Updated January 18, 2019.
If you are considering a Merry Maids franchise, don’t get blindsided by these 21 important franchise fees (from the initial franchise fee, to the royalty fee, to 19 other fees found in Items 5 and 6 of Merry Maids’ 2018 FDD).
1. Initial Franchise Fee: $37,500 to $51,500
- The initial fees for the franchises offered in the disclosure document 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: 15% off the initial franchise fee
Mid-Sized Market
- Initial Franchise Fee: $41,500
- Military Discount: 20% off the initial franchise fee
- Minority Discount: 15% off the initial franchise fee
Small-Sized Market
- Initial Franchise Fee: $37,500
- Military Discount: 20% off the initial franchise fee
- Minority Discount: 15% off the initial franchise fee
2. Service Fee: 7% of Gross Sales; 5% above $500,000
- Due Date: Paid weekly.
- Paid via electronic funds transfer to franchisor.
3. Software Lease: MM360: $35 to $45 per seat per month
- Due Date: Paid quarterly, one quarter in advance.
- Paid via electronic funds transfer to franchisor.
4. Software: Quick Books – Accounting: $175 for 3 years; Quick Books – Payroll: $300 annually
- Due Date: Invoiced.
- Paid to vendor.
5. Remote Data Back-Up (recommended): $34 per month
- Due Date: Invoiced.
- Paid to vendor.
6. Sales Mobility Software (recommended): $30 per month
- Due Date: Invoiced.
- Payable to franchisor.
- The franchisor recommends you use the sales mobility software system for purposes of automating your management of jobs, dispatch, and information in your franchise business.
- The sales mobility software system is optional. The cost is approximately $129 to $159 per month per franchise location depending on the type of service you select.
- You must sign an End User License Agreement to use the sales mobility software system.
7. Training Fee for Additional Persons: 1 person, 1 king suite: $2,800; 2 persons, 1 king suite: $4,400; 1 person, no hotel: $1,600
- Due Date: Prior to training.
- Training fee payable to franchisor. Training and accommodation fees are subject to change. All travel expenses will be 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 to franchisor by you or the buyer when you sell your franchise.
- No transfer fee is charged if transferring to spouse.
9. Renewal Fee: $1,000 per agreement with a $3,000 maximum per calendar year
- Due Date: When Franchise Agreement is renewed.
- Payable to franchisor.
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 franchisor.
- No charge to change business structure during first year of initial Franchise Agreement term.
11. Lead Fee: $10,000
- Due Date: At closing.
- Paid to franchisor.
- 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. Training Fee for Transfers: $2,800 per person (includes one hotel room)
- Due Date: At closing.
- Training fee is paid to franchisor.
- 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.
13. Audit: cost of audit
- Due Date: Invoiced.
- Payable to franchisor only if an audit shows an understatement of at least 2% of Gross Sales for any month.
14. Interest on Overdue or Underpayments: 18% annual rate (1.5% monthly) or the maximum permitted by law, whichever is less
- Due Date: When overdue or underpayment is paid.
- Payable to franchisor.
- Interest is due in addition to amount overdue or underpaid.
15. National Ad Fund (“Ad Fund”): 1.3% of total Gross Sales per week
- Due Date: Paid weekly.
- Paid to franchisor via electronic funds transfer.
16. Local Digital Marketing Fee: 0.7% of total Gross Sales per week
- Due Date: As incurred.
- Franchisee is required to use franchisor-approved vendors.
- Payable to vendor.
17. Employee Drug Screening: generally $20 to $30 per test
- Due Date: Invoiced.
- Payable to vendor.
18. Employee Background Check: generally $12 to $13 per check
- Due Date: Invoiced.
- Payable to vendor.
19. MM360 Software Mobile Application for iPad or Other Supported Mobile Device: $12 per month
- Due Date: As incurred.
- The first six months license is included in your initial franchise fee.
20. Telephone Answering Service 24/7 (recommended): $50 to $300
- Due Date: As incurred.
- Payable to vendor.
21. Processing Fee: $20 per job
- Due Date: As incurred.
- Payable to franchisor.
- These fees are applicable only to the National Accounts Program.
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