FDD Talk: Mosquito Squad Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Mosquito Squad’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2012-2019 aggregate gross revenue (i.e. system-wide sales) for 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 the fiscal year ended December 31, 2019

• 2019 average and median gross profit margin for the 202 franchised Mosquito Squad businesses that reported this information to the franchisor

• 2019 average, median, highest, and lowest gross revenue by quartile for the 109 Mosquito Squad franchise owners that operated their Mosquito Squad businesses for at least one full operating season

• 2019 aggregate, average, median, highest, and lowest gross revenue by number of operating seasons (at least 1 full operating season to 7 or more full operating seasons) for the 109 Mosquito Squad franchise owners that operated their Mosquito Squad businesses for at least one full operating season

Section I – Background Information

17 Things You Need to Know About the Mosquito Squad Franchise

Appoints New COO and Announces HQ Relocation

1.  Near the end of September 2020, Mosquito Squad appointed Tom Swift as chief operating officer. Along with news of the appointment, Mosquito Squad also announced that the team was working towards establishing a new training system for the brand, which requires relocating the headquarters to Macon, Georgia.

2.  Swift started his entrepreneurial-driven career as a franchisee of America’s Swimming Pool Company (ASP), a member of the Authority Brands family. By 2008, Swift joined Stewart Vernon as co-owner and took on the title of COO, where he spent 12 years spearheading operational systems and processes. Swift now looks to implement the same mission and help Mosquito Squad grow their franchise revenue and expand the company’s reach nationally.

3.  Rob Weddle, CEO of Authority Brands, parent company of Mosquito Squad, said, “With a track record of success, we have already seen Tom’s capabilities to help grow a brand. As we look to expand Mosquito Squad, Tom is a key component to take the brand to the next level. Contributing his expertise, he has worked with the team to identify an opportunity for growth by relocating and we are looking forward to taking the next step to enhance the brand.”

4.  Mosquito Squad has been striving towards their goal of establishing World Class Training, World Class Sales, and World Class Operational Execution. As first steps towards this goal, the brand is reviewing and revamping training and this starts with where the headquarters is based out of. This development creates a joint ASP-Mosquito Squad campus in Macon, GA that will serve as the company headquarters. The new building was slated to be completed by the end of 2020.

5.  Developing the joint ASP-Mosquito Squad campus will provide the ability to host joint Meet Your Team Days for prospective franchisees and provide a beautiful campus as the brand revamps their training. In Macon, the campus will allow extensive hands-on training for new and existing franchisees.

6.  Swift said, “Being part of Authority Brands for several years now, I have been following Mosquito Squad and am so excited to help lead and expand this brand. We are working to improve our training and found that joining ASP to develop a campus will serve the company well to provide the space for hands-on training for our franchisees. With both ASP and Mosquito Squad being part of the Authority Brands family, it is best for us to utilize our resources where applicable.”

Opens First California Location

7.  In early March 2021, Mosquito Squad announced its debut in California with a new location in Roseville, CA. Owned and operated by first-time franchisees Rusty and Kimberly Cowan, Mosquito Squad of Roseville will open in Spring 2021 and provide the latest mosquito and tick protection to Roseville and surrounding communities.

8.  The Roseville location is the first to be introduced in California with a string of developments in the plans for 2021. Following the Roseville opening, Mosquito Squad plans to open additional California locations in Pasadena and Los Angeles.

9.  Rusty Cowan, franchisee of Mosquito Squad of Roseville, said, “Kimberly and I are overjoyed to bring Mosquito Squad to California. We were in search for a business that serves the community, keeps locals safe and allows an opportunity to conduct philanthropic initiatives. The leadership team, corporate and franchisees have been excellent resources that contribute to our success and continue to support us as we work to open our first location. Mosquito control is near and dear to me as I overcame West Nile, Meningitis and Encephalitis. After being infected with West Nile Virus in 2018, it sparked my desire to protect others from suffering like I did, especially in the California market where West Nile Virus is common.”

10.  The husband-and-wife duo has been actively involved in the community to speak out against Mosquito-borne diseases. In addition to the Roseville location, the Cowans are anticipating opening more territories next year in an effort to protect even more families and homes from these harmful diseases.

11.  Prior to joining Mosquito Squad, Rusty served time in the US Army, and owned a large real estate franchise that recruits talent, manages associates, and conducts training. His wife, Kimberly, previously worked in nursing where she enjoyed teaching patients about their health and wellness.

12.  Tom Swift, COO of Mosquito Squad, added, “We are so excited to expand in the West Coast market and watch the brand continue to grow. Mosquito Squad has been able to have such successful growth due to franchisees like Rusty and Kimberly. Their support and dedication reassures us that the first California location is in great hands.”

13.  Mosquito Squad uses the latest mosquito control barrier treatments, larvicide, and all-natural substances to eliminate mosquitoes and ticks from yards and outdoor spaces. The brand protects families (and pets) from the nuisance and danger of mosquitoes and ticks by offering top-of-the-line services that help customers take back their yards, including:

• Mosquito Control Barrier Protection – Acclaimed, trusted, and dependable mosquito control solution that eliminates mosquitoes on contact and provides residual protection for up to 3 weeks;
• Automatic Misting Systems – Continuous mosquito control;
• Special Event Treatments – Barrier treatment applied about 24-48 hours prior to guests’ arrival that includes extra protection against biting, stinging insects;
• Tick Control – Effective blend of barrier treatment and tick tubes to eliminate ticks before they can get to you.

Company History

14.  Mosquito Squad was founded in 2005 by Boyd Huneycutt and Scott Zide in Virginia. Huneycutt and Zide, who worked in the outdoor lighting business at the time, developed the idea for Mosquito Squad after they noticed that their light installers were constantly being attacked by mosquitoes. After some research, Huneycutt and Zide developed the Protective Barrier Treatment, a method that keeps mosquitoes, ticks, and other bugs out of yards for up to 21 days. This is now Mosquito Squad’s proprietary mosquito control method.

15.  After seeing how effective the Protective Barrier Treatment was, Huneycutt and Zide left their jobs in the outdoor lighting business to further develop the Mosquito Squad concept. Demand for Mosquito Squad’s services was high from the start and franchising started immediately.

16.  Over the next decade, Mosquito Squad grew around the United States and in 2018, the brand 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

17.  Mosquito Squad did not rank on Entrepreneur’s 2021 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 2020 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 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  204
• Outlets at the End of the Year:  225
• Net Change:  +21

2018

• Outlets at the Start of the Year:  225
• Outlets at the End of the Year:  229
• Net Change:  +4

2019

• Outlets at the Start of the Year:  229
• Outlets at the End of the Year:  227
• Net Change:  -2

Company-Owned

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

2019

• 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, 2020 FDD) and Analysis

Part 1 – Mosquito Squad Franchise System Sales for the Eight Fiscal Years Ending December 31, 2019

• The information provided in Part 1 is based on aggregate Gross Revenue (“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 the fiscal year ended December 31, 2019.

2012