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

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

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

Section III – Number of franchised and company-owned Molly Maid 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 Molly Maid franchise opportunity

Section V – Presentation and analysis of Molly Maid’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, median, highest, and lowest gross sales per cleaning for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all 193 Molly Maid operators (operating a total of 426 businesses), which were all in operation and reporting sales during the entire Reporting Period (January 1, 2023 to December 31, 2023)

• 2023 average, median, highest, and lowest gross sales per target household for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all 193 Molly Maid operators (operating a total of 426 businesses), which were all in operation and reporting sales during the entire Reporting Period (January 1, 2023 to December 31, 2023)

• percentage of cleans performed in 2023 for recurring customers versus percentage of cleans performed in 2023 for occasional customers for all 193 Molly Maid operators (operating a total of 426 businesses), which were all in operation and reporting sales during the entire Reporting Period (January 1, 2023 to December 31, 2023)

• percentage increase in annual gross sales from 2022 to 2023 for the 178 Molly Maid operators (operating a total of 394 businesses) that were in business and reporting sales for the entire 12 months in both 2022 and 2023

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

Section I – Molly Maid Franchise Costs

• Initial Franchise Fee:  $14,900
• Territory Fee:  $45,000 to $70,000
• Initial Startup Package:  $7,000 to $8,000
• Software Enrollment and Training Fee:  $1,500
• Auto Lease Deposit and Lease Expense:  $3,900 to $5,500
• Computer Hardware:  $2,200 to $4,500
• Leasehold Improvements:  $1,000 to $5,000
• Real Estate, Utility Deposits, and 3 Months’ Rent:  $4,000 to $7,000
• Furniture, Fixtures, and Equipment:  $2,500 to $3,500
• Permits and Licenses:  $100 to $1,000
• Insurance Deposit and 3 Months’ Insurance Expense:  $2,200 to $5,300
• Training Expenses for Travel, Food, and Lodging:  $4,000 to $5,000
• Professional Fees:  $0 to $5,000
• Additional Funds for 3 Months:  $50,000 to $60,000
• Total Estimated Molly Maid Franchise Costs:  $138,300 to $196,200

Section II – Molly Maid’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Fees:  Initial Franchise Fee of $14,900; Territory Fee of $1 per Target Household in your Territory

• License Fee:  3 to 6 ½% of Gross Sales, except for “roll-in” sales. In addition, minimum license fees apply.

• Marketing, Advertising, and Promotion (MAP) Contribution:  the then-current fee (currently, 2% of Gross Sales per week per Molly Maid Franchise Agreement that you have entered into with Molly Maid)

• Local Marketing Requirement:  $1 per Target Household per year, which declines as Gross Sales increase, to a minimum of $0.15 per Target Household if criteria are met

• Local Marketing Groups:  not to exceed 3% of Gross Sales

Section III – Number of Franchised and Company-Owned Molly Maid Outlets

Franchised

2021

• Outlets at the Start of the Year:  497
• Outlets at the End of the Year:  501
• Net Change:  +4

2022

• Outlets at the Start of the Year:  501
• Outlets at the End of the Year:  481
• Net Change:  -20

2023

• Outlets at the Start of the Year:  481
• Outlets at the End of the Year:  464
• Net Change:  -17

Company-Owned

2021

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

2022

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

2023

• 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 Molly Maid Franchise

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

• The following tables are a historic financial performance representation about a subset of the franchise system’s existing outlets’ past performance during the calendar year beginning on January 1, 2023 and ending on December 31, 2023 (the “Reporting Period”) and are not a forecast of your future financial performance.

• Franchise owners are not required to use generally accepted accounting principles when reporting these figures.

• As of December 31, 2023, there were 464 open Molly Maid franchises in the United States. These franchises were owned and operated by 209 franchise owners (collectively, “Operators”).

• The tables in this Item 19 include data from 193 Operators (“Reporting Franchisees”) representing 426 franchised businesses, which were all in operation and reporting sales during the entire Reporting Period.

• The tables in this Item 19 exclude data from (a) 7 businesses that opened during the Reporting Period and another 4 businesses that opened in December 2022 but did not start reporting Gross Sales until February 2023 and therefore were not reporting data for the entire Reporting Period; (b) 20 businesses that resulted from resales of 15 businesses (two such resales involved a territory split, resulting in 5 businesses following the resale) during the Reporting Period and so were not operating and reporting data for the entire Reporting Period; (c) 1 business that did not report reliable data for the Reporting Period; and (d) 6 businesses that expanded their territory sizes during the Reporting Period and so did not have the same Target Household number in their territory for the entire Reporting Period.

• Twenty-four businesses closed during the Reporting Period and therefore did not report data for the entire Reporting Period and so they are also excluded from this Item 19. Of the 24 businesses that closed during the Reporting Period, no business closed after being open for less than 12 months.

• For purposes of the representations below, “Gross Sales” means 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 Molly Maid franchised 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 Molly Maid authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).

Part 1 – 2023 Average and Median Gross Sales Per Cleaning

• The table below in this Part 1 shows the average and median Gross Sales per service (i.e., cleaning) data for the 2023 Reporting Period for all Reporting Franchisees. The Reporting Franchisees are divided into groups based on the level of Reporting Franchisee’s Average Gross Sales Per Cleaning achieved during the Reporting Period (i.e., top 10%, 1st, 2nd, 3rd, and 4th quartile, bottom 10%, and all (100%)).

Top 10%

• Average Gross Sales Per Cleaning:  $230
• Highest Gross Sales Per Cleaning:  $256
• Lowest Gross Sales Per Cleaning:  $220
• Median Gross Sales Per Cleaning:  $228
• Number of Reporting Franchisees in Group:  19
• Number and Percent in Group That Attained the Average or Greater:  08 / 42%

1st Quartile

• Average Gross Sales Per Cleaning:  $216
• Highest Gross Sales Per Cleaning:  $256
• Lowest Gross Sales Per Cleaning:  $194
• Median Gross Sales Per Cleaning:  $215
• Number of Reporting Franchisees in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  24 / 50%

2nd Quartile

• Average Gross Sales Per Cleaning:  $178
• Highest Gross Sales Per Cleaning:  $192
• Lowest Gross Sales Per Cleaning:  $171
• Median Gross Sales Per Cleaning:  $178
• Number of Reporting Franchisees in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  23 / 48%

3rd Quartile

• Average Gross Sales Per Cleaning:  $163
• Highest Gross Sales Per Cleaning:  $171
• Lowest Gross Sales Per Cleaning:  $155
• Median Gross Sales Per Cleaning:  $163
• Number of Reporting Franchisees in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  26 / 54%

4th Quartile

• Average Gross Sales Per Cleaning:  $146
• Highest Gross Sales Per Cleaning:  $155
• Lowest Gross Sales Per Cleaning:  $93
• Median Gross Sales Per Cleaning:  $149
• Number of Reporting Franchisees in Group:  49
• Number and Percent in Group That Attained the Average or Greater:  32 / 65%

Bottom 10%

• Average Gross Sales Per Cleaning:  $133
• Highest Gross Sales Per Cleaning:  $147
• Lowest Gross Sales Per Cleaning:  $93
• Median Gross Sales Per Cleaning:  $139
• Number of Reporting Franchisees in Group:  19
• Number and Percent in Group That Attained the Average or Greater:  14 / 74%

100%

• Average Gross Sales Per Cleaning:  $175
• Highest Gross Sales Per Cleaning:  $256
• Lowest Gross Sales Per Cleaning:  $93
• Median Gross Sales Per Cleaning:  $171
• Number of Reporting Franchisees in Group:  193
• Number and Percent in Group That Attained the Average or Greater:  81 / 42%

• Molly Maid calculated the average and median Gross Sales Per Cleaning as follows: (i) first, Molly Maid calculated the average Gross Sales Per Cleaning during the Reporting Period for each Reporting Franchisee, based on information provided by the Reporting Franchisees to Molly Maid through its Software System (the “Individual Business Average Gross Sales Per Cleaning”) and then (ii) Molly Maid calculated the average and median of all Reporting Franchisees’ Individual Business Average Gross Sales Per Cleaning during the Reporting Period.

Part 2 – 2023 Average and Median Gross Sales Per Target Household

• The table below in this Part 2 shows the average and median Gross Sales per Target Household (TH) data for the Reporting Period for all Reporting Franchisees.

• The Reporting Franchisees are divided into groups based on the level of Reporting Franchisee’s Average Gross Sales Per Target Household (TH) achieved during the Reporting Period (i.e., top 10%, 1st, 2nd, 3rd, and 4th quartile, bottom 10%, and all (100%)).

• “Target Household” or “TH” for each Operator refers to the total number of Target Households specified in each of the Operator’s Franchise Agreements, or if any of the Operator’s Franchise Agreements do not identify the Target Households, then the total number of Target Households that Molly Maid calculates (using third-party mapping software) based on the Operator’s territory size under each of the Operator’s Franchise Agreements.

Top 10%

• Average Gross Sales Per TH:  $48.86
• Highest Gross Sales Per TH:  $97.69
• Lowest Gross Sales Per TH:  $35.86
• Median Gross Sales Per TH:  $50.66
• Number of Operators in Group:  19
• Number and Percent in Group That Attained the Average or Greater:  10 / 53%

1st Quartile

• Average Gross Sales Per TH:  $36.99
• Highest Gross Sales Per TH:  $97.69
• Lowest Gross Sales Per TH:  $25.64
• Median Gross Sales Per TH:  $34.73
• Number of Operators in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  16 / 33%

2nd Quartile

• Average Gross Sales Per TH:  $20.44
• Highest Gross Sales Per TH:  $25.46
• Lowest Gross Sales Per TH:  $17.27
• Median Gross Sales Per TH:  $19.50
• Number of Operators in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  19 / 40%

3rd Quartile

• Average Gross Sales Per TH:  $14.34
• Highest Gross Sales Per TH:  $17.24
• Lowest Gross Sales Per TH:  $11.99
• Median Gross Sales Per TH:  $14.61
• Number of Operators in Group:  48
• Number and Percent in Group That Attained the Average or Greater:  25 / 52%

4th Quartile

• Average Gross Sales Per TH:  $8.65
• Highest Gross Sales Per TH:  $11.95
• Lowest Gross Sales Per TH:  $2.70
• Median Gross Sales Per TH:  $8.67
• Number of Operators in Group:  49
• Number and Percent in Group That Attained the Average or Greater:  26 / 53%

Bottom 10%

• Average Gross Sales Per TH:  $6.40
• Highest Gross Sales Per TH:  $8.09
• Lowest Gross Sales Per TH:  $2.70
• Median Gross Sales Per TH:  $6.27
• Number of Operators in Group:  19
• Number and Percent in Group That Attained the Average or Greater:  9 / 47%

100%

• Average Gross Sales Per TH:  $17.63
• Highest Gross Sales Per TH:  $97.69
• Lowest Gross Sales Per TH:  $2.70
• Median Gross Sales Per TH:  $17.24
• Number of Operators in Group:  193
• Number and Percent in Group That Attained the Average or Greater:  91 / 47%

• Molly Maid calculated the average and median Gross Sales Per Target Household as follows: (i) first, Molly Maid calculated the average Gross Sales Per Target Household during the Reporting Period for each Reporting Franchisee, based on information provided by the Reporting Franchisees to Molly Maid through its Software System (the “Individual Franchisee Average Gross Sales Per Target Household”) and (ii) then Molly Maid calculated the average and median of all Reporting Franchisees’ Individual Franchisee Average Gross Sales Per Target Household during the Reporting Period.

Part 3 – 2023 Recurring and Occasional Customers

• The table below in this Part 3 shows the percentage of services (i.e., cleanings) provided by Reporting Franchisees during the Reporting Period that were performed for recurring customers versus the percentage of services/cleanings performed for occasional customers.

• Recurring customers are customers for whom a franchisee provided at least two cleanings during the Reporting Period.

Recurring Customers

• Average Percentage of Cleanings Performed for This Type of Customer:  91%
• Median Percentage of Cleanings Performed for This Type of Customer:  92%
• Number of Reporting Franchisees:  193
• Number and Percent of Reporting Franchisees at or Above the Average:  102 / 53%

Occasional Customers

• Average Percentage of Cleanings Performed for This Type of Customer:  9%
• Median Percentage of Cleanings Performed for This Type of Customer:  8%
• Number of Reporting Franchisees:  193
• Number and Percent of Reporting Franchisees at or Above the Average:  91 / 47%

Part 4 – 2023 Same Business Sales Performance

• The table below in this Part 4 shows the percentage increase from year 2022 to year 2023 in annual Gross Sales of Reporting Franchisees that were in business and reporting sales for the entire 12 months in both year 2023 and year 2022, which represents 178 of the Reporting Franchisees, which operated the same 394 franchised businesses in both year 2022 and year 2023.

• Fifteen Reporting Franchisees were excluded because they were not in business for a full year in 2022.

Gross Sales Growth 2022 vs. 2023

• More Than 20%:  18 Reporting Franchisees (12% of Reporting Franchisees)
• More Than 10% and up to 20%:  41 Reporting Franchisees (23% of Reporting Franchisees)
• More Than 5% and up to 10%:  49 Reporting Franchisees (27% of Reporting Franchisees)
• More Than 0% and up to 5%:  31 Reporting Franchisees (16% of Reporting Franchisees)

Gross Sales Decline 2022 vs. 2023

• More Than 0% and up to 5%:  19 Reporting Franchisees (10% of Reporting Franchisees)
• More Than 5% and up to 10%:  13 Reporting Franchisees (7 % of Reporting Franchisees)
• More Than 10% and up to 20%: 7 Reporting Franchisees (4% of Reporting Franchisees)
• More Than 20%:  0 Reporting Franchisees (0% of Reporting Franchisees)

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

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