Considering a Merry Maids Franchise? Don’t Overlook These 17 Important Franchise Fees

Updated November 17, 2019.

If you are considering a Merry Maids franchise, don’t get blindsided by these 17 important franchise fees (from the initial franchise fee, to the royalty fee, to 15 other fees found in Items 5 and 6 of Merry Maids’ 2019 FDD).

1.  Initial Franchise Fee:  $37,500 to $51,500

• The initial fees for the franchises offered in the disclosure document, as well as available discounts, are listed in the chart below.

Full-Sized Market

• Initial Franchise Fee:  $41,500 to $51,500
• Military Discount:  20% off the initial franchise fee
• Minority Discount:  10% off the initial franchise fee
• Women-Owned Discount:  10% off the initial franchise fee
• Online Marketing Fund Deposit:  $3,000

Mid-Sized Market

• Initial Franchise Fee:  $41,500
• Military Discount:  20% off the initial franchise fee
• Minority Discount:  10% off the initial franchise fee
• Women-Owned Discount:  10% off the initial franchise fee
• Online Marketing Fund Deposit:  $3,000

Small-Sized Market

• Initial Franchise Fee:  $37,500
• Military Discount:  20% off the initial franchise fee
• Minority Discount:  10% off the initial franchise fee
• Women-Owned Discount:  10% off the initial franchise fee
• Online Marketing Fund Deposit:  $3,000

2.  Service Fee:  7% of Gross Sales (up to $500K Gross Sales); 5% of Gross Sales (above $500K Gross Sales)

• Due Date:  Paid weekly, on Friday.

• Paid via electronic funds transfer to Merry Maids.

3.  Software Lease for MM360:  $35 to $45 per seat per month

• Due Date:  Paid quarterly, one quarter in advance.

• Paid via electronic funds transfer to Merry Maids.

4.  MM360 Software Mobile Application for iPad or Other Supported Mobile Device:  $12 per month

• Due Date:  After first 6 months, paid quarterly, one quarter in advance.

• The first six months license is included in your initial franchise fee.

5.  Service Mobility Software (recommended) for iPad or Other Supported Mobile Device:  $129 to $159 per month; Extended Package:  $30 per franchise location per month

• Due Date:  As invoiced.

• Payable quarterly, in advance.

6.  Training Fee for Additional Persons:  $2,800 per person

• Due Date:  Prior to training.

• For 10-day training session in Memphis, TN.

• Training and accommodation fees are subject to change.

• All travel and hotel expenses and some meals will be your responsibility.

7.  Training Fee for Transfers:  $2,800 per person

• Due Date:  At closing.

• For training of new franchisees who purchase an existing franchise.

• Training fees for transfers are subject to change.

• All travel expenses and additional hotel rooms are your responsibility.

8.  Transfer Fee:  $7,000 for the first license transferred and then $3,000 for each additional license transferred at the same time. Transfer to a child of current owner is $3,500 for first license and $1,250 for each subsequent license. Transfer to spouse, no transfer fee.

• Due Date:  At closing.

• Payable by you or the buyer when you sell your franchise.

• No transfer fee is charged if transferring to spouse.

9.  Renewal Fee:  currently, $1,000 per agreement with a $3,000 maximum per calendar year

• Due Date:  When Franchise Agreement is renewed.

• This fee is subject to change.

10.  Franchise Agreement Change Fees (adding/deleting/changing):  $200 for adding or deleting owner name, other than spouse; $200 (after first year of original license term) for removing owner(s) or adding an owner(s) at renewal time. However, if the owner(s) being removed or added has 50% or more ownership of the franchised business, it is a transfer, and the transfer fee is due; $200 for changing business entity name (after first year of original license term)

• Due Date:  Upon approval.

• When you add or delete or change the owners, the business entity, or change your business structure from what is on your Franchise Agreement, you must have approval from Merry Maids prior to the change. Once approved, a change fee is paid to Merry Maids.

• No charge to change business structure during first year of initial Franchise Agreement term.

11.  Lead Fee:  $10,000

• Due Date:  At closing.

• A lead fee will be charged should Merry Maids refer to an existing franchise owner a qualified lead of someone who buys the owner’s franchise business within an 18-month period from the time the lead is passed to the existing owner.

12.  Audit:  cost of audit

• Due Date:  As invoiced.

• Payable only if an audit shows an understatement of at least 2% of Gross Sales for any month.

13.  Interest on Overdue or Underpayments:  18% annual rate (1.5% monthly) or the maximum permitted by law, whichever is less

• Due Date:  When amount is overdue or underpaid.

• Interest is due in addition to amount overdue or underpaid.

14.  National Ad Fund (“Ad Fund”):  1.3% of total Gross Sales per week

• Due Date:  Paid weekly, on Friday.

• Paid via electronic funds transfer.

15.  Indemnification:  unknown

• Due Date:  On demand.

• You indemnify Merry Maids and its affiliates in connection with your operation of the Franchised Business.

16.  Complaint Management Fee:  up to $500

• Due Date:  Within 30 days of notification by Merry Maids.

• Reimbursement for Merry Maids’ costs of management and settlement of customer complaints.

17.  Processing Fee:  $20 per job

• Due Date:  As incurred.

• Payable to Merry Maids.

• These fees are applicable only to the National Accounts Program.