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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Maid Brigade’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 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, 2018 (many of these franchisees have more than one territory, and the figures presented represent total revenues owned by each franchisee)
Section I – Background Information
16 Things You Need to Know About the Maid Brigade Franchise
4 Steps to Owning a Maid Brigade Franchise
1. According to Maid Brigade, there are only four steps to entrepreneurship with the company.
2. Step #1: Introductions – Potential franchisees start the ownership process by applying at the Maid Brigade franchise website. After filling out the form, the interested party will be contacted by phone by a Maid Brigade franchise sales representative. During the introductory phone call, potential franchisees will speak with one of the company’s Franchise Development Specialists to learn more about the brand, its 30-year track record, and what the company is looking for in a successful franchisee.
3. Step #2: Territory Check – During the second phase of the franchise process, Maid Brigade ensures that the area a potential franchisee desires is available and is not already owned by an existing franchisee. It also helps Maid Brigade begin to understand the market potential for a potential franchisee’s chosen area. The company determines that market potential based on demographic and geographic information, which helps it to shape an optimum territory. Maid Brigade says it has the flexibility to work with each prospect to assemble the most advantageous set of zip codes possible in any market.
4. The company considers a qualified household to earn an annual total income of $100,000 or more. It then assembles its territories based on the number of qualified households in a zip code. Maid Brigade likes to make sure each zip code has an adequate starting density of qualified households. Over time, the number of households that qualify in each zip code is expected to naturally increase.
5. Step #3: Application – This is the most straightforward step. After completing the preliminary inquiries, potential franchisees can complete the official franchise application. Once completed, the application needs to be submitted by email to Joel Lazarovitz at email@example.com.
6. Step #4: Discovery Day – After Maid Brigade has had a chance to get to know a potential franchisee and they’ve gone through the franchise process, the company likes to meet prospects face to face. Maid Brigade feels this vital step ensures that its concept is a good fit with the entrepreneurial candidate. Discovery Day is also a time for Maid Brigade’s strongest franchise candidates to come to the Maid Brigade home office and meet with some of the staff who would help train and coach them in their cleaning services franchise.
7. Maid Brigade stresses that Discovery Day is not a sales day, but is an opportunity to attach a name to a face. It is also a time for candidates and Maid Brigade to discuss the details of how the company’s franchise support system works, the candidates’ strengths (and weaknesses), and how to structure their business accordingly.
8. If Discovery Day goes well, candidates will then receive a franchise agreement. Once it’s signed and returned to the home office, franchise training will begin.
Offers a Wide Array of Cleaning Services
9. Maid Brigade says that the company’s primary mission is to provide customers with a sparkling clean home without dangerous chemical residues. The company offers both regular and one-time cleaning services. The following are included in Maid Brigade’s cleaning services:
10. Standard Tasks
- Dust window sills, decorative items, wall hangings, blinds, ceiling fans, and furniture;
- Remove cobwebs;
- General tidying;
- Vacuum all floors.
11. Extra Touches
- Empty wastebaskets and place trash in outside receptacle;
- Vacuum family room furniture;
- Wash window over kitchen sink;
- Make beds.
12. Deep Cleaning (additional fees apply)
- Wipe down woodwork, including baseboards, door frames, window sills, cabinet exteriors, and paneling;
- Clean interior windows, sliding glass doors, and french doors;
- Spot clean walls;
- Utilize HEPA vacuum on upholstered furniture, pillows, bedding, mattresses, drapes, stuffed animals, carpet edging, window blinds, and HVAC vent covers;
- Clean underneath area rugs;
- Clean underneath/behind light, movable furniture;
- Polish silver.
13. Maid Brigade was founded in 1979 by Don Hay in Atlanta, Georgia. Hay started Maid Brigade to offer affordable home cleaning services, which weren’t widely available at the time. A few years after Hay started Maid Brigade, Bart Puett, the company’s current president and CEO, joined the company. Puett worked with Hay to turn Maid Brigade into one of the largest housecleaning companies in the United States.
14. In 1985, Maid Brigade started franchising and the company continued to expand around the country as well as internationally. Hay continued to hold various leadership positions with Maid Brigade until 2005. After Hay left the company, Puett stepped in as CEO and president. Puett has also served as Maid Brigade’s COO and vice president.
15. Today, there are Maid Brigade locations around the world and the company offers a wide array of cleaning services including interior oven and/or refrigerator cleaning, silver polishing, fireplace cleaning, and moving in/out services.
Entrepreneur’s Franchise 500
16. Maid Brigade ranked No. 183 on Entrepreneur’s 2020 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 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- 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: 365
- Outlets at the End of the Year: 367
- Net Change: +2
- 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
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 0
- Net Change: -6
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
Summary Sales Report for Year Ending December 31, 2018
- 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, 2018.
- 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, 2018. Franchisees who were terminated (mutually or unilaterally) or abandoned the system prior to December 31, 2018 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 (25 franchisees)