Considering a MaidPro Franchise? Don’t Overlook These 23 Important Franchise Fees

Updated December 1, 2020.

If you are considering a MaidPro franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of MaidPro’s 2020 FDD).

1.  Initial Franchise Fee:  $0 to $80,000

• MaidPro offers a choice of market types, based on the number of qualified households of the operating territory. The minimum initial franchise fee and the minimum number of qualified households in the exclusive operating territory for all markets offered are as follows:

Select

• Initial Franchise Fee:  $20,000

• Minimum Qualified Households in Operating Territory:  20,000

Enterprise

• Initial Franchise Fee:  $40,000

• Minimum Qualified Households in Operating Territory:  40,000

Multi-Unit Enterprise

• Initial Franchise Fee:  $80,000

• Minimum Qualified Households in Operating Territory:  80,000

• The initial cost of your franchise is broken down into two segments: a franchise fee of $20,000, $40,000, or $80,000 depending on operating territory size, and the optional purchase of additional territory over and above the minimum qualified households listed above.

• The initial franchise fee of a Select Market Franchised Business includes up to 20,000 qualified households. The initial franchise fee of an Enterprise Market Franchised Business includes 40,000 qualified households. The initial franchise fee of a Multi-Unit Enterprise Market Franchised Business includes 80,000 qualified households.

• Each additional qualified household costs $1.00 and that cost will be added to the initial franchise fees set forth above.

• You must pay the initial franchise fee for either an Enterprise Market Franchise or a Multi-Unit Enterprise Market Franchise in one lump sum when you sign the Franchise Agreement.

• You may pay the initial franchise fee for a Select Market Franchise in one lump sum when you sign the Franchise Agreement or if you are creditworthy, MaidPro may offer to finance $5,000 of the initial franchise fee.

• These fees are uniform but may change in the future. All fees are fully earned and non-refundable.

• At the time you purchase the Franchise Business, you may elect to purchase an exclusive option to acquire additional territory. You must pay an option fee which is equal to 20% of the then-current purchase price for these additional zip codes. The option fee is due in one lump sum when you sign the Franchise Agreement. You must exercise your option to purchase the additional territory within 18 months following the date you sign the Franchise Agreement.

• MaidPro currently offers a cross-brand discount of 30% of the then-current franchise fee to any FlyFoe or Men In Kilts US franchisee, who is in good standing and desires to purchase a MaidPro franchise. MaidPro also currently offers a discount of 30% of the then-current franchise fee to any MaidPro franchisee, who is in good standing and desires to purchase a FlyFoe or Men In Kilts US franchise.

• If you are a conversion franchise, you must complete MaidPro’s Conversion Franchise Application. If your application is approved, you will sign the Conversion Franchise Agreement, and based on your prior year’s annual sales volume your franchise fee will be waived.

• If your sales volume for the prior six months is a minimum of $25,000 but less than $75,000, you will be granted a Select Market Franchised Business without the payment of the franchise fee, but you will still have to pay $1.00 per each qualified household purchased over 20,000 qualified households.

• If your sales volume for the prior six months exceeds $75,000, you will be granted an Enterprise Market Franchised Business without the payment of the franchise fee, but you will still have to pay $1.00 per each qualified household purchased over 40,000 qualified households.

• MaidPro currently offers a “Local Hero” discount to police officers, firefighters, doctors, nurses, and paramedics/emergency medical technicians (EMT). MaidPro also participates in the International Franchise Association’s VetFran program.

• If you are a qualified veteran of the United States armed forces or Local Hero, the base franchise fee for a Select Market Franchised Business is $17,000. If you are a qualified veteran of the United States armed forces or Local Hero, the base franchise fee for an Enterprise Market Franchised Business is $37,000. If you are a qualified veteran of the United States armed forces or Local Hero, the base franchise fee for a Multi-Unit Enterprise Market Franchised Business is $77,000.

2.  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%

• Due Date:  Due by automatic debit/electronic funds transfer (“EFT”) at the end of the following month.

• After the first 36 months, you will pay a minimum royalty based on months in business.

3.  Additional Royalty:  an additional 2.5% royalty must be paid on services provided to customers geographically located outside your purchased territory

• Due Date:  Due by automatic debit/EFT at the end of the following month.

4.  Software License:  the following costs are based on tiers of active recurring customer counts: 0 to 49 customers: free (2 users included); 50 to 99 customers: $100 (3 users included); 100 to 199 customers: $150 (4 users included); 200 to 299 customers: $200 (5 users included); 300 to 399 customers: $250 (5 users included); 400+ customers: $300 (5 users included)

• Due Date:  Due by automatic debit/EFT at the end of the following month.

5.  Advertising Fund:  1.5 to 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.

6.  Subsequent Initial Training for Additional Employees:  $500 per person, plus their costs and expenses for transportation, hotel, food, etc. to 3rd parties

• Due Date:  Prior to training.

7.  Ongoing Training:  registration fees, costs, and expenses

• Due Date:  Prior to training.

8.  Super Support Program:  $500/visit for two days of on-site training, plus expenses if more than 120 miles from corporate office

• Due Date:  Upon receipt of invoice.

• MaidPro provides on-site training at your request.

10.  Ongoing Inventory:  approximately 2% of Gross Sales

• Due Date:  As needed.

• You may buy supplies through MaidPro’s suppliers as needed.

11.  Late Fee:  late submission fee of $100 per payment, form, or information not submitted when due, plus 12% interest/year from date the payment amounts were originally due until paid

• Due Date:  Due by automatic debit (“EFT”) at the end of the following month.

12.  MaidPro’s Automated Communications System (M.A.C.S.):  $125 per month

• Due Date:  Due by automatic debit (“EFT”) at the end of the following month.

13.  Transfer Fee:  $5,000

• Due Date:  Prior to transfer.

• Payable by you or the buyer.

14.  Resale Assistance Fee:  $5,000 or 5% of sales price, whichever is greater

• Due Date:  Prior to transfer.

• Payable by you if MaidPro finds a buyer for your franchise.

15.  Renewal:  $500

• Due Date:  Before renewal is effective.

• Initial Franchise Agreement is for 5 years.

16.  National Sales Center:  price varies per number of inquiries processed

• Due Date:  Due by automatic debit (“EFT”) at the end of the following month.

17.  Audit:  cost of audit, plus underpayment amount and 12% interest/year

• 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 Sales for any month.

18.  Insurance:  $2,000 to $12,000 (1st year)

• Due Date:  As incurred.

19.  Costs and Attorneys’ Fees:  will vary under the circumstances

• Due Date:  As incurred.

• Payable upon your failure to comply with the Franchise Agreement.

20.  Indemnification:  will vary under the circumstances

• Due Date:  As incurred.

• You must indemnify and hold MaidPro and its managers, officers, employees, and affiliates harmless with respect to any and all claims, losses, costs, expenses, liabilities, attorneys’ fees, and damages arising directly or indirectly from, as a result of, or in connection with your franchise’s operation and defending against them.

21.  National Convention Fee:  $100 per month

• Due Date:  Due by automatic debit (“EFT”) at the end of the following month.

22.  Customer Complaints:  100% of customer payment

• Due Date:  Upon receipt of invoice.

• Applies if MaidPro intervenes on your behalf.

23.  Toll-Free Call Routing:  $20 per month

• Due Date:  Due by automatic debit (“EFT”) at the end of the following month.