Mosquito Joe Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

 1.  Initial Franchise Fee:  $42,500

• The initial franchise fee for a single unit franchise is $42,500, with up to 35,000 Targeted Households. If your Territory has more than 35,000 Targeted Households, then you must also pay an additional $1.00 per Targeted Household over 35,000.

• You may qualify for a discount on the initial franchise fee.

• You must pay the initial franchise fee in full when you sign the Franchise Agreement.

• Mosquito Joe may agree to finance a portion of the initial franchise fee, depending on your credit-worthiness, the collateral that you have available, and Mosquito Joe’s then-current financing policies.

2.  Postcard Fees:  $28,500 to $39,900

3.  Setup Fee:  $1,000

4.  Mailing List Fees:  $1,250 to $1,750

• Mosquito Joe or its affiliate are the only approved supplier of the Mailer Program in which you must participate. You must purchase all Mailer Program services from Mosquito Joe or its affiliate.

• You must pay the Setup Fee, which is currently $1,000.

• Through the Mailer Program, you are required to send postcards to all of the Targeted Households located in your Territory for your Business each calendar year. The Mailer Program requires a minimum of 3 unique postcards to be delivered to each Targeted Household each year.

• Currently, the Postcard Fee is $0.38 per postcard. The range for the Postcard Fee is based on 3 mailers of 25,000 and 35,000 Targeted Households.

• You must pay the Mailing List Fee, which is currently $0.05 per Targeted Household on the mailing list. The range for the Mailing List Fee is based on 25,000 and 35,000 Targeted Households.

• The mailing list is purchased on an annual basis by Mosquito Joe’s affiliate. Specific addresses and names are not shared with franchisees.

5.  Digital Advertising Program Fees:  $3,000

• Mosquito Joe or its affiliate are the only approved supplier of the required Digital Advertising Program in which you must participate.

• For the first season that the Business is open, 100% of the Digital Advertising Program Fees for SEO must be paid at the time your website goes live. The payment schedule for the Digital Advertising Program Fee for SEO in subsequent years will require you to pay $250 per month, payable one month prior to the month of service.

• SEO is a per website requirement. For a multi-territory franchisee operating from a single website, the Digital Advertising Program Fee for SEO will be $3,000 regardless of the number of territories open. You may only have one website.

• In addition to SEO, Mosquito Joe also provides fee-based services for pay-per-click advertising, Facebook advertising administration, remarketing, and other digital advertising services.

• The fee-based services are optional, except for franchisees who meet the $400,000 threshold for Gross Sales and elect to reduce the Mailer Program, in which case those franchisees are required to purchase from Mosquito Joe or its affiliate or approved supplier $5,000 in fee-based services, which can include $3,000 in SEO per website.

6.  Real Property:  $0 to $6,000

• Mosquito Joe encourages you to operate your franchise from your home, if local zoning laws permit. If you think your home is not properly zoned or suitable for franchise operations, you may need to lease or purchase suitable facilities.

• Mosquito Joe estimates you would need an office/warehouse of 200 to 1,000 square feet for the Business. The rent will likely vary from $12 to $18 per square foot depending on the size, condition, and location of the facilities.

• If you purchase property for an office, the costs could be significantly higher.

• The Real Property figures represent a security deposit and 3 months’ rent of 1,000 square feet at $18 per square foot, for a lease in Virginia Beach, Virginia.

• You may also need to purchase or lease certain office equipment, signage, furniture, and fixtures that Mosquito Joe may specify.

7.  Office Furnishings, Signage, and Fixtures:  $0 to $1,500

8.  Tools, Equipment, Products, Uniforms, and Supplies:  $5,500 to $6,000

• You will need to purchase certain tools, equipment, products, supplies, and uniforms that Mosquito Joe specifies. Cost will vary from state to state.

9.  Vehicles, Shelving, and Decals:  $3,000 to $10,000

• The only service vehicle Mosquito Joe has approved is a recent model (3 years or less) Ford Transit Connect, Dodge Ram Promaster City, or Mercedes Metris, as specified in the Manuals; however, other similar vehicles may be approved by Mosquito Joe.

• You will be required to utilize a vehicle and apply decals Mosquito Joe has approved. Vehicles must meet Mosquito Joe’s specifications including body style, color, and model years and Mosquito Joe estimates that you will need 1 to 2 vehicles.

• Mosquito Joe does not currently sell or lease vehicles. Mosquito Joe estimates the cost of leasing a vehicle is $3,000.

• Mosquito Joe’s approved decals and interior upfit must also be installed on each vehicle, at an estimated cost of $6,800 each.

• The low estimate ($3,000) listed above is Mosquito Joe’s estimate of leasing a vehicle with all costs bundled into the lease and the high estimate ($10,000) includes the cost of leasing or purchasing a vehicle and purchasing decals and interior upfit separately.

10.  Initial Training:  $100 to $2,000

• You will incur expenses associated with Mosquito Joe’s initial training program. For this training program, Mosquito Joe provides instructors and instructional materials. You must pay for transportation, lodging, food, and wages for you and your employees.

• The estimate is based on travel to Mosquito Joe’s headquarters in Virginia Beach, Virginia for training lasting for 5 days.

11.  Insurances, Office and Marketing Supplies, and Forms:  $5,000 to $6,000

• Mosquito Joe estimates that the range given will be sufficient to cover prepayment of insurances, initial office supplies, certain forms and supplies unique to the Business for the initial phase of the operation of the Business.

12.  Professional Fees:  $0 to $1,000

• These are estimates for fees that will be charged by your attorney to review the Franchise Agreement and other documents, to advise you, and to incorporate a business entity on your behalf if desired.

• This estimate also includes fees charged by an accountant and/or financial advisor.

13.  Licenses:  $100 to $3,200

• You may be required by state and/or local laws and regulations to obtain and maintain a license. The low estimate is licensing fees for many states.

• In some instances, this may include retaining a certified pest control professional to serve as the applicator of record for the business until the owner can obtain the necessary licensing. Because of that, the high estimate is the estimated cost of a franchisee retaining a certified pest control professional for three months, along with a pesticide business license.

14.  Additional Funds for 3 Months:  $16,000 to $26,000

• You will need to support ongoing expenses, such as payroll, fuel, supplies, and other operating costs to the extent these costs are not covered by Gross Sales of the Business. Mosquito Joe estimates that the amount stated will be sufficient to cover ongoing expenses for the initial phase of the business, which it calculates to be 3 months.

• Mosquito Joe relied on past experience of other franchisees and Local Operations and their performance when preparing these figures.

15.  Computer, Internet, Devices, Phones, Software Setup:  $2,500 to $5,000

• Prior to opening your Business, you must acquire computer equipment, internet service, telephone equipment, and implement and be trained on software systems and/or services (i.e. service management, accounting, telephone system, credit card processing, and any other software necessary to operate the Business) required by Mosquito Joe, at your sole expense.

• This amount includes a $975 fee covering the first 3 months of the fees for certain software included in Mosquito Joe’s Software System (currently ServSuite, Clicktecs, two Gmail email accounts, FranConnect, Nextiva, and Qvinci).

16.  Deposits:  $0 to $4,000

• Mosquito Joe encourages you to operate your Business from your home. If you elect to lease space for your Business, you may be required to pay lease and utility deposits for such space.

17.  Total:  $109,700 to $148,700