In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the MaidPro franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a MaidPro franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a MaidPro franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned MaidPro 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 MaidPro’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• average, median, lowest, and highest total monthly gross sales, monthly recurring gross sales, and monthly one-time sales for the 231 franchised MaidPro businesses, operated by 142 franchisees, in operation a minimum of 12 months as of October, 2019 and still in continued operations as of December 31, 2019 (“Same Franchised Units”)

• average, median, lowest, and highest total monthly gross sales, monthly recurring gross sales, and monthly one-time sales for a subset of 50 of the Same Franchised Units that met the definition above and had multiple units in operation

Section I – Background Information

18 Things You Need to Know About the MaidPro Franchise

Introduces Emergency COVID-19 Disinfecting Program for Homes and Businesses

1.  In mid-March 2020, MaidPro introduced a Daily Disinfecting Defense program for office and commercial spaces in response to the rising spread of COVID-19. The program focuses on disinfecting the common areas and other high-touch zones of an office or commercial building that are most likely to transmit germs.

2.  The service includes cleaning and disinfecting the following surfaces: kitchen and dining areas, conference rooms and corresponding technology (phones, keyboards, touch screens), and other common spaces (main door knobs, light switches, tabletops, and chair arms of shared rooms). The service can also be tailored to fit customers’ specific needs or areas.

3.  Melissa Homer, MaidPro’s chief cleaning officer, said, “We are in a unique position to help battle the Coronavirus. We want to be completely transparent in how we are handling this situation. Our locations are locally owned and operated, which means we are staying up-to-date on the area’s latest legal requirements and safety recommendations. The health and safety of our PROs and your family are of the utmost importance to us. All of our staff have taken a Coronavirus Cleaning Course which details, down to the science, how to best protect and disinfect themselves and your homes from the virus.”

4.  While many businesses, schools, and elderly homes have janitorial services, MaidPro is focusing on the deep, disinfecting cleans. Many routine janitorial services include light cleaning and tidying up. There is a vast difference between “sanitizing’ and “disinfecting;” disinfection being the only procedure to kill the COVID-19 virus. MaidPro uses hospital-grade disinfectants to ensure customers’ homes are safe.

5.  MaidPro has detailed how it is keeping its PROs and clients safe:

• All of the company’s PROs are trained in Coronavirus cleaning. They have completed a 45-minute course that details, down to the exact chemistry, the proper procedure for cleaning and eliminating COVID-19.

• All PROs wear gloves at all times. The gloves are changed throughout the cleaning process and sealed into bags when the PROs are finished. Special techniques are used to put on and remove the gloves.

• Although the CDC did not recommend the use of masks at the time (CDC guidelines have since changed), many offices had them available at the request of the PRO or client.

• MaidPro uses hospital-grade disinfectants and color-coded towels to ensure there is no cross-contamination in the home and all viruses are killed.

• The hospital-grade disinfectants are sprayed onto the surface and let sit for 10 minutes before being cleaned off. This ensures the disinfection can be fully effective.

• Each PRO has a daily check-in with their manager. They are to stay home if they are sick, may have been exposed to the virus, or are living with someone that is sick or may have been exposed.

• Each client is emailed and called before their clean to confirm if they are self-quarantining or if they are sick or may have been exposed to the virus.

Franchise Opportunities Spark Light for Economic Pandemic Recovery

6.  In mid-May 2020, MaidPro announced new discounts to help frontline workers and those recently unemployed become business owners. These discounts, valued at $15,000, will work to help first responders, doctors, nurses, and other frontline workers to purchase their own franchise business. MaidPro also offers financing and other financial assistance to those who do not qualify for the discount.

7.  The announcement came as thousands in the U.S. had been left jobless or with reduced paychecks in the wake of COVID-19. According to the US Bureau of Labor Statistics, over 33 million Americans had filed for unemployment over the previous six weeks. Forbes had published that 42% of all COVID-19 job losses will be permanent, leaving approximately 14 million people without pay.

8.  MaidPro is still continuing to welcome new franchise owners to their system as many are now turning to the franchise industry for a new way to supplement their income and gain control over their futures. Not all franchises are built the same; there are a few industries considered recession-resistant and have continued to thrive despite the pandemic. More specifically, the home cleaning industry (including MaidPro) has been deemed essential in many areas around the United States, and thus the businesses were not forced to shut down.

9.  Mark Kushinsky, CEO of MaidPro, said, “While home cleaning may not be the sexiest business around, it is recession resistant and a service that will remain in demand. Owning a franchise is a great way to have more control over your financial future. We are so thankful for those who are working to battle this virus and we hope to be of help to those looking for a new career or lifestyle.”

Names Primoprint as Exclusive Print Partner

10.  At the end of January 2020, Primoprint announced an official partnership with MaidPro as its exclusive print partner, just in time for the annual International Franchise Association Convention in Orlando, Florida. The partnership includes over 220 franchises including MaidPro, FlyFoe, and Men in Kilts. MaidPro Franchising relies on Primoprint’s Business Automated Platform (BAP) to maintain the integrity of their corporate brand and marketing materials.

11.  MaidPro began printing with Primoprint in 2016 and attributes the official partnership to Primoprint’s BAP creation in 2018, designed specifically so that franchisors can customize their branded marketing materials. The BAP allows Primoprint to collaborate directly with corporate marketing teams, utilizing the franchisor’s brand identity guidelines and incorporating franchise-specific customization. The result is an integrated printing solution for franchisees to obtain branded print products including business cards, door hangers, greeting cards, brochures, letterhead and envelopes, signage, NCR forms, and presentation folders.

12.  Mark Kushinsky, co-founder and CEO of MaidPro, said, “We pride ourselves on our creative branding, and Primoprint’s BAP enables us to seamlessly deploy marketing materials nationwide, to every location. The partnership with Primoprint is creating a unified, user-friendly experience for our busy, hardworking franchisees – and by extension, for our customers.”

13.  Xhenis Levack, co-founder and CEO of Primoprint, added, “It can be tough for franchisors to maintain their brand identity across locations, especially when there are so many facets to their marketing efforts. We are proud to partner with MaidPro and to connect each small business owner with the unique marketing materials they need.”

Company History

14.  MaidPro was founded in 1991 by Mark Kushinsky and Richard Sparacio in Boston, Massachusetts. Kushinsky wanted to start his own cleaning service after using subpar, yet expensive cleaning companies. Deeply disappointed, Kushinsky shared his experience with Sparacio and they developed the idea for MaidPro.

15.  After a few years of running the business, Kushinsky and Sparacio began looking for software to automate the company’s operations. Once again, Kushinsky and Sparacio couldn’t find anything to fulfill their needs and ended up developing MaidSoft, MaidPro’s proprietary service management software, in 1994.

16.  Word got around about MaidSoft’s efficiency and Kushinsky and Sparacio began selling the software to other companies in 1996. The following year, Kushinsky and Sparacio began franchising the MaidPro concept and grew to five locations by the end of the 1990s.

17.  MaidPro’s growth picked up quickly and by the next decade, the franchise had grown to 100 locations and had cleaned over 250,000 homes. Also around that time, MaidPro opened its first international location in Canada. Today, there are MaidPro locations all across North America.

Entrepreneur’s Franchise 500

18.  MaidPro ranked No. 111 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of MaidPro 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 MaidPro’s 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

Franchised

2017

• Outlets at the Start of the Year:  227
• Outlets at the End of the Year:  249
• Net Change:  +22

2018

• Outlets at the Start of the Year:  249
• Outlets at the End of the Year:  258
• Net Change:  +9

2019

• Outlets at the Start of the Year:  258
• Outlets at the End of the Year:  269
• Net Change:  +11

Company-Owned

2017

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• The information provided is a historic financial performance representation about a subset of the MaidPro franchise system’s existing outlets.

• Because business maturation can take up to 12 months or longer, MaidPro is reporting only on those businesses open 12 months or more.

• Based on MaidPro’s 29 years of experience in the residential cleaning industry, MaidPro is selecting offices that have been in business a minimum of 12 months, as MaidPro expects it takes this length of time to secure an appropriate location for the business, acquire a branded company vehicle, successfully complete its extensive training process, stabilize their employee recruitment, acquire a recurring revenue base, and demonstrate their ability to implement on all required and/or recommended processes.

• If a franchisee had more than one territory, the Gross Sales include revenues from all of the franchisee’s territories.

• “Gross Sales” will mean and include all revenues and income from whatever source derived and/or received by the franchisee from, through, by, or on account of the operation of the Franchised Business. No items have been deducted from Gross Sales.

• Based upon the performance of the franchises which were in operation for a minimum of 12 months as of October 1, 2019, MaidPro is providing the following disclosure of the actual averages for these units.

• October 2019 was selected as it is the month that had the largest number of active Franchised Businesses that meet the definition of “Same Franchised Units” found below.

• MaidPro defines “Same Franchised Units” as a Franchised Business in operation a minimum of 12 months as of October 1, 2019 and still in continued operations as of December 31, 2019.

• Out of the 253 Franchised Businesses, operated by 164 franchisees, that were in operation on October 1, 2019, MaidPro is reporting on 231 Franchised Businesses, operated by 142 franchisees, which complies with the definition for Same Franchised Units.

• MaidPro’s former company-owned Massachusetts location is not included in this item.

• Monthly Gross Sales, however, will fluctuate somewhat throughout the year. The locations of the Franchised Businesses are across the United States, and the Franchised Businesses are located in both major metropolitan areas, suburban areas, and rural areas.

• The figures below, which reflect Gross Sales, not profits, were calculated based upon information reported to MaidPro by its franchisees in MaidPro’s cloud-based software which is used by MaidPro for calculating Royalties.

• The figures were as of April 16, 2020. Any revisions or updates after this date, made by MaidPro or its franchisees, will affect the figures. MaidPro’s cloud-based software is housed within Salesforce.com Software.

• The figures below have not been audited by MaidPro.

• The figures do not reflect all costs of sales, operating expenses, or other costs and expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.

Part 1 – Average Same Franchised Unit Data for Month Ending October 31, 2019

• The Average Same Franchised Unit data for the month ending October 31, 2019 is as follows: