Merry Maids: $438K Average Sales Per Qualified Franchise vs. $98K-$144K Franchise Cost (Full-Sized Territory)

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

Section I – Estimated initial investment (franchise costs) for a Merry Maids franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Merry Maids franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Merry Maids outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Merry Maids franchise opportunity

Section V – Presentation and analysis of Merry Maids’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average, median, highest, and lowest gross sales for the top 10%, top quartile, 2nd quartile, 3rd quartile, bottom quartile, bottom 10%, and all 380 Merry Maids qualified franchises (i.e., active franchises that operate an office within the assigned territory for such franchised business)

• 2022 average, median, highest, and lowest gross sales for the 380 Merry Maids qualified franchises, grouped by territory size (full-sized, mid-sized, and small-sized)

• 2022 average, median, highest, and lowest gross sales for the top 10%, top quartile, 2nd quartile, 3rd quartile, bottom quartile, bottom 10%, and all 273 Merry Maids franchise ownership groups with active franchises in the covered period

• 2022 average, median, highest, and lowest gross sales per franchise ownership group and per active franchise for the 273 Merry Maids franchise ownership groups with active franchises in the covered period, grouped by number of active franchises in the franchise ownership group

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

Section I – Merry Maids Franchise Costs

• Merry Maids franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Fee:  Full-Sized Territory: $41,500 to $51,500; Mid-Sized Territory: $41,500; Small-Sized Territory: $37,500
• Travel and Living Expenses During Training:  $600 to $1,500
• Real Estate and Improvements:  $2,000 to $4,000
• Software and Tablet:  $900 to $2,100
• Office Equipment:  $5,250 to $6,850
• Opening Inventory Package Expenses:  $300 to $600
• Insurance:  $3,400 to $9,400
• Employee Screening:  $80 to $160
• Telephone Answering Service:  $50 to $300
• Online Marketing Fund Deposit:  $3,000
• Miscellaneous Opening Costs:  $1,400 to $10,000
• Professional Fees:  $5,000 to $15,000
• Additional Funds (3 months):  $35,000 to $40,000
• Total Estimated Merry Maids Franchise Costs:  Full-Sized Territory: $98,480 to $144,425; Mid-Sized Territory: $98,480 to $134,410; Small-Sized Territory: $94,480 to $130,410

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

• Merry Maids’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Fee:  Full-Sized Territory: $41,500 to $51,500; Mid-Sized Territory: $41,500; Small-Sized Territory: $37,500
• Royalty:  7% of Gross Sales
• Ad Fund Contribution:  1.3% of Gross Sales per week

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

Franchised

2020

• Outlets at the Start of the Year:  1,005
• Outlets at the End of the Year:  1,000
• Net Change:  -5

2021

• Outlets at the Start of the Year:  1,000
• Outlets at the End of the Year:  996
• Net Change:  -4

2022

• Outlets at the Start of the Year:  996
• Outlets at the End of the Year:  958
• Net Change:  -38

Company-Owned

2020

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  0
• Net Change:  -3

2022

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

Section IV – News Updates on the Merry Maids Franchise

• Merry Maids Secures Spot on Franchise Times 2023 Top 400 List

• Merry Maids Names Jean Grossman President

• Four Top-Ranking ServiceMaster Brands Actively Recruiting Franchise Owners

• Merry Maids Ranked No. 102 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Merry Maids Franchise (Item 19, 2023 FDD)

• This Item 19 presents information about the financial performance during the period January 1, 2022 to December 31, 2022 (the “Covered Period”) for certain Franchised Businesses that were Active Franchises throughout the Covered Period.

• An “Active Franchise” is a Franchised Business that (i) opened prior the Covered Period, (ii) reported Gross Sales in all 12 months of the Covered Period, and (iii) was owned by the same owner throughout the Covered Period.

• Merry Maids recommends that all franchisees operate an office within the Territory for each Franchised Business and requires new franchisees to have an office that is located within a 60-minute drive of all addresses within their Territory.

• Some of Merry Maids’ existing franchisees have been permitted to operate one or more Franchised Businesses from an office that is located outside of their Territory and outside of a 60-minute drive radius.

• In this Item 19, Merry Maids refers to Active Franchises that operate an office within the assigned Territory for such Franchised Business as a “Qualified Franchise,” and Active Franchises that do not operate an office within the assigned Territory for such Franchised Business as a “Remote Office Franchise.”

• In addition, in this Item 19, Merry Maids has presented some data by Franchise Ownership Groups. A “Franchise Ownership Group” or “FOG” consists of one or more Franchised Businesses that are owned by one or more entities that are affiliated with each other by common ownership. Merry Maids believes Franchise Ownership Groups are the best measurement of its franchisee’s actual business operations, as many of its franchisees operate multiple Franchised Businesses within one overall business.

• This Item 19 does not include data related to (i) company-owned units and (ii) Franchised Businesses that were not Active Franchises operating throughout all of the Covered Period, because such Franchised Businesses opened, closed, were reacquired by Merry Maids, or were transferred to a new owner during the Covered Period or did not report Gross Sales for all 12 months of the Covered Period.

• In the tables below, Merry Maids has presented (i) Gross Sales data for all Qualified Franchises that operated throughout the Covered Period, (ii) Gross Sales data for all Franchise Ownership Groups with Active Franchises that operated throughout the Covered Period, and (iii) Gross Sales data for both Active Franchises and Franchise Ownership Groups, organized by number of Active Franchises within each Franchise Ownership Group.

Part 1A – Gross Sales for Qualified Franchises in the Covered Period

Top 10%

• Number of Qualified Franchises:  38
• Average Gross Sales:  $1,023,937
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  14 / 36.8%
• Median Gross Sales:  $954,949
• Lowest Gross Sales:  $821,373
• Highest Gross Sales:  $1,542,651

Top Quartile

• Number of Qualified Franchises:  95
• Average Gross Sales:  $822,548
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  37 / 38.9%
• Median Gross Sales:  $800,079
• Lowest Gross Sales:  $568,866
• Highest Gross Sales:  $1,542,651

2nd Quartile

• Number of Qualified Franchises:  95
• Average Gross Sales:  $453,203
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  48 / 50.5%
• Median Gross Sales:  $456,398
• Lowest Gross Sales:  $360,768
• Highest Gross Sales:  $566,699

3rd Quartile

• Number of Qualified Franchises:  95
• Average Gross Sales:  $299,286
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  44 / 46.3%
• Median Gross Sales:  $297,065
• Lowest Gross Sales:  $236,314
• Highest Gross Sales:  $360,223

Bottom Quartile

• Number of Qualified Franchises:  95
• Average Gross Sales:  $159,849
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  49 / 51.6%
• Median Gross Sales:  $164,803
• Lowest Gross Sales:  $8,002
• Highest Gross Sales:  $234,546

Bottom 10%

• Number of Qualified Franchises:  38
• Average Gross Sales:  $104,379
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  22 / 57.9%
• Median Gross Sales:  $114,286
• Lowest Gross Sales:  $8,002
• Highest Gross Sales:  $150,878

Total

• Number of Qualified Franchises:  380
• Average Gross Sales:  $433,722
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  154 / 40.5%
• Median Gross Sales:  $360,495
• Lowest Gross Sales:  $8,002
• Highest Gross Sales:  $1,542,651

Part 1B – Gross Sales by Market Size for Qualified Franchises in the Covered Period

Full-Sized Territory

• Number of Qualified Franchises:  259
• Average Gross Sales:  $438,409
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  105 / 40.5%
• Median Gross Sales:  $352,643
• Lowest Gross Sales:  $8,002
• Highest Gross Sales:  $1,542,651

Mid-Sized Territory

• Number of Qualified Franchises:  38
• Average Gross Sales:  $422,642
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  16 / 42.1%
• Median Gross Sales:  $376,038
• Lowest Gross Sales:  $98,059
• Highest Gross Sales:  $997,131

Small-Sized Territory

• Number of Qualified Franchises:  83
• Average Gross Sales:  $424,166
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  33 / 39.8%
• Median Gross Sales:  $368,318
• Lowest Gross Sales:  $109,116
• Highest Gross Sales:  $1,006,804

All Territories

• Number of Qualified Franchises:  380
• Average Gross Sales:  $433,722
• Number and Percentage of Qualified Franchises Attaining or Exceeding Average Gross Sales:  154 / 40.5%
• Median Gross Sales:  $360,495
• Lowest Gross Sales:  $8,002
• Highest Gross Sales:  $1,542,651

• As of December 31, 2022 (the end of the Covered Period), there were 958 Franchised Businesses. Of those 958 Franchised Businesses, 849 were Active Franchises. Of those 849 Active Franchises, 380 were Qualified Franchises that are represented in these tables.

• These tables do not include (i) 91 Franchised Businesses that did not operate through all 12 months of the Covered Period (including 4 that opened during the Covered Period), (ii) 18 Franchised Businesses that were transferred to a new owner in the Covered Period, and (iii) 469 Remote Office Franchises that were Active Franchises.

• These tables also do not include 42 Franchised Businesses that ceased operating in the Covered Period (none of which had opened within the 12 months prior to the date such Franchised Business closed).

• As defined in Item 1, a Small-Sized Territory contains up to 20,000 Qualified Households, a Mid-Sized Territory contains 20,000 to 39,999 Qualified Households, and a Full-Sized Territory contains 40,000 or more Qualified Households.

Part 2 – Gross Sales for Franchise Ownership Groups with Active Franchises in the Covered Period

Top 10%

• Number of Franchise Ownership Groups:  27
• Average Gross Sales:  $3,078,657
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  10 / 37%
• Median Gross Sales:  $2,650,416
• Lowest Gross Sales:  $1,856,659
• Highest Gross Sales:  $5,890,121

Top Quartile

• Number of Franchise Ownership Groups:  68
• Average Gross Sales:  $2,127,265
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  19 / 27.9%
• Median Gross Sales:  $1,721,265
• Lowest Gross Sales:  $1,235,583
• Highest Gross Sales:  $5,890,121

2nd Quartile

• Number of Franchise Ownership Groups:  68
• Average Gross Sales:  $933,264
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  29 / 42.6%
• Median Gross Sales:  $907,752
• Lowest Gross Sales:  $688,033
• Highest Gross Sales:  $1,232,006

3rd Quartile

• Number of Franchise Ownership Groups:  68
• Average Gross Sales:  $549,606
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  36 / 52.9%
• Median Gross Sales:  $552,639
• Lowest Gross Sales:  $416,884
• Highest Gross Sales:  $687,051

Bottom Quartile

• Number of Franchise Ownership Groups:  69
• Average Gross Sales:  $267,888
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  36 / 52.2%
• Median Gross Sales:  $280,380
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $414,992

Bottom 10%

• Number of Franchise Ownership Groups:  27
• Average Gross Sales:  $169,111
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  14 / 51.9%
• Median Gross Sales:  $170,374
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $248,447

Total

• Number of Franchise Ownership Groups:  273
• Average Gross Sales:  $966,936
• Number and Percentage of Franchise Ownership Groups Attaining or Exceeding Average Gross Sales:  92 / 33.7%
• Median Gross Sales:  $687,051
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $5,890,121

• As of December 31, 2022 (the end of the Covered Period), there were 303 Franchise Ownership Groups. Of those 303 Franchise Ownership Groups, 273 (90%) Franchise Ownership Groups had at least one Active Franchise throughout the Covered Period and are represented in this table. No Franchise Ownership Groups did not report Gross Sales through all 12 months of the Covered Period.

• This table does not include 22 Franchise Ownership Groups that did not report Gross Sales through all 12 months of the Covered Period, six Franchise Ownership Groups that transferred all of their Active Franchises to another Franchise Ownership Group during the Covered Period, and two Franchise Ownership Groups that began operating all of their Active Franchises during the Covered Period.

• This table also does not include 10 Franchise Ownership Groups that ceased operating all of their Franchised Businesses in the Covered Period.

• This table reflects the financial performance of both Qualified Franchises and Remote Office Franchises.

Part 3 – Gross Sales by Number of Active Franchises in Franchise Ownership Group in the Covered Period

1 Active Franchise in Franchise Ownership Group

• Number of Franchise Ownership Groups:  88
• Average Gross Sales:  $496,687
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  33 / 39.3%
• Median Gross Sales:  $442,864
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $1,542,651

• Number of Active Franchises:  84
• Average Gross Sales:  $496,687
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  33 / 39.3%
• Median Gross Sales:  $442,864
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $1,542,651

2 Active Franchises in Franchise Ownership Group

• Number of Franchise Ownership Groups:  72
• Average Gross Sales:  $660,860
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  27 / 37.5%
• Median Gross Sales:  $597,179
• Lowest Gross Sales:  $71,025
• Highest Gross Sales:  $2,793,015

• Number of Active Franchises:  144
• Average Gross Sales:  $330,430
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  54 / 37.5%
• Median Gross Sales:  $254,409
• Lowest Gross Sales:  $17,588
• Highest Gross Sales:  $1,422,216

3 to 4 Active Franchises in Franchise Ownership Group

• Number of Franchise Ownership Groups:  68
• Average Gross Sales:  $1,016,219
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  29 / 42.6%
• Median Gross Sales:  $924,611
• Lowest Gross Sales:  $241,256
• Highest Gross Sales:  $2,147,036

• Number of Active Franchises:  228
• Average Gross Sales:  $303,083
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  88 / 38.6%
• Median Gross Sales:  $229,753
• Lowest Gross Sales:  $4,609
• Highest Gross Sales:  $1,148,104

5 to 7 Active Franchises in Franchise Ownership Group

• Number of Franchise Ownership Groups:  33
• Average Gross Sales:  $1,461,149
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  15 / 45.5%
• Median Gross Sales:  $1,350,602
• Lowest Gross Sales:  $241,643
• Highest Gross Sales:  $2,719,456

• Number of Active Franchises:  190
• Average Gross Sales:  $253,778
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  81 / 42.6%
• Median Gross Sales:  $218,253
• Lowest Gross Sales:  $13,727
• Highest Gross Sales:  $921,719

8 to 24 Active Franchises in Franchise Ownership Group

• Number of Franchise Ownership Groups:  16
• Average Gross Sales:  $3,584,311
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  7 / 43.8%
• Median Gross Sales:  $3,752,470
• Lowest Gross Sales:  $1,249,471
• Highest Gross Sales:  $5,890,121

• Number of Active Franchises:  203
• Average Gross Sales:  $282,507
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  57 / 28.1%
• Median Gross Sales:  $243,236
• Lowest Gross Sales:  $1,230
• Highest Gross Sales:  $1,529,252

All

• Number of Franchise Ownership Groups:  273
• Average Gross Sales:  $966,936
• Number and Percentage of Franchise Ownership Groups at or Above Average Gross Sales:  92 / 33.7%
• Median Gross Sales:  $687,051
• Lowest Gross Sales:  $1,578
• Highest Gross Sales:  $5,890,121

• Number of Active Franchises:  849
• Average Gross Sales:  $310,923
• Number and Percentage of Active Franchises at or Above Average Gross Sales:  324 / 38.2%
• Median Gross Sales:  $244,801
• Lowest Gross Sales:  $1,230
• Highest Gross Sales:  $1,542,651

• As of December 31, 2022 (the end of the Covered Period), there were 958 Franchised Businesses. Of those 958 Franchised Businesses, 849 (88.6%) were Active Franchises throughout the Covered Period and are represented in these tables.

• These tables do not include (i) 91 Franchised Businesses that did not operate through all 12 months of the Covered Period (including 4 that opened during the Covered Period) and (ii) 18 Franchised Businesses that were transferred to a new owner in the Covered Period.

• These tables also do not include 42 Franchised Businesses that ceased operating in the Covered Period (none of which had opened within the 12 months prior to the date such Franchised Business closed).

• This table reflects the financial performance of both Qualified Franchises and Remote Office Franchises.

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

• “Gross Sales” means all billings of the Franchised Business, whether or not collected, including but not limited to cash sales and sales on account, monies billed for maid cleaning services whether performed by you or subcontracted, monies billed in connection with trade or barter agreements, or monies billed for any other cleaning and/or maintenance of any structure, interior or exterior.

• Merry Maids calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees. In order to properly allocate revenue to each Franchised Business, Merry Maids identified each sale by zip code and assigned the revenue to the appropriate Franchised Business.

• Some Franchised Businesses earned revenue through sales made outside of their Territories in Territories that have not yet been licensed or in Territories licensed to other franchisees. Merry Maids has not included in the data any Gross Sales earned from zip codes outside of the Territories licensed to each Franchised Business, because most Franchised Businesses are not authorized to accept orders from customers outside of their defined Territories.

• These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit. Merry Maids has not audited or independently verified the financial reports submitted by its franchisees nor has it asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although Merry Maids has no information or other reason to believe that they are unreliable.

• No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.

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