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

• Section I – Estimated initial investment (franchise costs) for The Maids franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for The Maids franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned The Maids outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on The Maids franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of The Maids’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• fiscal year 2021 average revenue per clean, average annual revenue per recurring customer, and average percentage of cleans derived from regular maid service and special projects (one-time cleaning) for the 95 franchisees representing 1,260 territories that were in operation for the 12-month period from October 1, 2020 until September 30, 2021

• fiscal year 2021 high, low, average, and median revenue for the 95 franchisees representing 1,260 territories that were in operation for the 12-month period from October 1, 2020 until September 30, 2021

• fiscal year 2021 total revenue, service expenses, operating margin, administrative expenses, and net income for the 10 company stores representing 160 territories that were in operation for the full 12-month period from October 1, 2020 until September 30, 2021

• Section VI – Key ratios, comparables, computations, and analyses for The Maids franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Maids Franchise Costs

• The Maids franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Territory Fee:  $9,600 to $84,000
• SMART Start Package:  $16,900
• Office Security Deposit:  $0 to $2,150
• Office Fixtures, Decorating, and Furniture:  $500 to $2,000
• Auto Down Payments or Lease Payments and Paint or Wrap Installation:  $1,800 to $4,500
• Telephone and Internet:  $900 to $1,800
• Insurance Deposit:  $2,200 to $3,200
• Washer and Dryer:  $0 to $1,500
• Start-Up Professional Services:  $500 to $1,500
• Wages, Travel, and Living Expenses During SMART Start Training:  $900 to $4,850
• Additional Funds for 3 Months:  $23,900 to $33,500
• Estimated Total Costs:  $57,500 to $155,900

Section II – The Maids’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Maids’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Territory Fee:  $0.50 Per Household
• SMART Start Package:  $16,900
• Continuing License Fees:  6.9% to 3.9% of gross revenues; minimum Continuing License Fees may apply
• Advertising Fund Fee:  2% of gross revenues

Section III – Number of Franchised and Company-Owned The Maids Outlets

Franchised

2019

• Outlets at the Start of the Year:  1,255
• Outlets at the End of the Year:  1,299
• Net Change:  +44

2020

• Outlets at the Start of the Year:  1,299
• Outlets at the End of the Year:  1,364
• Net Change:  +65

2021

• Outlets at the Start of the Year:  1,364
• Outlets at the End of the Year:  1,423
• Net Change:  +59

Company-Owned

2019

• Outlets at the Start of the Year:  142
• Outlets at the End of the Year:  174
• Net Change:  +32

2020

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  174
• Net Change:  0

2021

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  160
• Net Change:  -14

Section IV – The Maids Franchise Background Information

11 Things You Need to Know About The Maids Franchise

Honors 2020 Team of the Year

1.  In June 2021, The Maids recognized Meena Chhetri, Yadira Suarez, and Angelica Castro of the Red Team at The Maids of the Triad as the 2020 Team of the Year during The Maids’ national award event on April 29, 2021. The Team of the Year award honors and recognizes The Maids team that consistently displays both exceptional quality and superior customer experience. The Red Team was chosen from over 700 teams among the over 180 franchises throughout the United States and Canada. In 2021, due to the pandemic, limited travel, and heightened safety protocols, The Maids Annual Growth Summit was canceled. In place of this, the award was presented virtually via The Maids’ national award event.

2.  The Red Team was nominated for the Team of the Year award by franchisees Hank and Maria Williamson, franchise owners of The Maids of the Triad. Together, the Red Team has over 15 years of experience at The Maids. Chhetri is the team leader, Suarez the assistant team leader, and Castro is a team member. The Red Team efficiently works as a unit from start to finish on every clean, dividing tasks in the home amongst themselves following The Maids’ proprietary 22-Step Cleaning Process. This was especially important when new rules and protocols were implemented amidst the pandemic.

3.  The result of the team’s hard work is evident in their customer satisfaction scores and online reviews. In fact, throughout her tenure as team leader, Chhetri has consistently led her team to five-star reviews on all social media platforms. Though the last year was challenging at times, the team was quick to adapt and maintain strong relationships with their existing clients and were exceptional at building trust with new ones. At every point, the customer experience was top of mind with no detail overlooked. The Red Team has “outstanding quality, service, productivity, and innovation – an owner’s dream team,” said franchisee Hank Williamson.

4.  Customer Pam Extrum said, “The Red Team is always cheerful and happy! It is a pleasure to see them every other week. They definitely make our lives much easier by keeping our home clean. We love the maids in charge of cleaning our house! They do an excellent job dusting and cleaning the floors, kitchen, and bathrooms. And, they are a tremendous help to us in keeping up with the pet hair. I really look forward to our clean house when I come home after working all day. I highly recommend their services. Thank you!”

Partners with Tide Cleaning to Launch Sweepstakes

5.  In early January 2022, The Maids partnered with Tide Cleaners to launch a sweepstakes with a grand prize of a free year of Tide Cleaners’ Wash and Fold Laundry service. There is no purchase necessary and people can enter the sweepstakes between April 5 and May 31, 2022. People can enter the sweepstakes by requesting a free house cleaning estimate from The Maids.

6.  Tide Cleaners’ Wash and Fold service does all the work for clients, giving them time back for the things they enjoy. Tide Cleaners will wash laundry based on a client’s preferences, lightly dry, promptly fold to prevent wrinkles, sort, and package it all. When a client gets their laundry back, it’s ready to be placed in the drawer.

7.  How the Wash and Fold Laundry service works:

• Place dirty laundry into any bag. Tide Cleaners will sort the laundry and check the pockets.
• Laundry is priced by the pound so don’t worry about how full the bag is.
• Drop the order off at Tide Cleaners, or schedule a home pickup. They will sort the items to ensure they are properly cleaned. Then, they expertly fold the items to Tide Cleaners’ standards.
• Clean laundry is bundled together and ready for pickup or delivery.

Company History

8.  The Maids was founded in 1979 by Daniel J. Bishop in his hometown of Omaha, Nebraska. Before starting The Maids, Bishop had owned and operated a janitorial company called Bishop Building Services since he was 21 years old. Building on the knowledge he had from running the janitorial company, Bishop developed a cleaning system based on four primary functions: Dusting, Bathroom Cleaning, Kitchen Cleaning, and Vacuuming. Bishop found that with this method, the cleaning teams were able to clean quickly and efficiently. To help The Maids stand out from its competitors, Bishop used yellow company cars, which are now one of the brand’s signature features.

9.  Bishop’s cleaning services were a success from the start and he started franchising The Maids in 1980. In 1995, The Maids became the first home cleaning business to clean for health. This was accomplished by using environmentally preferable cleaning products and a state-of-the-art back pack vacuum. As a result, The Maids developed a unique 22-Step Healthy Touch Deep Cleaning System.

10.  Today, The Maids is one of the largest cleaning companies in the United States. In 2020, The Maids was acquired by Gladstone Investment Corporation and Dan Kirwan.

Entrepreneur’s Franchise 500

11.  The Maids ranked No. 22 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Maids Franchise (Item 19, 2022 FDD)

• 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, 2020 through September 30, 2021.

• 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.

• As of September 30, 2021, there were a total of 1,583 franchised and company-owned territories. A total of 122 Franchisees licensed and operated 1,423 of the 1,583 territories. The Maids operated the remaining 160 territories.

• A The Maids territory generally consists of approximately 24,000 households, 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 5,798 total weekly reports required from Franchisees, 6.1% or 355 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 full 12-month period from October 1, 2020 until September 30, 2021.

• As of September 30, 2021, there were a total of 122 Franchisees licensed in 1,423 territories. The Maids included information from 95 Franchisees licensed in 1,260 territories that were in operation for the entire 12-month period ended September 30, 2021 and that submitted complete reports to The Maids (“Reporting Franchisees”).

• The Maids did not include information for 17 Franchisees in 110 territories that were not in operation for the entire 12-month period ending September 30, 2021 (because 11 Franchisees in 89 territories opened during that period, 1 Franchisee in 10 territories acquired territories from Company Stores, and 5 Franchisees in 11 territories acquired territories from Franchisees and temporarily ceased operating).

• The Maids also did not include information for 10 Franchisees operating in 53 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

• Average Revenue Per Clean:  $196.30
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  42 Franchisees/641 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  44.2% of Franchisees/50.9% of Territories
• Median Revenue Per Clean:  $191.15

• Average Annual Revenue Per Recurring Customer:  $4,494.17
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  43 Franchisees/645 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  45.3% of Franchisees/51.2% of Territories
• Median Annual Revenue Per Recurring Customer:  $4,445.33

• Average Percentage of Cleans by Type of Service:  87.9%
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  51 Franchisees/672 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  53.7% of Franchisees/53.3% of Territories
• Median Percentage of Cleans by Type of Service:  88.6%

Special Project

• Average Revenue Per Clean:  $322.27
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  36 Franchisees/583 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  37.9% of Franchisees/46.3% of Territories
• Median Revenue Per Clean:  $295.30

• Average Annual Revenue Per Recurring Customer:  $322.27
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  36 Franchisees/583 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  37.9% of Franchisees/46.3% of Territories
• Median Annual Revenue Per Recurring Customer:  $295.30

• Average Percentage of Cleans by Type of Service:  12.1%
• Total Number of Franchisees/Territories Included:  95 Franchisees/1,260 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  44 Franchisees/588 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  46.3% of Franchisees/46.6% of Territories
• Median Percentage of Cleans by Type of Service:  11.3%

• “Average Revenue Per Clean” means the average revenue received from a customer from one cleaning project (a “Clean”). It is calculated by dividing the total reported revenue by the total reported number of Cleans.

• “Average Annual Revenue Per Recurring Customer” means the total reported recurring revenue generated in one year from customers that had a service plan for more than one clean or a recurring customer. (The total amount of recurring revenue is divided by the total number of customers identified as a recurring customer.)

• “Percentage of Cleans by Type of Service” means the percentage of total reported number of Cleans derived from regular customers and Special Project customers. It is calculated by dividing the total reported number of Cleans for each category by the total reported number of Cleans and multiplying by 100%.

• “Special Projects” are one-time projects and are not regularly scheduled cleanings.

Part 2 – Statement of High Revenue, Low Revenue, Average and Median Revenue

• The following statements are based on information reported by Reporting Franchisees that were in operation for the 12-month period from October 1, 2020 until September 30, 2021.

Entire The Maids System

• Number of Franchisees/Territories:  95 Franchisees/1,260 Territories
• High Revenue:  $6,327,831
• Low Revenue:  $93,698
• Average Revenue:  $1,044,647
• Percentage of Franchisees That Met or Exceeded the Average:  34.7% of Franchisees/60.0% of Territories
• Number of Franchisees That Met or Exceeded the Average:  33 Franchisees/756 Territories
• Median Revenue:  $752,744
• Average Number of Regular Maid Service Customers:  204.55

• For the 12-month period from October 1, 2020, until September 30, 2021, the average revenue per territory for the 1,260 territories was $78,763.10.

• “Average Number of Regular Maid Service Customers” is calculated by taking the average revenue times 88.0% (the average percentage of cleans by regular maid service as shown in Part 1), and then dividing it by $4,494.17 (the average regular maid service customer revenue as shown in Part 1).

Part 3 – Statement of Revenue and Expense Information for Company Stores

• The following statements are based on information reported by Company Stores in 160 territories in 8 states that were in operation for the full 12-month period from October 1, 2020 until September 30, 2021.

• Company Stores operate under Franchise Agreements with The Maids, pay the same ongoing fees, and have the same local advertising requirements as other Franchisees.

• However, Company Stores may pay a lower percentage of Gross Revenue as a Continuing Fee than you because Company Stores’ weekly Gross Revenues allow Company Stores to pay a lower percentage of Gross Revenue as a Continuing Fee based on the Continuing Fee scale described in Item 6.

Average of 10 Company Stores (with a Combined 160 Territories)

Total Revenue:  $1,183,107 (100.0%)

Service Expenses

• Service Labor/Benefits/Payroll Taxes:  $565,337 (47.8%)
• Insurance – Workers’ Comp & Property Damage, Business Interruption:  $50,638 (4.3%)
• Cleaning Supplies:  $17,998 (1.5%)
• Customer Relations:  $2,128 (0.2%)
• Total Service Expenses:  $636,100 (53.9%)

Operating Margin:  $547,007 (46.1%)

Administrative Expenses

• Local Advertising:  $62,318 (5.3%)
• National Advertising Fund Fee:  $23,702 (2.0%)
• Employee Recruiting:  $9,841 (0.8%)
• Management Salaries/Benefits/Payroll Taxes:  $98,213 (8.3%)
• Sales Center Services:  $7,335 (0.6%)
• Professional Services:  $10,834 (0.9%)
• Credit Card Fees/Bank Services:  $24,619 (2.1%)
• Rent and Utilities:  $57,531 (4.9%)
• Automobile/Equipment Expense:  $39,056 (3.3%)
• Telephone:  $7,811 (0.7%)
• National Technology Fund Fee:  $2,938 (0.2%)
• Office Supplies:  $2,502 (0.2%)
• Continuing Licensing Fee:  $62,712 (5.3%)
• Depreciation and Amortization Expense:  $17,515 (1.5%)
• Interest Expense:  $ – (0%)
• Other Expense:  $10,428 (0.9%)
• Total Administrative Expenses:  $437,354 (37.0%)

Net Income:  $109,653 (9.3%)

• The highest annual revenue for Company Stores is $2,597,157 and the lowest annual revenue for Company Stores is $688,875.

• 3 of the 10 (30%) Company Stores met or exceed the average annual revenue.

• Company Stores may incur higher management salaries and related benefits than a Franchisee who is an owner-operator.

Section VI – The Maids Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️