In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Mosquito Squad franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Mosquito Squad franchise, based on Item 7 of the company’s 2019 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Mosquito Squad franchise, based on Items 5 and 6 of the company’s 2019 FDD
- Section IV – Number of franchised and company-owned Mosquito Squad outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Mosquito Squad’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average, median, high, and low gross revenue for the 133 Mosquito Squad franchisees that operated in 232 Mosquito Squad Territories (“Reporting Franchisees”) that were operational for all of the 2018 Operating Season, by number of Operating Seasons
- average annual gross revenue for Mosquito Squad Reporting Franchisees in their first, second, third, fourth, and fifth Operating Seasons (as applicable), starting with the 2015 Operating Season
- 2012-2018 aggregate gross revenues (“System Sales”) reported to Mosquito Squad from all Mosquito Squad franchisees whose Mosquito Squad businesses were operational for any part, even as little as one month if the franchisee completed initial training in December of their initial year of operations, of each fiscal year ended December 31, 2012 through December 31, 2017 and for the fiscal year ended December 31, 2018
Section I – Background Information
15 Things You Need to Know About the Mosquito Squad Franchise
Acquired by Authority Brands
1. In early December 2018, Authority Brands, LLC announced the purchase of Mosquito Squad. Terms of the transaction were not disclosed. The acquisition represented the second brand addition for Authority Brands since October 2018. Authority Brands is a leading home services franchising platform and the parent company to The Cleaning Authority, Homewatch CareGivers, and America’s Swimming Pool Company.
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3. Amy Lawhorne, vice president and brand leader of Mosquito Squad, said, “We are very excited about this new partnership as we endeavor to build on our market leadership position, improve our processes and systems, and help our franchisees achieve even greater success. The entire Mosquito Squad team looks forward to aligning with Authority Brands and tapping into their expertise to help us grow and realize the brand’s full potential. We are thrilled to start this new chapter in the future of Mosquito Squad.”
Launches Annual Campaign to Raise Awareness About the Importance of Mosquito Protection
4. At the beginning of May 2019, Mosquito Squad kicked off its annual Protect Your Squad campaign to raise awareness about the importance of mosquito protection and help consumers stay informed on best practices to keep their families and pets safe.
5. This year, the brand is once again running its #ProtectMySquad contest where participants will have a chance to win a seasonal mosquito control package and a Big Green Egg grill. To enter the #ProtectMySquad contest, participants must post a photo or video of a squad they want to protect to Facebook, Twitter, Instagram, or the contest landing page using the hashtag #ProtectMySquad, tagging Mosquito Squad on the respective platform and sharing their zip code.
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.6. According to Amy Lawhorne, chief operating officer of Mosquito Squad, “Recent reports indicate that tick and mosquito-borne diseases have tripled since 2004 and with a higher risk of contracting Lyme, West Nile, Zika and other pest-borne illnesses, it’s so important to take mosquito control seriously. For the third year in a row, we’re using our Protect Your Squad campaign as a platform to engage with consumers and ensure they’re equipped to protect themselves and others throughout mosquito season. As a trusted source, it’s up to us to share our expert practices and insights so consumers remain educated and aware.”
7. The contest ran from May 1 through June 28. Mosquito Squad selected one winner at random mid-way through the contest and announced them on social media on Memorial Day, May 27. Once entries closed, a second winner was selected and announced on July 4.
8. The first winner received a full season mosquito protection package of the original Mosquito Squad Protective Barrier Treatment and the second received a Big Green Egg, the coveted kamado-style ceramic charcoal barbecue cooker perfect for summer entertaining.
9. In the same press release, Mosquito Squad also highlighted its partnership with Malaria No More, a nonprofit global health organization with the goal of ending malaria deaths in Africa. Since Mosquito Squad’s partnership with Malaria No More began, the company has raised more than $400,000 to help fuel the fight against malaria.
Brand Icon Dread Skeeter Helps Spread Mosquito Protection Awareness
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.10. Since Mosquito Squad was founded in 2005, the brand has used Dread Skeeter, a cartoon man equipped with mosquito control gear, as the brand’s icon and identifier. According to Mosquito Squad, Dread Skeeter is the ultimate mosquito and tick eliminator, whose mission is to allow families to take back their yards and protect them from bugs and biting insects that are not only annoying but can transmit dangerous diseases like West Nile Virus, Zika Virus, Lyme Disease, Dengue Fever, and more.
11. As the brand’s icon and identifier, Dread Skeeter is synonymous with the Mosquito Squad brand. He makes the mosquito control franchise fun and approachable. From direct mail and websites to truck wraps, emails, and yard signs, Dread is a key component of the brand’s marketing materials. Mosquito Squad even has mascot-quality costumes so that Dread Skeeter can make appearances at summer festivals, home shows, and local parades.
Company History
12. Mosquito Squad was founded in 2005 by Boyd Huneycutt and Scott Zide in Virginia. Before starting Mosquito Squad, Huneycutt and Zide were working in the outdoor lighting business and noticed that their installers were constantly being bitten by mosquitoes. To help combat the problem, Huneycutt and Zide developed the Protective Barrier Treatment, which is now Mosquito Squad’s proprietary mosquito control method.
13. Recognizing the need for quality mosquito control, Huneycutt and Zide left the outdoor lighting business to set up Mosquito Squad. Due to the demand for its services, Mosquito Squad grew fairly quickly and franchising started right away. By 2009, there were 15 Mosquito Squad units.
14. In late 2018, Mosquito Squad was acquired by Authority Brands, the parent company of The Cleaning Authority, Homewatch CareGivers, Mister Sparky, Benjamin Franklin Plumbing, America’s Swimming Pool Company, and One Hour Heating & Air Conditioning.
Entrepreneur’s Franchise 500
15. Mosquito Squad ranked No. 316 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Mosquito Squad franchise costs, based on Item 7 of the company’s 2019 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Mosquito Squad’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2016
- Outlets at the Start of the Year: 186
- Outlets at the End of the Year: 203
- Net Change: +17
2017
- Outlets at the Start of the Year: 203
- Outlets at the End of the Year: 227
- Net Change: +24
2018
- Outlets at the Start of the Year: 227
- Outlets at the End of the Year: 229
- Net Change: +2
Company-Owned
2016
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2017
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2018
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
Part 1 – Average and Median Gross Revenues for Mosquito Squad Franchisees for the 2018 Operating Season
- As of December 31, 2018, there were 130 Mosquito Squad franchisees that operated in 229 Territories. The table below presents the average and median annual Gross Revenues realized by certain Mosquito Squad franchisees during their 2018 Operating Season (as defined below).
- The information provided in the table below was compiled from 133 Mosquito Squad franchisees that operated in 232 Mosquito Squad Territories (“Reporting Franchisees”) that were operational for all of the 2018 Operating Season (but not necessarily as of December 31, 2018).
- The data excludes 3 Mosquito Squad franchisees that operated in 3 Territories that either signed franchise agreements and began operations during the 2018 Operating Season, did not collect any Gross Revenues during the 2018 Operating Season, or ceased operations during the 2018 Operating Season.
- Of the 3 excluded franchisees, 3 franchisees (operating a total of 3 Territories) closed during 2018. Of those, 1 franchisee (operating 1 Territory) closed their Mosquito Squad franchise after being open for less than 12 months.
- Of the 133 Reporting Franchisees, 57 Reporting Franchisees operated in more than one Territory. One Reporting Franchisee operated in 9 Territories, 2 Reporting Franchisees operated in 7 Territories, 1 Reporting Franchisee operated in 5 Territories, 1 Reporting Franchisee operated in 4 Territories, 13 Reporting Franchisees operated in 3 Territories, 38 Reporting Franchisees operated in 2 Territories, and the remaining 76 Reporting Franchisees operated in 1 Territory.
- The table below shows Gross Revenue received by the Reporting Franchisees for all the Territories they owned for the 2018 Operating Season, as reported by the Reporting Franchisees.
- “Gross Revenue” means the total of all receipts derived from all sales of products and services at a Reporting Franchisee’s Outdoor Pest Control Business, labor, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for a Reporting Franchisee or a Reporting Franchisee’s Outdoor Pest Control Business or by means of the business conducted under the Franchise Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property, or other means of exchange.
- Gross Revenue does not include any taxes paid by a Reporting Franchisee or any customer refunds, valid discounts and coupons, and credits made by a Reporting Franchisee’s Outdoor Pest Control Business (but Gross Revenue is not reduced for any credit card user fees, returned checks, or reserves for bad credit or doubtful accounts).
- “Operating Season” means the season in which the Mosquito Squad franchisee actively serviced customers in its Territory. Each Mosquito Squad franchisee’s Operating Season will vary depending on the location of their Territory.
- The table below presents the minimum, average, maximum, and median Gross Revenue for the 2018 Operating Season for the Mosquito Squad Reporting Franchisees in operation for the full 2018 Operating Season.
7+ or More Full Seasons
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