Detailed Information on MaidPro’s Initial Franchise Fee, Royalty Fee + 24 Other Fees (Items 5 and 6, 2022 FDD)
1. Initial Franchise Fee: $20,000, plus an additional charge of $1 for each household in the Territory in excess of 20,000
- You will pay MaidPro an initial franchise fee of $20,000 plus an additional charge of $1 for each household in the Territory (the “Qualified Households”) in excess of 20,000 (the “Initial Franchise Fee”). The Initial Franchise Fee is due at the time you sign the Franchise Agreement.
- MaidPro may offer to a first-time franchisee, who is not a franchisee (or the owner of a franchisee) of a brand owned by any of MaidPro’s franchisor affiliates, the option to have the $20,000 portion of the Initial Franchise Fee waived in exchange for an increase to the Continuing Royalty rate by an additional 1.5% of Gross Consumer Sales for 10 years (the initial 5-year term and the first 5-year renewal term, if renewed).
- In very limited circumstances, MaidPro may reduce the Initial Franchise Fee paid by a franchisee based upon various factors, including whether they are a veteran, an existing franchisee of one of MaidPro’s affiliated brands, MaidPro’s need for a franchisee in the market area in which they will be operating, their experience in the field, the number of franchises they are purchasing, or on other criteria MaidPro may adopt.
- If you are a conversion franchise, you will sign the Franchise Agreement and the Conversion Franchise Addendum and MaidPro will waive the Initial Franchise Fee.
2. Training Fee: $500 for each additional individual (after the first two) who attends the Initial Training Program
- You must successfully complete MaidPro’s Initial Training before you may open your Franchised Business. MaidPro does not charge for the Initial Training Program for up to two attendees. MaidPro charges a training fee of $500 for each additional individual who attends the Initial Training Program. This amount is nonrefundable and due prior to attendance at the Initial Training Program.
3. Royalty Fee: the following percentages are based on your gross monthly sales: $0 to $50,000: 7%; $50,000.01 to $100,000: 6%; $100,000.01 to $200,000: 5%; over $200,000: 4%; or the Minimum Royalty, whichever is greater
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- Due Date: Due by automatic debit/electronic funds transfer (“EFT”) at the end of the following month beginning immediately after completion of the Initial Training Program.
- You will pay a Minimum Royalty based on months in business.
4. Additional Premium Royalty: an additional 2.5% royalty must be paid on services provided to customers geographically located outside your assigned territory
- Due Date: Due by automatic debit/EFT at the end of the following month.
5. Technology Fee: $500 per month
- Due Date: Due by automatic debit/EFT at end of the following month.
6. Brand Fund Fee: greater of 2% of your Consumer Gross Sales or 30% of the Minimum Royalties
- Due Date: Due by automatic debit/EFT at the end of the following month.
7. Subsequent Initial Training Fee for Additional Employees: $500 per person
- Due Date: Before training.
8. Ongoing Training: registration fees, costs, and expenses, including MaidPro’s expenses if it delivers training on-site at your location
- Due Date: Before training and as incurred.
9. Ongoing Inventory: approximately 2% of Gross Consumer Sales
- Due Date: As needed.
- You may buy supplies through MaidPro’s suppliers as needed.
10. Late Submission Fee: late submission fee of $100 per violation, for any payment (including a late fee), request for information, forms, data, or item/information not received when due, plus 12% interest/year, or the maximum rate allowed by law, from date the payment amounts were originally due until paid
- Due Date: Due by automatic debit/EFT at the end of the following month.
11. Transfer Fee: $5,000
- Due Date: Before transfer.
- Payable by you or the buyer.
12. Customer Solutions Center: price varies per number of inquiries processed
- Due Date: Due by automatic debit/EFT at the end of the following month.
13. Product/Supplier Approval Costs: cost of inspection or testing, plus actual cost of laboratory fees, professional fees, and travel and living expenses of MaidPro’s personnel
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- Due Date: When billed.
- MaidPro may require you to pay it, or an independent laboratory, for the cost of inspection or testing, if you desire to purchase or lease items to be used in the Franchised Business from sources MaidPro has not previously approved.
14. Audit: cost of audit, plus underpayment amount and 12% interest/year, or maximum legal rate allowed by law, whichever is lower
- Due Date: Due by automatic debit/EFT within 15 days of audit.
- Payable only if audit shows an understatement of at least 2% of Gross Consumer Sales for any month.
15. Costs and Attorneys’ Fees: will vary under the circumstances
- Due Date: As incurred.
- Payable if you fail to comply with the Franchise Agreement.
16. Indemnification: will vary under the circumstances
- Due Date: As incurred.
- You must indemnify and hold MaidPro harmless for all claims, losses, costs, expenses, and damages arising from the operation of your Franchised Business and from the exercise of MaidPro’s step-in rights.
17. Convention Fee: $100 per month
- Due Date: Due by automatic debit/EFT at the end of the following month.
18. Customer Complaints: 100% of customer payment
- Due Date: Upon receipt of invoice.
- Applies if MaidPro intervenes on your behalf.
19. Return Failure: amount of Minimum Royalties
- Due Date: Due on demand each month until you return all of MaidPro’s property.
- Only due if you fail to return to MaidPro all of its property, such as its manuals, at termination, or you fail to certify their return to MaidPro.
20. Step-In Fee: cost of MaidPro’s representatives to operate your Franchised Business
- Due Date: Due on demand.
- Only due if you are in default under the Franchise Agreement and you don’t cure or can’t cure, you take actions that jeopardize the integrity of MaidPro’s System, you are absent, incapacitated or die, and MaidPro steps in to operate your business.
21. Renewal Fee: 5% of then-current Initial Franchise Fee
- Due Date: Before renewal.
- Only if you decide to renew your franchise.
22. Non-Compete Fee: amount equal to MaidPro’s then-current Initial Franchise Fee for each Competitive Business identified, plus 7% of the Competitive Business’s gross sales until expiration of the non-competition period
- Due Date: Monthly.
- Only if you breach the noncompetition provisions in your Franchise Agreement.
23. MaidPro University: current fee is $50/month during the second year of operation and $100/month for the remainder of your franchise
- Due Date: Due monthly by automatic debit/EFT.
- MaidPro provides training resources for use by franchisees who elect to purchase the service.
24. Text Messaging Services: current fee is $5/month per participant phone number; per text charge of $.05 per multi-media text and $.025 per standard text
- Due Date: Due monthly by automatic debit/EFT.
- MaidPro provides customer messaging services for use by franchisees who elect to purchase the service.
25. MaidPro Go: current fee is $5/month per account
- Due Date: Due monthly by automatic debit/EFT.
- MaidPro provides an app to assist in scheduling and customer service for use by franchisees who elect to purchase the service.
26. TeleDoc: current fee is $4.06/month per participant
- Due Date: As billed.
- MaidPro provides franchisees the option to participate in a telemedicine program that is billed through MaidPro by a third-party vendor.
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