In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Maid Brigade franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Maid Brigade franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Maid Brigade franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Maid Brigade outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Maid Brigade’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 median, high, and low sales for the top 1/3 performing Maid Brigade franchisees, middle 1/3 performing Maid Brigade franchisees, and lowest 1/3 performing Maid Brigade franchisees, separately stated, that were in operation for two calendar years or more as of December 31, 2017 (many of these franchisees have more than one territory, and the figures presented represent total revenues owned by each franchisee)
Section I – Background Information
14 Things You Need to Know About the Maid Brigade Franchise
Virginia Franchise Wants to Launch Maid Brigade Angels
1. In July 2018, Maid Brigade in Loudoun and western Fairfax counties, Virginia, announced that it wanted to make a larger impact on its community after 10 years of cleaning the homes of individuals suffering with major illness at no cost. Maid Brigade Loudon wants to launch Maid Brigade Angels, which will include all of the philanthropic efforts that Maid Brigade participates in each year – from sponsoring events and athletic teams to helping families that need a clean home during a challenging period.
2. With the help of Inova Loudoun Hospital and StoneSprings Hospital, Maid Brigade Angels will learn about families suffering through a difficult time and step in to help. In the press release, people were also invited to nominate a family for support by contacting Misti Lorusso from Maid Brigade Loudon.
3. According to franchise owner David Newland, “This will allow us to impact more families struggling with health challenges, by helping them in the best way we know how, and like we’ve done over the last decade.”
Looking for Ideal Candidates
4. Maid Brigade continues to look for new franchisees and the brand says that ideal candidates from diverse backgrounds are welcome to apply for a franchise. According to Maid Brigade, a successful franchise owner is one who has good interpersonal skills and enjoys interacting with others – both employees and customers. Additionally, Maid Brigade franchise candidates should find joy in helping customers solve problems and helping employees to do their best work.
5. Maid Brigade also encourages its franchisees to make a plan for division of labor from day one. If a franchise owner is a people person, they should be on the front lines with customers and prospective customers. Maid Brigade suggests that these franchisees hire an office person to focus on the operations. On the other hand, if an owner is skilled with back-office operations, they should hire a manager skillful in interpersonal relations, to be the face of their brand.
6. Lastly, successful franchise start-ups should enjoy making an immediate difference in the lives of others, such as customers who want to spend their time and energy raising families and pursuing careers, hobbies, health and wellness, and their own efforts to make a difference in the lives of others.
7. Maid Brigade also added that it will work with franchise candidates to find a lucrative territory. Maid Brigade will analyze the demographics in a given area and assemble a portfolio of contiguous zip codes to comprise between 20,000 and 40,000 total qualified households based on annual income of $75,000 or more.
Offering Green Cleaning Services
8. Maid Brigade recognizes that green cleaning services have increased in popularity recently as consumers become more aware of the potential health risks associated with traditional cleaning products and methods. The brand highlights the fact that it has been offering green cleaning services for many years.
9. According to Maid Brigade, green cleaning services are important for families who want to create the safest indoor environment possible for themselves, their pets, and their guests. Maid Brigade added that chemical ingredients in common household products can contain toxins that can make people sick.
10. To back up its claims, Maid Brigade says that there is sufficient scientific evidence that links chemicals in traditional house cleaning products to various health problems from the chronic to acute, and barely detectable to debilitating. Children, the elderly, and pets are especially susceptible to the risks posed by chemicals in house cleaning products. People are taking note and beginning to demand green house cleaning products that are safer yet still effective.
11. Maid Brigade says that it takes its commitment to protect its customers and employees seriously. The company added that it does all of the following to ensure that it is a truly green cleaning service:
- Use solutions that are certified by Green Seal (or another recognized organization) to be free from carcinogens, reproductive toxins, neurotoxins, fragrances, and other ingredients which can cause health problems;
- Use “greener” equipment such as vacuums that are recognized by the American Lung Association to improve indoor air quality;
- Use color-coded microfiber cloths to reduce the need for cleaning solutions, minimize landfill waste, and prevent cross contamination from room to room within the home;
- Have a means to ensure that each member of the green cleaning service’s staff is following the prescribed cleaning protocol in every home and on every visit;
- Stay abreast of the latest science and technology so that the service can always offer the safest and most effective cleaning protocols available.
12. Maid Brigade was founded in 1979 by Bart Puett and Don Hay in Atlanta, Georgia. Puett and Hay wanted to offer high-quality cleaning services at an affordable price. Following the success of the first Maid Brigade, Puett and Hay started franchising the concept in the early 1980s. Over the next few decades, Maid Brigade expanded across the United States and also internationally.
13. Hay stayed with Maid Brigade in various leadership positions until 2005. When Hay stepped down, Puett took over as CEO and president, a position he still holds today. Prior to this, Puett served as COO and vice president of the company.
Entrepreneur’s Franchise 500
14. Maid Brigade ranked No. 347 on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Maid Brigade franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Maid Brigade’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 386
- Outlets at the End of the Year: 385
- Net Change: -1
- Outlets at the Start of the Year: 385
- Outlets at the End of the Year: 373
- Net Change: -12
- Outlets at the Start of the Year: 373
- Outlets at the End of the Year: 365
- Net Change: -8
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 6
- Net Change: +6
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
Summary Sales Report for Year Ending December 31, 2017
- The table below includes median sales information for all franchised businesses that were in operation for two calendar years or more as of December 31, 2017.
- Many of these franchisees have more than one territory, and the figures set out below represent total revenues owned by each franchisee.
- Maid Brigade makes no representation regarding the net earnings of any franchise or that the information shown is indicative of the success of any franchise.
- This chart specifically does not include a franchise’s operating expenses, general and administrative expenses, or other factors that may affect profitability.
- Sales, expenses, and income will vary from franchised business to franchised business and market to market, and Maid Brigade does not represent that Gross Revenues for the franchisees shown herein for the periods indicated will accurately predict the future results for those franchisees or for any potential franchisee.
- These charts include only franchisees that were part of Maid Brigade’s franchise system as of December 31, 2017. Franchisees who were terminated (mutually or unilaterally) or abandoned the system prior to December 31, 2017 are not included.
- If a franchise had multiple owners due to a transfer or sale and the franchise continued uninterrupted, the franchise is represented only once in the charts and its cumulative Gross Revenues are shown.
- Gross Revenue is shown on an annual basis.
- The chart contains no information regarding company-owned businesses.
- Maid Brigade obtained Gross Revenue information from its internal records based on franchisees reporting their Gross Revenues when they made royalty payments to it. Gross Revenue information used to compile this chart has not been audited.
- Other factors besides the number of operating territories of a franchisee may affect a franchisee’s annual Gross Revenues and thus explain why some franchisees have a higher annual Gross Revenue than others. Those factors include:
- (i) the skill and experience of the franchisee;
- (ii) the effort the franchisee devotes to his or her franchised business;
- (iii) the franchisee’s business acumen;
- (iv) whether the operating territory is in a rural versus an urban setting;
- (v) prices charged by the franchisee for products and services;
- (vi) the number of maid teams used by the franchisee;
- (vii) the amount of advertising and promotional expenditures undertaken by the franchisee;
- (viii) general economic conditions; and
- (ix) the growth or shrinkage of the population in the operating territory.
Top 1/3 Performing Franchisees (26 franchisees)