In this FDD Talk post, you’ll learn the following:
- Section I – Background information on The Maids franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The Maids franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Maids franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned The Maids outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of The Maids’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- fiscal year 2019 average revenue per clean, average annual revenue per customer, and average percentage of cleans derived from regular maid service and special projects (one-time cleaning) for the 101 franchisees representing 1,195 territories that were in operation for the 12-month period from October 1, 2018 until September 30, 2019
- fiscal year 2019 high, low, average, and median revenue for the 101 franchisees representing 1,195 territories that were in operation for the 12-month period from October 1, 2018 until September 30, 2019
- fiscal year 2019 total revenue, service expenses, operating margin, administrative expenses, and net income for the 10 company stores representing 174 territories that were in operation for the full 12-month period from October 1, 2018 until September 30, 2019
Section I – Background Information
19 Things You Need to Know About The Maids Franchise
Celebrates 40 Years as a Leader in Franchising
1. At the end of August, The Maids announced that it was celebrating 40 years in franchising. The Maids began franchising in 1980 and quickly went national and then international. At the time of the announcement, The Maids International had more than 180 franchises serving over 90 major U.S. and Canadian cities.
2. According to founder Daniel J. Bishop, “In the past 40 years, we have changed forever the way homes are cleaned in the U.S. and Canada by bringing a system to an industry many didn’t give a second look. We brought the consumer a cleaner home, quicker, with more dependability, at an affordable cost.”
3. Before starting The Maids, Bishop researched the cleaning process. Through time and motion studies, his research determined the most efficient way to clean a home is through team cleaning. Bishop’s cleaning system is based on four primary functions: dusting, bathroom cleaning, kitchen cleaning, and vacuuming. Through this regimented home cleaning structure, The Maids’ home cleaning teams are able to clean quickly and efficiently.
4. In 1995, The Maids became the first residential cleaning business to clean for health. This was accomplished by using environmentally-preferable cleaning products and a state-of-the-art backpack vacuum. The development of the unique 22-Step Healthy Touch Deep Cleaning System set new standards for quality deep cleaning and revolutionized the industry.
5. “We created a level of quality control and a cleaning system focused on health that did not exist. We brought passion to the customer experience, and along the way created the most lucrative business model for our franchisees,” said Bishop.
6. Today, The Maids International is still family owned and led by Daniel Bishop’s son, Colin Bishop. While reminiscing on the last forty years has been fun, The Maids International and The Maids franchise network are poised for growth in the next forty years.
7. Colin Bishop added, “Yesterday, today, and tomorrow we continue to serve customers wholeheartedly in unexpected and helpful ways. It’s at the heart of The Maids brand – always was and always will be. I can only imagine how the service industry will change. We’re on the cusp of so many business-altering technologies and the way service is delivered will be unrecognizable from what it is today. With all the change that is to come, I’m certain one aspect will surely remain in demand – emotional intelligence and a focus on consumer experience.”
Exceptional Franchisees Recognized at Annual Growth Summit
8. In late May 2019, The Maids International, corporate office of The Maids franchise network, recognized its top franchisees at its Annual Growth Summit in Omaha, Nebraska. One recipient was The Maids of Ashburn (in Sterling, Virginia), owned by Mark Gilbert, as Franchise of the Year, the company’s highest honor.
9. The Franchise of the Year recognizes the combined efforts of the owners, managers, and every team member, in achieving excellence in all facets of operating a successful The Maids franchise. Factors in the selection include not only revenue growth and profit, but also quality of service, professional image, working environment, and morale of the workforce.
10. Gilbert has been operating his franchise for 15 years, building the business from the ground level. To Gilbert, the Franchise of the Year Award is an accumulation of many years of hard work and dedication to move the business forward. It wasn’t just one year that clinched the award for him; it’s the sum of the parts that Mark gives a nod to when sharing his formula for success.
11. Gilbert is grateful for being honored as Franchise of the Year. “I was honored. It surprised me. I felt there are a lot of people that deserve this award so to be chosen was an honor.” Colin Bishop, president and CEO of The Maids International, said, “Mark has a remarkable enthusiasm for the business. He puts customers first and has created an office culture that retains great staff. We are fortunate to have him as a leader in our franchise network.”
12. Lynn Mulroy, franchise owner of The Maids in East Toronto and Durham Region in Ajax, Ontario, was rewarded for the leadership and support she provides to her fellow colleagues within The Maids franchise network, by receiving the Jeff Harris Spirit Award. Lynn and her husband Sean opened The Maids of East Toronto and Durham Region in 2008 and it has grown steadily each year due to their key focus on employees, quality cleaning, and exceptional customer service.
13. The Jeff Harris Spirit Award is given to a franchise owner who demonstrates compassion and provides valuable guidance, encouragement, and support to other franchisees. It is named in honor of Jeff Harris, a former regional franchise owner, whose character and demeanor made him a model friend and business mentor. “I’ve admired the recipients of this award in previous years and always felt it was an esteemed award. I felt very grateful to be granted it for sure,” Mulroy said.
14. Mulroy earned the award, due in part to the time and talents she shares with The Maids franchise network. She is recognized by her peers as a consummate positive influence. She works well with other franchisees, lending a listening ear and advice, and giving her time to the network. Mulroy is in two performance groups, has served two terms on the Franchise Advisory Council, and has assisted with many franchise initiatives.
15. Mulroy says she tries to keep an open mind and believes strongly in solving problems using a collaborative approach. “I prefer an optimistic perspective as opposed to one riddled with negativity. I try to look at things from different perspectives.”
16. According to Bishop, “Lynn is one of the kindest people you could ever meet. She is very involved with the franchise network and often offers to be on the ground floor with many of The Maids International’s initiatives and has also helped countless franchisees on a one-on-one basis to help them achieve personal and business success. Lynn is very deserving of this award, and we thank her for her generosity in helping others.”
17. The Maids was founded in 1979 by Daniel J. Bishop in his hometown of Omaha, Nebraska. Bishop had already established a janitorial company called Bishop Building Services and wanted to offer residential cleaning services. The Maids focuses on making residential deep cleaning services available to everyone.
18. To help his business stand out from other cleaning services, Bishop developed a specific set-up, which features a four-person cleaning team and a recognizable yellow company car. The Maids concept was a hit from the start and Bishop began franchising just a year later. Today, The Maids has locations around the United States and Canada.
Entrepreneur’s Franchise 500
19. The Maids ranked No. 35 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of The Maids franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on The Maids’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 1,191
- Outlets at the End of the Year: 1,240
- Net Change: +49
- Outlets at the Start of the Year: 1,240
- Outlets at the End of the Year: 1,255
- Net Change: +15
- Outlets at the Start of the Year: 1,255
- Outlets at the End of the Year: 1,299
- Net Change: +44
- Outlets at the Start of the Year: 69
- Outlets at the End of the Year: 111
- Net Change: +42
- Outlets at the Start of the Year: 111
- Outlets at the End of the Year: 142
- Net Change: +31
- Outlets at the Start of the Year: 142
- Outlets at the End of the Year: 174
- Net Change: +32
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- Below is certain historic financial information regarding The Maids businesses operated by franchisees (“Franchisees”) or company-owned stores (“Company Stores”) that operated within the United States and Canada from October 1, 2018 through September 30, 2019.
- Canadian Franchisees submitted information in Canadian Dollars and The Maids converted that information to U.S. Dollars using the exchange rate in place at the time the information was submitted.
- The Maids has not presented any information for Franchisees that were not in operation for the full period.
- You should be aware that some of the Franchisees whose results were used to prepare this information have been in business for a long time, have had a greater opportunity to achieve these results than a new office operated by a new Franchisee, and it’s unlikely that a new Franchisee will achieve results like those reported.
- As of September 30, 2019, there were a total of 1,473 franchised and company-owned territories. A total of 117 Franchisees licensed and operated 1,299 of the 1,473 territories. The Maids operated the remaining 174 territories.
- A The Maids territory generally consists of approximately 10,000 Potential Customers, although some territories may be larger.
- The information presented in this report does not distinguish between Franchisees that purchased a large number of territories and those that did not purchase a large number of territories.
- The basis for the Franchisee information presented is weekly reports submitted to The Maids by its Franchisees and Company Stores operating throughout the periods represented, that form the basis for royalty payments.
- Of the 6,136 total weekly reports required from Franchisees, 2.3% or 141 were not received in time for the preparation of this statement and, therefore, could not be included in calculating the information presented.
Part 1 – Statement of Average Revenue Per Clean, Average Revenue Per Customer, and Percentage of Clean by Service by Franchisee and Territory
- The following statements are based on information reported by Franchisees that were in operation for the 12-month period from October 1, 2018 until September 30, 2019.
- There were 117 Franchisees operating in 1,299 territories as of September 30, 2019. Of those Franchisees, 111 operating in 1,258 territories were in operation for the entire 12-month period ended September 30, 2019.
- The Maids did not include information for the 6 Franchisees operating in 41 territories that were not in operation for the entire 12-month period ending September 30, 2019, or for the 10 Franchisees operating in 63 territories who did not submit complete reports.
- The statement includes the average revenue per clean, the average annual revenue per customer, and the percentage of total cleans by service for a regular maid service or special projects.
Regular Maid Service