FDD Talk: How Much Does a Mosquito Squad Franchise Make (Average Revenues and/or Profits)?

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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Mosquito Squad’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, maximum, and minimum gross revenue for the 107 Mosquito Squad franchisees (representing 217 territories) that were open and operating for any portion of the 2020 fiscal year

• 2020 average, median, lowest average, and highest average cost per lead for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

• 2020 average, median, lowest average, and highest average cost per sale for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

• 2020 average, median, maximum, and minimum close rate for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

• 2020 average, median, maximum, and minimum renewal rate for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

• 2020 average, median, maximum, and minimum revenue per treatment for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

• 2020 average, median, maximum, and minimum revenue per customer for the 83 Mosquito Squad franchisees (representing 151 territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement

Section I – Background Information

15 Things You Need to Know About the Mosquito Squad Franchise

Partners with Slingshot to Create Dedicated Pest Sales and Support Team

1.  In mid-March 2021, Slingshot, the modern customer support and sales solution for home services providers, and Mosquito Squad, an Authority Brands company, partnered to create a unique offering with industry specialists dedicated solely to Mosquito Squad franchises. These agents will work within Mosquito Squad’s CRM to qualify, sell, and schedule customers quickly and efficiently.

2.  Tom Swift, chief operating officer of Mosquito Squad, anticipates the impact of this partnership to be significant, “By giving franchise owners a fully-dedicated team of agents ready to serve and sell 24 hours a day, we are giving them the most valuable resource of all: time. Not having time to answer calls and respond to customers meant losing leads. With Slingshot, no more missed calls means no more missed revenue.”

3.  With over 50 percent of franchise owners already signed up, response has been overwhelmingly positive. Greg Atwell, owner of Mosquito Squad El Paso, says, “Slingshot gave us the semblance of being a big company because we can say we’re open 24/7. Slingshot agents don’t just take calls like an answering service, they can talk to the clients about our packages and sign them up. I tell people all the time that Slingshot is just another part of our company.”

4.  With the ability to engage customers through multiple communication channels in their Central Inbox platform, Slingshot agents will be able to respond to all Mosquito Squad leads via text, web chat, or form submits. This option has been a gamechanger for Atwell and his team, “As far as a system, I would say they are the best out there. Slingshot responding to web chats and calls after hours is priceless.”

5.  Chris Huntsman, co-founder of Slingshot, is determined to see it successful for both Mosquito Squad and parent company Authority Brands. Huntsman said, “We feel honored that Authority Brands has trusted us with the responsibility to provide such a valuable service to their Mosquito Squad family. This partnership will continue to deliver die-hard fans and customers for every franchise owner.”

Teams Up with America’s Swimming Pool Company to Launch Sweepstakes

6.  In early March 2021, America’s Swimming Pool Company (ASP) and Mosquito Squad joined forces to ensure homeowners could turn to their own backyards to enjoy the outdoors amidst the pandemic. With temperatures on the rise, backyards can become breeding grounds for mosquitoes if they’re not properly maintained.

7.  People are creating an escape in their own backyards and enjoying more time outside. ASP and Mosquito Squad are providing consumers with tips and best practices to protect themselves from mosquito- and water-borne illnesses, as well as offering homeowners the chance to win seasonal backyard maintenance packages through the #OperationOutdoorOasis sweepstakes.

8.  Tom Swift, COO of Mosquito Squad, said, “With continued COVID-19 concern plaguing Americans, consumers shouldn’t have the added stress of worrying about mosquito-borne illnesses this spring. Homeowners deserve a safe outdoor space to unwind and enjoy their downtime while continuing to practice social distancing.”

9.  America’s Swimming Pool Company and Mosquito Squad launched the #OperationOutdoorOasis sweepstakes to help transform a lucky winner’s backyard to their very own private sanctuary. The contest was open for entries beginning March 8 through May 3, 2021. Once entries closed, Mosquito Squad and ASP selected one winner at random and announced them on May 7. The winner received a full season mosquito protection package from Mosquito Squad and a complimentary pool maintenance package from ASP, both for the 2021 season.

10.  Stewart Vernon, founder and COO of America’s Swimming Pool Company, added, “A pool is a luxury investment, but the amount of time allotted for upkeep is often overlooked. Working alongside Mosquito Squad, we hope to provide homeowners with a new type of paradise just steps outside of their homes by providing tips on how to obtain a pristine pool and combat mosquitoes.”

Company History

11.  Mosquito Squad was founded in 2005 by Boyd Huneycutt and Scott Zide in Virginia. Before starting Mosquito Squad, Huneycutt and Zide were working in the outdoor lighting business. During their jobs, they and their fellow light installers were constantly attacked by mosquitoes.

12.  Huneycutt and Zide did some research and developed an effective way to keep mosquitoes and other pests out of a yard while they worked. They called their method the Protective Barrier Treatment, which keeps mosquitoes, ticks, and other bugs out of yards for up to 21 days. This became Mosquito Squad’s proprietary mosquito control technique.

13.  After witnessing how effective the Protective Barrier Treatment was, Huneycutt and Zide left the outdoor lighting business to further develop the Mosquito Squad concept. Because the treatment was so effective, demand for Mosquito Squad’s services grew quickly. Over the next decade, Mosquito Squad expanded around the United States.

14.  In 2018, the company 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

15.  Mosquito Squad did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Mosquito Squad franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  226
• Outlets at the End of the Year:  230
• Net Change:  +4

2019

• Outlets at the Start of the Year:  230
• Outlets at the End of the Year:  227
• Net Change:  -3

2020

• Outlets at the Start of the Year:  227
• Outlets at the End of the Year:  220
• Net Change:  -7

Company-Owned

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

2020

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

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Franchisee Average Gross Revenue

• As of December 31, 2020, there were 108 Franchisees representing 220 Territories open and operating.

• The table includes 107 Franchisees (representing 217 Territories) that were open and operating for any portion of the 2020 fiscal year.

• Some Franchisees operated multiple Territories; in these instances, the franchisor’s predecessor combined the Gross Revenue data for all Territories owned by that Franchisee.

• Part 1 excludes 1 Franchisee (representing 3 Territories) that did not report Gross Revenue and 1 company-owned outlet.

Quartile 1 (Top 25%)

• Number of Owners:  27
• Number of Territories:  86
• Average Revenue:  $1,954,278
• Median Revenue:  $1,150,621
• Maximum Revenue:  $7,253,719
• Minimum Revenue:  $906,279
• Number and Percentage Above Average:  8 (30%)

Quartile 2 (26-50%)

• Number of Owners:  27
• Number of Territories:  60
• Average Revenue:  $613,525
• Median Revenue:  $597,508
• Maximum Revenue:  $896,716
• Minimum Revenue:  $424,790
• Number and Percentage Above Average:  12 (44%)

Quartile 3 (51-75%)

• Number of Owners:  26
• Number of Territories:  39
• Average Revenue:  $291,135
• Median Revenue:  $288,601
• Maximum Revenue:  $406,075
• Minimum Revenue:  $183,679
• Number and Percentage Above Average:  12 (46%)

Quartile 4 (Bottom 25%)

• Number of Owners:  27
• Number of Territories:  32
• Average Revenue:  $103,288
• Median Revenue:  $97,143
• Maximum Revenue:  $179,558
• Minimum Revenue:  $5,508
• Number and Percentage Above Average:  5 (19%)

• Parts 2 through 6 below represent 83 Franchisees (representing 151 Territories) that were in operation for any portion of the 2020 fiscal year, reported information using Mosquito Squad’s CRM platform, and submitted a year-end profit and loss statement (“P&L”).

• Excluded from these tables are 13 Franchisees (representing 54 Territories) who did not report their data using Mosquito Squad’s approved reporting methods and an additional 10 Franchisees (representing 11 Territories) that did not submit a year-end P&L.

Part 2 – Cost Per Lead Average

• The table below sets forth the average cost that a Franchisee spends in marketing dollars to generate a prospective customer.

• The cost per lead is determined by dividing the franchisee’s total marketing spend for the fiscal year as reported on the franchisee’s Profit and Loss Statement by the total number of prospective customers as reported in the CRM system.

• A prospective customer is defined as any person who contacts the Franchisee and the Franchisee enters that person’s contact information into the CRM system as a new customer, meaning the customer had not been in the system in the prior year.

• The Franchisees are ranked by lowest cost per lead average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  37
• Average Cost Per Lead:  $31
• Median Cost Per Lead:  $36
• Lowest Average Cost Per Lead:  $6
• Highest Average Cost Per Lead:  $49
• Number and Percentage Above Average:  8 (40%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  37
• Average Cost Per Lead:  $68
• Median Cost Per Lead:  $70
• Lowest Average Cost Per Lead:  $49
• Highest Average Cost Per Lead:  $82
• Number and Percentage Above Average:  10 (48%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  39
• Average Cost Per Lead:  $95
• Median Cost Per Lead:  $92
• Lowest Average Cost Per Lead:  $83
• Highest Average Cost Per Lead:  $114
• Number and Percentage Above Average:  12 (57%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  38
• Average Cost Per Lead:  $146
• Median Cost Per Lead:  $139
• Lowest Average Cost Per Lead:  $117
• Highest Average Cost Per Lead:  $241
• Number and Percentage Above Average:  13 (62%)

Part 3 – Cost Per Sale Average

• The table below sets forth the average cost that a Franchisee spends in marketing dollars to generate a new customer.

• The cost per sales is determined by dividing the franchisee’s total marketing spend for the fiscal year as reported on the franchisee’s Profit and Loss Statement by the total number of new customers in the CRM system.

• A new customer is defined as a prospective customer who received at least one service appointment from a franchisee. A service appointment is defined as the application of a pesticide treatment at a property.

• The Franchisees are ranked by the lowest cost per sale average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  37
• Average Cost Per Sale:  $53
• Median Cost Per Sale:  $59
• Lowest Average Cost Per Sale:  $11
• Highest Average Cost Per Sale:  $85
• Number and Percentage Above Average:  10 (50%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  34
• Average Cost Per Sale:  $111
• Median Cost Per Sale:  $114
• Lowest Average Cost Per Sale:  $85
• Highest Average Cost Per Sale:  $132
• Number and Percentage Above Average:  8 (38%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  41
• Average Cost Per Sale:  $159
• Median Cost Per Sale:  $159
• Lowest Average Cost Per Sale:  $135
• Highest Average Cost Per Sale:  $184
• Number and Percentage Above Average:  10 (48%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  39
• Average Cost Per Sale:  $260
• Median Cost Per Sale:  $235
• Lowest Average Cost Per Sale:  $187
• Highest Average Cost Per Sale:  $444
• Number and Percentage Above Average:  16 (76%)

Part 4 – Close Rate Average

• The table below sets forth the average close rate for the included Franchisees in 2020.

• The close rate average is determined by dividing the Franchisee’s total number of new customers as reported in the CRM system by the total number of prospective customers as reported in the CRM system.

• The Franchisees are ranked by the highest close rate average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  31
• Average Close Rate:  78.1%
• Median Close Rate:  76.8%
• Maximum Close Rate:  96.6%
• Minimum Close Rate:  69.0%
• Number and Percentage Above Average:  9 (45%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  39
• Average Close Rate:  63.1%
• Median Close Rate:  62.9%
• Maximum Close Rate:  68.5%
• Minimum Close Rate:  59.6%
• Number and Percentage Above Average:  10 (48%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  40
• Average Close Rate:  56.8%
• Median Close Rate:  57.1%
• Maximum Close Rate:  59.0%
• Minimum Close Rate:  54.8%
• Number and Percentage Above Average:  11 (52%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  41
• Average Close Rate:  44.9%
• Median Close Rate:  45.9%
• Maximum Close Rate:  53.6%
• Minimum Close Rate:  29.8%
• Number and Percentage Above Average:  11 (52%)

Part 5 – Renewal Rate Average

• The table below sets forth the average renewal rate for the included Franchisees in 2020.

• The renewal rate is determined by dividing the Franchisee’s total number of renewal customers as reported in the CRM system by the total number of prior year customers as reported in the CRM system.

• A renewal customer is defined as a customer who received at least one service in 2019 and who received at least one service in 2020.

• A prior year customer is defined as any customer who received a service in 2019 but not in the current fiscal year.

• The Franchisees are ranked by the highest renewal rate average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  34
• Average Renewal Rate:  74.0%
• Median Renewal Rate:  73.6%
• Maximum Renewal Rate:  77.6%
• Minimum Renewal Rate:  71.8%
• Number and Percentage Above Average:  7 (35%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  45
• Average Renewal Rate:  70.0%
• Median Renewal Rate:  70.6%
• Maximum Renewal Rate:  71.8%
• Minimum Renewal Rate:  67.2%
• Number and Percentage Above Average:  12 (57%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  40
• Average Renewal Rate:  64.3%
• Median Renewal Rate:  64.5%
• Maximum Renewal Rate:  66.4%
• Minimum Renewal Rate:  62.0%
• Number and Percentage Above Average:  11 (52%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  32
• Average Renewal Rate:  54.0%
• Median Renewal Rate:  55.6%
• Maximum Renewal Rate:  60.9%
• Minimum Renewal Rate:  29.1%
• Number and Percentage Above Average:  14 (67%)

Part 6 – Revenue Per Service Appointment Average

• The table below sets forth the average revenue per treatment for the included Franchisees in 2020.

• The revenue per treatment is determined by dividing the total revenue generated in 2020 as reported on the Franchisee’s Profit and Loss Statement by the total number of service appointments in 2020 as reported in the CRM system.

• The Franchisees are ranked by the highest revenue per treatment average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  36
• Average Revenue Per Treatment:  $106
• Median Revenue Per Treatment:  $105
• Maximum Revenue Per Treatment:  $147
• Minimum Revenue Per Treatment:  $90
• Number and Percentage Above Average:  7 (35%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  47
• Average Revenue Per Treatment:  $82
• Median Revenue Per Treatment:  $83
• Maximum Revenue Per Treatment:  $89
• Minimum Revenue Per Treatment:  $79
• Number and Percentage Above Average:  11 (52%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  35
• Average Revenue Per Treatment:  $73
• Median Revenue Per Treatment:  $73
• Maximum Revenue Per Treatment:  $79
• Minimum Revenue Per Treatment:  $66
• Number and Percentage Above Average:  10 (48%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  33
• Average Revenue Per Treatment:  $58
• Median Revenue Per Treatment:  $59
• Maximum Revenue Per Treatment:  $66
• Minimum Revenue Per Treatment:  $39
• Number and Percentage Above Average:  12 (57%)

Part 7 – Revenue Per Customer Average

• The table below sets forth the average revenue per customer for the included Franchisees in 2020.

• The revenue per customer is determined by dividing the total revenue generated in 2020 as reported on the Franchisee’s Profit and Loss Statement by the sum of new customers plus renewal customers during 2020 as reported in the CRM system.

• The Franchisees are ranked by the highest revenue per customer average.

Quartile 1 (Top 25%)

• Number of Owners:  20
• Number of Territories:  43
• Average Revenue Per Customer:  $760
• Median Revenue Per Customer:  $715
• Maximum Revenue Per Customer:  $1,097
• Minimum Revenue Per Customer:  $622
• Number and Percentage Above Average:  8 (40%)

Quartile 2 (26-50%)

• Number of Owners:  21
• Number of Territories:  39
• Average Revenue Per Customer:  $563
• Median Revenue Per Customer:  $568
• Maximum Revenue Per Customer:  $610
• Minimum Revenue Per Customer:  $524
• Number and Percentage Above Average:  12 (57%)

Quartile 3 (51-75%)

• Number of Owners:  21
• Number of Territories:  37
• Average Revenue Per Customer:  $495
• Median Revenue Per Customer:  $486
• Maximum Revenue Per Customer:  $522
• Minimum Revenue Per Customer:  $470
• Number and Percentage Above Average:  10 (48%)

Quartile 4 (Bottom 25%)

• Number of Owners:  21
• Number of Territories:  32
• Average Revenue Per Customer:  $409
• Median Revenue Per Customer:  $418
• Maximum Revenue Per Customer:  $462
• Minimum Revenue Per Customer:  $318
• Number and Percentage Above Average:  12 (57%)

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

• The financial performance representations in the tables are historic information and not a forecast of future financial performance.

• The financial information Mosquito Squad utilized in preparing the preceding financial performance representations was based entirely upon information reported to it by Mosquito Squad franchisees. None of this information was audited or otherwise reviewed or investigated by Mosquito Squad or by any independent accountant or auditing firm, and no one has audited, reviewed, or otherwise evaluated this information for accuracy or expressed his/her opinion with regard to its content or form.

• The figures in the tables above do not reflect other fixed and variable costs and expenses associated with operating a Mosquito Squad franchise, including officer’s salaries, administrative salaries, automobile expenses, insurance costs, and advertising and marketing expenses, which must be deducted from the Gross Revenues to obtain your net income or profit.

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