Mosquito Squad Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)

1.  Franchise Fee:  $40,000

• The amount listed assumes you pay the standard Franchise Fee for a Standard Territory and there is no applicable Additional Population Fee or Existing Customer Fee. If a Conversion Discount applies, the Franchise Fee will range from $5,000 to $40,000.

• Mosquito Squad may permit you to finance the Franchise Fee.

2.  Travel and Living Expenses While Training:  $500 to $1,000

• Your Owners and the management personnel Mosquito Squad designates must complete the initial training program in Macon, Georgia or at another location Mosquito Squad designates.

• Your travel expenses and living costs will vary depending on your point of origin, method of travel, class of accommodation and choice of restaurants, local transportation, etc.

3.  Business Outfitting Fee:  $4,030

4.  Operations Outfitting Fee:  $1,735

5.  Truck Outfitting Fee:  $3,500

6.  Tools and Equipment:  $2,000 to $3,000

7.  Computer Systems:  $800 to $2,000

8.  Software:  $1,500 to $5,235

• The estimate is for obtaining the computer, related devices, software, and services you will need to meet Mosquito Squad’s technology requirements, including the ServiceMinder software with current monthly fees of $185 plus $25 per user.

9.  Inventory:  $1,200 to $6,500

• Your initial inventory and supplies will typically include several complete pest elimination and control systems and related parts, plus sufficient start-up barrier treatment product.

• Mosquito Squad has the right to change the required inventory and supplies at any time.

10.  Storage Facility for Inventory and Equipment:  $0 to $200

• The low end of the range assumes that you already own adequate storage space.

• If you do not own adequate storage space either in your home or at an external storage facility, you must lease space to store your inventory and supplies for your Franchised Business.

• Local law may require that your storage facility be located in a commercial (non-residential) area. You are responsible for determining if there are any requirements regarding the location of your storage facility.

• If you lease space, you will generally be required to pay first and last months’ rent, plus a security deposit, at the time you sign the lease.

• In most cases, the terms and conditions of all agreements relating to the purchase, lease, and alteration of the property will be negotiated solely by you; however, Mosquito Squad may require you to incorporate certain provisions into your lease.

11.  Insurance:  $3,000 to $3,500

• The estimate assumes a 25% deposit plus 3 months of payments on the first year premium for general business liability and property/casualty insurance (estimated between $1,000 and $2,000), automobile insurance (estimated between $2,000 and $2,500), and workers’ compensation (estimated between $2,000 and $2,500).

• Premiums will vary depending on the state and driving record of the individual.

12.  Vehicle:  $0 to $900

• You will need at least one service vehicle that meets Mosquito Squad’s standards. Mosquito Squad does not require that you purchase a vehicle if you already own a suitable light duty pickup truck in good condition.

• The low end of the range assumes that you already own a suitable light duty pickup truck.

• If you do not already own a suitable light duty pickup truck, you must either lease or purchase one. The high end of the range assumes that you will lease a light duty pickup truck.

• A light duty pickup truck can be leased, depending on your credit and the auto dealer, with an approximate $250 to $500 deposit and monthly payments negotiated with the auto dealer.

13.  Vehicle Signage:  $1,800 to $2,400

• You must purchase signage wrap for your service vehicle.

14.  Initial Marketing Expenses:  $5,000 to $10,000

• You will pay Mosquito Squad a fee for pre-opening and grand opening marketing.

15.  Telephone Services:  $200 to $400

• The telephone numbers and electronic identities you use in connection with the Franchised Business will be owned and controlled by Mosquito Squad or an approved supplier.

• Mosquito Squad requires you to “port” or transfer all phone numbers to an approved call routing and tracking supplier. The cost for this service and the new telephone number will vary, but Mosquito Squad estimates it will cost you $62 per month depending on the number of telephone lines you require.

• The estimate for telephone services covers the first month only and assumes three telephone lines.

• Mosquito Squad also recommends, but does not require, that you use a Call Center to provide “live” voice answering services. In order to obtain Call Center services, you will likely need to pay a one-time set up fee plus your first month’s subscription fee.

16.  Additional Funds for 6 Months:  $42,700 to $82,750

• This is an estimate of additional funds you may need during the initial period of operation of the Franchised Business, which Mosquito Squad defines as three months from opening.

• New businesses often generate a negative cash flow initially, so additional funds may be needed to support on-going expenses such as payroll, rent, royalties, Brand Fund contributions, inventory, utilities, and business licenses, to the extent that aggregate costs are not covered by the revenue you generate.

• The estimate does not include taxes, financing costs, or any compensation that you may choose to pay yourself.

17.  Total:  $107,965 to $167,150

• These figures are estimates only. You may incur additional expenses starting your Franchised Business.

• The franchisor relied on its predecessor’s experience in working with Franchised Businesses to compile these estimates.