Insurance Deposit: $2,200 to $3,200
- See Item 8 of the Disclosure Document and Article 12 of the Franchise Agreement for more complete information regarding the insurance coverage necessary for your The Maids Business.
11. Signs: $100 to $3,000
12. Washer and Dryer: $800 to $2,000
13. Start-Up Professional Services: $500 to $3,500
14. Wages, Travel, and Living Expenses During Corporate Training: $2,400 to $5,250
- You are responsible for all wages, fringe benefits, payroll taxes, unemployment compensation, workers’ compensation insurance, travel costs, lodging, food, automobile rental, and other expenses incurred for all persons attending The Maids’ Corporate Training Program.
- Two people, including yourself, must attend and successfully complete The Maids’ Corporate Training Program which is described in Item 11 of the Disclosure Document.
15. Additional Funds for 3 Months: $21,900 to $38,450
- This additional funds estimate does not include the Continuing License Fees, Advertising Fees, or the Technology Fee you must pay to The Maids. This additional funds estimate does not include any franchisee compensation or payroll costs.
- These figures are estimates only, and it is possible that you may have additional or greater expenses during this initial 3-month period. Your costs will vary depending on the size of your The Maids Business, economic and market conditions, competition, wage rates, sales levels attained, and other factors.
16. Total: $76,100 to $164,350
- Your estimated initial investment and other estimates in the Disclosure Document do not take into account any debt service, ongoing working capital financing, accounts receivable financing, or other related costs.
- Also, no provision has been made for capital or other reserve funds necessary for you to reach “breakeven,” “positive cash flow,” or any other financial position, and The Maids does not furnish, nor does it authorize salespersons or anyone else to furnish, estimates or otherwise as to those amounts.
- The figures presented do not estimate ongoing operating costs, and the actual minimum initial cost necessary to commence operations may vary considerably from the estimates provided. The numbers are estimates only and there is no assurance that additional funds might not be needed by you before or after opening your The Maids Business.
- These estimates are based on The Maids’ years of experience in franchising and operating The Maids Business, and are derived primarily from information which franchisees provide to it.
- These estimates make no provisions for personal living expenses needed by you and your family.
- Since costs to begin operating a The Maids Business can vary with each franchise (particularly if you are purchasing an existing The Maids Business), The Maids strongly recommends that you (1) obtain, before purchasing a The Maids franchise or making other commitments, independent estimates from third-party vendors and your accountant of the costs which would apply to the establishment and operation of a The Maids Business, (2) discuss with current and past The Maids franchisees their economic experiences (including initial investment and appropriate reserve funds) in opening and operating a The Maids Business, and (3) evaluate carefully the adequacy of your total financial reserves with an accountant or other professional financial advisor.