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

Section I – Estimated initial investment (franchise costs) for a Mosquito Joe franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Mosquito Joe franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Mosquito Joe 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 Mosquito Joe franchise opportunity

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

• 2023 average customer retention and percentage of customers that are recurring customers for the 415 franchised Mosquito Joe businesses, which were all in operation and reporting sales as of December 31, 2023
  

• 2023 average, median, high, and low gross sales per treatment for the 415 franchised Mosquito Joe businesses, which were all in operation and reporting sales as of December 31, 2023

• 2023 average, median, high, and low gross sales, number of customers, and number of jobs for the 387 franchised Mosquito Joe businesses that had been operating for at least 12 months as of December 31, 2023

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

Section I – Mosquito Joe Franchise Costs

• Initial Franchise Fee:  $42,500
• Direct Marketing Program/Set Up Fee and Annual Program Fee:  $38,000
• Direct Marketing Program/Annual Mailing List Fee:  $1,250 to $1,750
• SEO Program Fee (3 months):  $300 to $900
• Real Property:  $0 to $6,000
• Office Furnishings, Signage, and Fixtures:  $0 to $2,000
• Tools, Equipment, Products, Uniforms, and Supplies:  $5,500 to $6,500
• Vehicle, Shelving, and Decals:  $3,000 to $10,000
• Initial Training:  $100 to $2,000
• Insurances, Office and Marketing Supplies, and Forms:  $5,500 to $6,500
• Professional Fees:  $0 to $1,000
• Licenses:  $100 to $3,200
• Computer, Internet, Devices, Phones, Software Setup:  $2,600 to $5,100
• Deposits:  $0 to $4,000
• Additional Funds for 3 Months:  $16,780 to $28,050
• Total Estimated Mosquito Joe Franchise Costs:  $115,630 to $157,500

Section II – Mosquito Joe’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $42,500

• License Fee:  10% of Gross Sales for Gross Sales of up to $500,000 (in a calendar year, per Territory); 7% of Gross Sales for Gross Sales above $500,000 (in the same calendar year, in the one Territory). In addition, minimum license fees apply.

• Marketing and Promotion (MAP) Fee:  2% of Gross Sales

• Local Marketing Groups:  2% of Gross Sales. As of the issuance date of the current Franchise Disclosure Document, Mosquito Joe may require that all or a portion of your LMG contribution (currently, 2% of your Gross Sales) be paid for use towards the Neighborly marketing and brand awareness initiatives.

Section III – Number of Franchised and Company-Owned Mosquito Joe Outlets

Franchised

2021

• Outlets at the Start of the Year:  345
• Outlets at the End of the Year:  372
• Net Change:  +27

2022

• Outlets at the Start of the Year:  372
• Outlets at the End of the Year:  394
• Net Change:  +22

2023

• Outlets at the Start of the Year:  394
• Outlets at the End of the Year:  416
• Net Change:  +22

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section IV – News Updates on the Mosquito Joe Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Mosquito Joe Franchise (Item 19, 2024 FDD)

• This Item 19 excludes data from the two company-owned Businesses.

• Six franchised Businesses closed during the 2023 fiscal year, and so they did not report data to Mosquito Joe for the entire 12-month period in 2023 (the “Reporting Period”) and therefore their data is also excluded from this Item 19. No franchised business closed after being open for less than 12 months.

• As used herein, “Gross Sales” means and includes the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a Mosquito Joe business whether under any of the Marks or otherwise.

• Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that Mosquito Joe authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).

Part 1 – 2023 Customer Retention Metrics and Gross Sales Per Treatment Data

• As of December 31, 2023, there were 179 franchisees operating a total of 416 franchised Businesses in the United States and there were two corporate-owned Businesses in the United States.

• Part 1 of this Item 19 includes data from 415 franchised Businesses, which were all in operation and reporting sales as of December 31, 2023. One franchised Business was excluded from this Part 1 of Item 19 as it did not report data to Mosquito Joe correctly.

2023 Customer Retention Metrics of Franchised Businesses (source: business management software)

• What percent of the previous year’s customers do your franchised Businesses retain each year? 75%. Many of these customers were partial season customers in 2022 that turned into full season customers in 2023.

• What percent of the customers of the franchised Businesses are recurring customers? 89%.

• A “retained customer” is a prior-year’s recurring customer, who returns the following year.

• A “recurring customer” is one that receives three or more services in a single calendar year/season.

2023 Gross Sales Per Treatment for Franchised Businesses (source: business management software)

• What amount of Gross Sales per Treatment did your franchised Businesses generate? The average gross sales per treatment in 2023 for all franchised Businesses was $87.39 and the median was $85.48. The highest gross sales per treatment was $177.28 and the lowest gross sales per treatment was $62.17.

• 170 franchised Businesses, or 40.96% of the franchised Businesses, had average gross sales per treatment equal or in excess of the average.

• Gross Sales Per Treatment is the gross effective invoice price.

Part 2 – Annual Gross Sales, Annual Number of Customers, and Annual Number of Jobs for Franchised Businesses in 2023

• Of the 416 franchised Businesses, 387 Businesses (the “Reporting Businesses”) had been operating for at least 12 months as of December 31, 2023. This Part 2 of Item 19 excludes data for (a) 28 franchised Businesses that opened during the year 2023 and therefore did not have data for the entire Reporting Period and (b) one franchised Business that did not report data for the entire Reporting Period.

• The following tables show average and median annual Gross Sales, annual number of customers, and annual number of jobs for the Reporting Businesses for the Reporting Period.

2023 Annual Gross Sales Data

• Number of Businesses:  387
• High Annual Gross Sales:  $1,846,901
• Low Annual Gross Sales:  $13,635
• Average Annual Gross Sales:  $364,223
• Number/Percent at or Above Average:  140 / 36%
• Median Annual Gross Sales:  $273,430

2023 Annual Number of Customers Data

• Number of Businesses:  387
• High Annual Number of Customers:  2,263
• Low Annual Number of Customers:  13
• Average Annual Number of Customers:  519
• Number/Percent at or Above Average:  148 / 38%
• Median Annual Number of Customers:  395

2022 Annual Number of Jobs Data

• Number of Businesses:  387
• High Annual Number of Jobs:  21,826
• Low Annual Number of Jobs:  140
• Average Annual Number of Jobs:  4,293
• Number/Percent at or Above Average:  148 / 38%
• Median Annual Number of Jobs:  3,273

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

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