The Maids: $1.11M Average Sales vs. $80.8K-$158K Franchise Cost

In this exclusive Franchise Chatter 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 2024 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 2024 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on The Maids franchise opportunity

Section V – Presentation and analysis of The Maids’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• fiscal year 2023 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 99 The Maids franchisees representing 1,352 territories that were in operation for the 12-month period from October 1, 2022 until September 30, 2023

• fiscal year 2023 high, low, average, and median revenue for the 99 The Maids franchisees representing 1,346 territories that were in operation for the 12-month period from October 1, 2022 until September 30, 2023

• fiscal year 2023 total revenue, direct cleaning expense, indirect cleaning expense, cleaning margin, customer acquisition expense, business management expense, and net income for the 10 The Maids company stores representing 142 territories that were in operation for the full 12-month period from October 1, 2022 until September 30, 2023

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 2024 FDD:

• Initial Territory Fee:  $30,000 to $84,000
• SMART Start Package:  $18,900
• 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:  $1,200 to $4,850
• Additional Funds for 3 Months:  $24,880 to $34,500
• Total Estimated The Maids Franchise Costs:  $80,880 to $158,900

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 2024 FDD:

• Initial Territory Fee:  $0.50 per household
• SMART Start Package:  $18,900
• Continuing License Fees:  3.9% to 6.9% 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

2021

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

2022

• Outlets at the Start of the Year:  1,423
• Outlets at the End of the Year:  1,454
• Net Change:  +31

2023

• Outlets at the Start of the Year:  1,454
• Outlets at the End of the Year:  1,493
• Net Change:  +39

Company-Owned

2021

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

2022

• Outlets at the Start of the Year:  160
• Outlets at the End of the Year:  152
• Net Change:  -8

2023

• Outlets at the Start of the Year:  152
• Outlets at the End of the Year:  142
• Net Change:  -10

Section IV – News Updates on The Maids Franchise

• The Maids Secures Coveted #1 Ranking on Newsweek’s “America’s Best Customer Service 2024” List

• The Maids Ranked No. 30 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Maids Franchise (Item 19, 2024 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, 2022 through September 30, 2023.

• 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, 2023, there were a total of 1,635 franchised and company-owned territories. A total of 123 Franchisees licensed and operated 1,493 of the 1,635 territories. The Maids operated the remaining 142 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 5,460 total weekly reports required from Franchisees, 1.34% or 73 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, 2022 until September 30, 2023.

• As of September 30, 2023, there were a total of 123 Franchisees licensed in 1,493 territories. The Maids included information from 99 Franchisees licensed in 1,352 territories that were in operation for the entire 12-month period ended September 30, 2023 and that submitted complete reports to The Maids (“Reporting Franchisees”).

• The Maids did not include information for 18 Franchisees in 104 territories that were not in operation for the entire 12-month period ending September 30, 2023 (including 12 Franchisees in 70 territories that opened in 2023 and 6 Franchisees in 27 territories that completed training prior to September 30, 2023 and opened after September 30, 2023).

• The Maids also did not include information for 6 Franchisees operating in 37 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:  $223.16
• Total Number of Franchisees/Territories Included:  99 Franchisees/1,352 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  39 Franchisees/618 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  39.4% of Franchisees/45.9% of Territories
• Median Revenue Per Clean:  $213.46

• Average Annual Revenue Per Recurring Customer:  $4,907.98
• Total Number of Franchisees/Territories Included:  99 Franchisees/1,352 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  47 Franchisees/640 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  47.5% of Franchisees/47.5% of Territories
• Median Annual Revenue Per Recurring Customer:  $4,783.66

• Average Percentage of Cleans by Type of Service:  88.2%
• Total Number of Franchisees/Territories Included:  99 Franchisees/1,352 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  53 Franchisees/836 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  53.5% of Franchisees/62.1% of Territories
• Median Percentage of Cleans by Type of Service:  88.6%

Special Project

• Average Revenue Per Clean:  $359.47
• Total Number of Franchisees/Territories Included:  98 Franchisees/1,349 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  31 Franchisees/570 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  31.6% of Franchisees/42.4% of Territories
• Median Revenue Per Clean:  $325.94

• Average Annual Revenue Per Recurring Customer:  $359.47
• Total Number of Franchisees/Territories Included:  98 Franchisees/1,349 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  31 Franchisees/570 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  31.6% of Franchisees/42.4% of Territories
• Median Annual Revenue Per Recurring Customer:  $325.94

• Average Percentage of Cleans by Type of Service:  11.8%
• Total Number of Franchisees/Territories Included:  98 Franchisees/1,349 Territories
• Number of Franchisees/Territories Who Met or Exceeded the Average:  46 Franchisees/510 Territories
• Percentage of Franchisees/Territories Who Met or Exceeded the Average:  46.9% of Franchisees/38.0% of Territories
• Median Percentage of Cleans by Type of Service:  11.5%

• “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, 2022 until September 30, 2023.

Entire The Maids System

• Number of Franchisees/Territories:  99 Franchisees/1,346 Territories
• High Revenue:  $7,181,415
• Low Revenue:  $30,986
• Average Revenue:  $1,119,411
• Percentage of Franchisees That Met or Exceeded the Average:  32.3% of Franchisees/55.2% of Territories
• Number of Franchisees That Met or Exceeded the Average:  32 Franchisees/743 Territories
• Median Revenue:  $766,665
• Average Number of Regular Maid Service Customers:  201.22

• For the 12-month period from October 1, 2022, until September 30, 2023, the average revenue per territory for the 1,346 territories was $78,430.05.

• “Average Number of Regular Maid Service Customers” is calculated by taking the average revenue times 88.2% (the average percentage of cleans by regular maid service as shown in Part 1), and then dividing it by $4,907.98 (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 unaudited information reported by Company Stores in 142 territories in 9 states that were in operation for the full 12-month period from October 1, 2022 until September 30, 2023.

• 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 142 Territories)

Total Revenue:  $1,195,641 (100.0%)

Cleaning Expense

• Customer Service – Cleaning/Drive Time:  $462,964 (38.7%)
• Customer Service – Other:  $24,189 (2.0%)
• Payroll Taxes:  $46,684 (3.9%)
• Workers Compensation Insurance:  $17,969 (1.5%)
• Employee Benefits:  $38,159 (3.2%)
• Contract Services/Other:  $0 (0.0%)
• Direct Cleaning Expense:  $589,965 (49.3%)

Indirect Cleaning Expense

• Supplies, Equipment, and Uniforms:  $18,442 (1.5%)
• Vehicle – Gas/Maintenance/Insurance:  $49,854 (4.2%)
• Customer Damage:  $1,697 (0.1%)
• Employee Appreciation:  $5,490 (0.5%)
• Payment Processing Fees:  $27,351 (2.3%)
• Continuing License Fee:  $62,827 (5.3%)
• National Advertising and Tech Innovation Fees:  $26,683 (2.2%)
• Indirect Cleaning Expense:  $192,344 (16.1%)

Cleaning Expense:  $782,309 (65.4%)

Cleaning Margin:  $413,332 (34.6%)

Customer Acquisition Expense

• Lead Generation:  $41,162 (3.4%)
• National Sales Center:  $11,467 (1.0%)
• Customer Appreciation:  $3,617 (0.3%)
• Customer Acquisition Expense:  $56,245 (4.7%)

Business Management Expense

• General Management:  $61,897 (5.2%)
• Field Management:  $0 (0.0%)
• Payroll Taxes/Workers Comp – Management:  $4,550 (0.4%)
• Employee Benefits – Management:  $6,577 (0.6%)
• Insurance:  $16,631 (1.4%)
• Recruiting and Hiring:  $7,379 (0.6%)
• Rent/Utilities/Maintenance:  $56,253 (4.7%)
• Vehicles – Lease/Depreciation:  $14,119 (1.2%)
• (Gain)/Loss on Vehicles:  $(14,535) (-1.2%)
• Office Technology/Communications:  $7,709 (0.6%)
• Outside Services – Professional:  $1,141 (0.1%)
• Office Supplies and Equipment:  $4,354 (0.4%)
• Travel/Meals/Development:  $874 (0.1%)
• Depreciation/Amortization:  $2,455 (0.2%)
• Interest Expense:  $0 (0.0%)
• Taxes – Miscellaneous:  $1,357 (0.1%)
• Other:  $3,565 (0.3%)
• Business Management Expense:  $174,324 (14.6%)

Net Income:  $182,763 (15.3%)

• The highest annual revenue for Company Stores is $2,676,429 and the lowest annual revenue for Company Stores is $591,053.

• 2 of the 10 (20%) 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) ⬇️