In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the MaidPro franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a MaidPro franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a MaidPro franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of MaidPro’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- average total monthly sales, monthly recurring sales, monthly one-time sales, job costing, cost per inquiry, number of recurring customers, and monthly sales per average number of recurring customers for Enterprise Market (number of Qualified Households is greater than 40,000), Select Market (number of Qualified Households is from 20,000 to 40,000), and Multi-Unit Enterprise Market (number of Qualified Households is greater than 80,000 and operates multiple office locations), separately stated
- average MaidPro National Sales Center signup percentage and recurring signup percentage (separately stated) for the 142 franchised businesses that used the MaidPro National Sales Center, full-time, for internet leads and overflow leads, and had at least 1 quote contacted by the MaidPro National Sales Center during the month of December 2016
Section I – Background Information
12 Things You Need to Know About the MaidPro Franchise
CEO Named Top Franchise Leader by Franchise Business Review
1. In mid-October, MaidPro announced that the company’s CEO and co-founder Mark Kushinsky was named one of Franchise Business Review’s Top Franchise Leaders for 2017. The company’s franchisees were surveyed by Franchise Business Review on 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including leadership, training and support, operations, franchisor/franchisee relations, and financial opportunity.
2. According to Eric Stites, CEO of Franchise Business Review, “The fact that Mark Kushinsky was chosen by the people whose business success is dependent on his leadership is a true testament to his talent, vision, and dedication to franchisee satisfaction.”
Partners with Qvinci
3. In early September, MaidPro said that it had partnered with Qvinci, a global leader in financial reporting technology, “to provide increased business intelligence to its franchise owners at the touch of a button.” Qvinci is also providing MaidPro with an internal franchise-wide financial reporting system to complement the company’s operational key metrics.
4. Prior to working with Qvinci, MaidPro received its financial data through emails from its franchisees in a variety of different formats on an “as requested” basis. According to MaidPro’s Business Development Manager Brian Shraiar, this resulted in the company having to take time to decipher multiple variations of profit and loss statements. He added that MaidPro has always had a standard chart of accounts, but it was never enforced and that Qvinci has automated data consolidation and mapping capabilities that have solved MaidPro’s problems.
5. MaidPro now requires all new franchisees to use Qvinci from the start and is currently working on 100 percent adoption with its existing franchisees.
🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)
🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)
💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator
Helping With Hurricane Harvey Relief
6. In early October, MaidPro announced that it had partnered with product vendors to help with Hurricane Harvey relief. The company’s community came together to create “cleaning buckets” – which consisted of cleaning products, towels, sponges, mini scrapers, and more – to give to families in Texas affected by Hurricane Harvey.
7. Franchisee Cyndi Williams of MaidPro Katy, Texas distributed over 300 of these “cleaning buckets” with help from the MaidPro home office, fellow franchisees, and product vendors. Additionally, Marcus Pough of MaidPro White Rock and Jenn Curtis of MaidPro Bryan/College Station were essential in the pick-up and delivery of supplies.
8. In a press release, MaidPro thanked its partner vendors HyKo, P&G, Microfiber Wholesale, Nationwide Sales & Service, Sponge Outlet, Dott Products, and Coastal Distributors for their help. Madeleine Park, MaidPro’s Marketing Manager, added, “We are in the business of helping others and will continue to do so whenever and wherever we can.”
9. MaidPro was founded in 1991 by Mark Kushinsky and Richard Sparacio in Boston, Massachusetts. Kushinsky was inspired to start MaidPro after a negative experience with a cleaning service that did an inadequate job of cleaning his house and locked his cat in a bathroom. He shared his story with Sparacio and the two felt that they could offer a better service.
10. By the end of the next year, MaidPro employees had cleaned over 1,000 homes, and in 1994, Kushinsky developed a proprietary service management software called MaidSoft. In 1996, the year before MaidPro began franchising, the company began selling its software under the name ServiceCEO.
11. By the end of the 1990s, MaidPro had five locations in the U.S. and about a decade later, the company opened its first international location in Canada. Today, there are over 230 MaidPro locations across the U.S. and Canada.
Entrepreneur’s Franchise 500
12. MaidPro has appeared on Entrepreneur’s annual Franchise 500 list every year in the past decade. The company’s highest rank was No. 94 in 2017, while its lowest rank was No. 249 in 2007.
Section II – Estimated Costs
- Please click here for detailed estimates of MaidPro franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on MaidPro’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- The information provided is an historic financial performance representation about a subset of the MaidPro franchise system’s existing outlets.
- Because business maturation can take up to 18 months or longer, MaidPro is reporting only on those Businesses open 18 months or more.
- If a franchisee had more than one territory, the Gross Sales include revenues from all of the franchisee’s territories.
- The number of Qualified Households for each franchisee varies, and your territory may have a different number of Qualified Households.
- The franchisees below all had territories that had in excess of 20,000 Qualified Households at the time they signed their Franchise Agreements, or increased their territory beyond 20,000 Qualified Households by purchasing additional territories after their initial signing.
- Some of the franchisees had in excess of 80,000 Qualified Households at the time they signed their Franchise Agreement, or increased their territory beyond 80,000 Qualified Households by purchasing additional territories after their initial signing.
- A Qualified Household is a home which has an average annual income of $75,000 or more. The number of Qualified Households in a territory typically increases over time.
- Based upon the performance of the franchises which were in operation for a minimum of 18 months as of December 1, 2016, MaidPro is providing the following disclosure of the actual Gross Sales for these units.
- The following tables present the Average Same Franchised Unit sales for the month ending December 31, 2016.
- MaidPro defines “Same Franchised Units” as a franchised business in operation a minimum of 18 months as of December 1, 2016 and had a minimum of 20,000 Qualified Households as of December 1, 2016.
- Out of the 202 franchised businesses, operated by 152 franchisees, that were in operation on December 1, 2016, MaidPro is reporting on 151 franchised businesses, operated by 115 franchisees, which complies with the definition for Same Franchised Units.
- Monthly Gross Sales, however, will fluctuate somewhat throughout the year. The locations of the franchised businesses are across the United States, and the franchised businesses are located in both major metropolitan areas, suburban areas, and rural areas.
- The figures below, which reflect Gross Sales, not profits, were calculated based upon information reported to MaidPro by its franchisees in their monthly reports used by MaidPro for calculating Royalties. The monthly reports are compiled using Salesforce.com Software. The above figures have not been audited by MaidPro.
- The figures do not reflect all costs of sales, operating expenses, or other costs and expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.
Part 1 – Enterprise Market (Number of Qualified Households is Greater Than 40,000)
To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.
Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.
Leave a Reply