Franchise Project - Molly Maid

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309 Lexington Street Auburndale, MA 02466 Phone: 617-516-9092 E-Mail: banis.g@neu.edu Web: http://georgebanis.me Professor: Cheryl Mitteness Class: ENTR 2201


FRANCHISEPROJECT

George Banis

page 2

Fall 2010

FRANCHISE PROJECT

PREFACE

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STRENGTH OF THE FRANCHISING PACKAGE

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STRENGTH OF THE PRODUCTS & SERVICES FRANCHISOR’S BACKGROUND INITIAL AND ONGOING COSTS CONTROLS SUPPORT OFFERED RENEWAL, TERMINATION, TRANSFER INFORMATION FINANCIAL STRENGTH OF FRANCHISOR EARNING POTENTIAL REPORTED SUMMARY THOUGHTS REGARDING THE STRENGTH OF THE FRANCHISE

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FRANCHISE FIT WITH LOCATION

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IDEAS FOR LOCATION CHARACTERISTICS OF TYPICAL CUSTOMERS LOCATION ANALYSIS FOR FIT WITH TARGET CUSTOMER SUMMARY THOUGHTS REGARDING THE STRENGTH OF THE LOCATION

8 9 9 9

FRANCHISE FIT WITH ME

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FIT WITH FRANCHISING IN GENERAL FIT WITH MOLLY MAID SUMMARY THOUGHTS

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EXHIBITS

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A. COSTS B. REASONS FOR TERMINATION BY THE FRANCHISOR C. FRANCHISE STATUS SUMMARY D. SIMPLYMAP DATA

12 13 14 15

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Copyright © 2010 George Banis


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PREFACE Dear Reader, Thank you for choosing this franchising guide. This project was prepared for Northeastern University’s class The Entrepreneurial Universe. This essay was a result of thorough analysis of the Molly Maid franchise. It contains facts found online and on the franchise’s FDD. It also includes my current opinions and thoughts regarding this franchise. The way I chose this franchise for my project was the following. In the beginning I conducted research on various franchises that I believed have investing interest and growth potential. During this process I found rather interesting the options of Molly Maid, Hobby Town, Chester’s, and Kiddie Academy. The next step was to review their product keeping into consideration the product itself, the current economy, the correlation with the general Boston area, and of course my “gut feeling”. The results of this preliminary research and my passion for cleanness and order in the place I live and work contributed to my decision to pick Molly Maid as the franchise for my project for the reasons that I will be explain thoroughly throughout this essay.

Best Regards,

George Banis

www.gbanis.com

Business Major, Northeastern University Concentration: Entrepreneurship

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George Banis

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STRENGTH OF THE FRANCHISING PACKAGE STRENGTH OF THE PRODUCTS & SERVICES Molly Maid “is devoted to effectively meeting the residential cleaning needs of consumers and, in so doing, enhances their quality of life.”1 The maid profession is not new. It has its roots from the Medieval era when maids were workers who assisted in the daily chores of the house.2 Over the years this profession has evolved taking the form we know today, with many variations. The most prevalent form is the person who visits on a regular –most often weekly-­‐ basis and cleans the residential location. The demand for this service is international and is all year long. Another thing to note is that the service able to repeat business, as houses tend to need cleaning on a regular basis. Two forms of maid services are dominant in the western world: individual maids or organized companies. Even though between 1986 and 1996 professional cleaning services have only gained 2% share (from 6% to 8%) the Bureau of Labor Statistics projects an 18% increase in the number of cleaners, maids, and janitors employed by businesses, to 3.6 million in 2005.3 At the same time, the increase of baby boomers and the upward slope of theft and criminal incidents can be proof of an increase in the demand for professional maid services. Among the businesses that offer such services in the greater Boston area, there are a few that stand out. Maids Express4 is one of the companies that are in direct competition with Molly Maid. The Maids5 is another professional cleaning company, established in 1995, and offering its services in the Greater Boston and North Shore area. LTC Cleaning6 and Merry Maids7 are two more cleaning companies focused in the Greater Boston area and appear have the most experience, since they both count over 30 years of experience in this field.

FRANCHISOR’S BACKGROUND Molly Maid is a well established franchisor with 308 franchises in United States territory and an additional 324 internationally as of December 31, 2004.8 Initially, it was formed in 1984 as a Michigan corporation having as a sole purpose franchising the “MOLLY MAID system”9. One thing to note is that the company does not have any previous experience in residential cleaning which might have been an considerable drawback as it was trying to establish franchise deals during the early stages. Even thought it seems as a company that is well established and branches all over the world, I have not heard of it, possibly because I lived in Greece for the past twenty four years, a country where Molly Maid is not selling franchises currently. Another reason would be because being of young age, and living in mostly small apartments I never found the need of hiring a third party to clean my house. 1 2 3 4 5 6 7 8 9

FDD, page 8 http://goo.gl/getAW http://goo.gl/sCc2p http://www.maids-express.com/ http://www.themaidsma.com/ http://ltccleaning.com/ http://www.merrymaids.com/ FDD, page 8 FDD, page 7 www.gbanis.com

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George Banis

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Moving on, it is worth to mention that Molly Maid is registered with International Franchise Association1. Another proof of good reputation is the fact that it is ranked number eighty one among the top franchises by Entrepreneur Magazine.2 Furthermore, according to the FDD and my online research the company has no bankruptcy history, and only litigation disclosed “is arising from Plaintiff’s inability to obtain financing to complete her purchase of a Molly Maid Franchise.”3

INITIAL AND ONGOING COSTS After looking for fees both online and on the FDD, it seems that the numbers on the FDD are outdated. For this reason, I decided to use the facts mentioned by Franchise Direct4 claim to be taken by the company’s 2009 FDD and seem legitimate. The two major costs for acquiring this franchise are the initial franchising fee at $14,900, the territory fee at $1 per household in the franchise’s territory (ranging between $20,000 and $40,000), and the initial package fee at $8,500. These fees seem to be ranging in a reasonable field, keeping in mind that the franchise has an established name and has proven its quality by the amount of open franchise locations. The franchisor also requires incremental royalty fees which range between 6.5%-­‐3% payable weekly. In the case of a territory expansion, the royalty fee for the new territory is flat at %6.5 Additionally, keep in mind the cost of a vehicle which varies between $9,500 -­‐ $15,000. For a table with all costs and royalty fees please consult the exhibit at the end of the report. The franchisor does not offer franchising options, but according to the magazine Entrepreneur, financing is available by third parties for franchising fees, startup costs, and equipment.6 One thing to keep into consideration is labor costs, which are not mentioned in the FDD. According to my research7 I could not find specifically how much other Molly Maid franchises in Massachusetts pay their employees but an estimate would be around $9-­‐$12 per hour for maids and $46,000-­‐$50,000 for managers.8 Molly Maid also requires franchisees to participate in local and national marketing programs with amounts that decline as gross sales rise. More information can be found at the exhibit at the end of the report.

CONTROLS The franchisor has established many methods to control and maintain the high standards and proper functioning of the franchise. First, as a franchisee we are subject to on-­‐site inspection and/or audit of the principal office with 48 hours prior notice. The franchisor also holds the right to participate in quality checks at customer homes recently9 cleaned. Furthermore, the franchisor gives the right to the franchisee to maintain a website customized for the specific franchise upon agreement. Such an example can be the website of the franchise in Buckhead, GA which mentions the Consumer’s Choice Award of Business Excellence10. 1

http://goo.gl/6FjA4 http://goo.gl/istEu 3 FDD, page 12 4 http://goo.gl/ihcoA 5 FDD, page 9 6 http://goo.gl/istEu 7 I looked at various websites including but not limited to: http://www.payscale.com/ http://jobs.businessweek.com/ http://www.indeed.com/ 8 http://goo.gl/fDeBE 9 It does not give a quantity to the amount of “recently” 10 http://www.mollymaid.com/local-house-cleaning/ga/buckhead.aspx 2

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George Banis

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Additional controls that the franchisor requires involve the image and marketing brand of the franchise. The most significant is a vehicle with the franchise logo that we are required to buy or lease. Another thing to keep in mind is the standard employee attire which according to the statements in the FDD “helps we gain consumer confidence in our community.”1 The initial package for opening a franchise –which includes and is not limited ot uniforms, cleaning tools, computer hardware and software-­‐ must be bought from the franchisor. One thing to keep in mind is that according to past statements, the franchisor has not derived any revenue from product sales although they have the right to do so.2 For future inventory reorders, Molly Maid has established discounted pricing, but to my understanding the franchisee is not required to buy from the proposed sources. In regards to restrictions on the sales area, Molly Maid has a clear position. The territory is specifically assigned to the franchisor and have promised not to operate themselves or award to any other party a franchise to operate in the same area. Noteworthy is the fact that upon achieving target sales we are eligible to modify and expand our territory.

SUPPORT OFFERED Molly Maid offers what seems to be a complete training program for franchisees. It begins with a 5-­‐day hands-­‐on training at their home office in Ann Arbor, MI followed by a 4-­‐day program at a regional training center. These sessions are obligatory and failing to complete them successfully will result in termination of the agreement. We also have the option to request training for additional individuals at our own expense and based upon spot availability. Also, the franchisor requires refresher training sessions not more than once every two years at our own expense. They also offer a complete set of general guidance on new products and services, purchase of supplies, formulation and implementation of marketing, employee recruitment and training, and financial and daily operation of the franchise. Alongside we will be given an operating manual explaining everything in greater detail and access to a toll free number for further questions (the number is not disclosed in the FDD.)3

RENEWAL, TERMINATION , TRANSFER INFORMATION If, for any reason, we as the franchisee wish to terminate the franchise, we are obliged to submit a written notice 60 days in advance. In this case we are obliged to pay all the amounts due to the franchisor. On the other hand, the franchisor may force the franchise to terminate for a plethora of reasons. While we can find all of them in the exhibit at the end of the report, I would like to summarize them here. Most of them are common sense such as if we are convicted for a crime or are involved in any kind of unethical conduct which affects the reputation of the Franchise Business. Other reasons include offering services outside our territory, understating Royalty by 5%, failing to pay the dues, or violate any covenant of confidentiality included in the agreement. We are also obliged to commence operation within six months from the date of payment of the initial franchising fee; this may be obvious, but it is good to keep it in mind. Another reason that may result to termination is if we bring the operation of the franchise to an halt for more than ten days. When the franchising agreement is naturally over, we have the opportunity to renew it for an additional ten years. The reasons such a renewal may be refused are inability to pay the dues to the franchisor, lack of full compliance with the Agreement at the date of renewal, or having received more than three notices for failure to comply with the terms of the Agreement during the past years of running the franchise. In order to proceed with 1 2 3

FDD, page 9 FDD, page 21 FDD, page 58 www.gbanis.com

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renewal, we have to give notice of our election to renew the Agreement between nine and six months prior to the end of the Agreement. Since the FDD that I could find was outdated, I decided to use the information given my Entrepreneur Magazine to report the number of franchises under the Molly Maid brand7. According to the website, the franchise experienced a steady increase in the United States through years 2006-­‐2009 (from 380 to 425 locations) and a steady decline during 2010 (420 locations). On the other hand, the international franchises face a steep decline from 317 franchises in 2006 to 181 in 2010. Details can be found in the exhibits at the end of the report.

FINANCIAL STRENGTH OF FRANCHISOR Molly Maid is a private company. As a result financial figures are unavailable. Please note that the following analysis is a personal understanding of the company according to historic data and figures found online and on the company’s FDD. To begin with, Molly Maid is an active franchising company since 1982. The fact that over almost thirty years it has established an international service with around 700 franchising locations worldwide is evidence for a steady growing company. Furthermore, the fact that the co-­‐founder, CEO, and chairman David McKinnon has been recognized as the entrepreneur of year 2002 by Entrepreneur Magazine adds more validity to the business. Taking a look at the gross sales figures of 20041 we realize that 177 franchises generated about $94.2M revenues. With an average 5% royalty fees, the franchisor generated about $4.7M royalties. If we estimated an inflated amount of a new franchising license to be around $50,000, then it would take about 100 new franchises to open in order for the new franchise earnings to match the royalty earnings. Thus it is safe to say that the franchising company is profitable. Finally, there is no information available either online or in the FDD regarding debt.

EARNING POTENTIAL REPORTED According to the information released by the franchisor we are able to get a rough idea about the revenue potentials from this type of franchise. The figures come from 177 franchises and is slightly outdated as it was taken during year 2004. According to this sample2 we realize a very large variance of revenues, with averages ranging from $162.7K to $1,083.2K. To my understandings, these numbers are so far apart probably because of the different locations and the demand for the cleaning services, or because of the capability of the people who run them. Again, note that these figures are gross sales and not net profits; something that has to be discussed with the franchisor and makes us take into even better consideration the potential of this franchise. Geographic data relevant to the sales are not provided, although we can find a table in the FDD3 which contains of statistics from the franchises that open and close in every state. From this table we can quickly realize that this franchise is most popular in California, with Michigan, Texas, and Virginia following.

1 2 3

FDD, page 39 Figure 5, Exhibit FDD, page 43 www.gbanis.com

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George Banis

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SUMMARY THOUGHTS REGARDING THE STRENGTH OF THE FRANCHISE In general I believe that as a potential franchisee, this is a very appealing option mainly because of the organization and the system that they maintain. Furthermore, the fact that they are in the business since 1982 gives validity to the company and inspires trust. The fact that the revenues from store to store vary so much is a fact that is hard to analyze and requires more research. Lastly, I find the initial fees and the royalties for the franchise logical but extra time must be spent on cost analysis and day-­‐to-­‐day expenses. Nonetheless, the franchisor has established bonds with a plethora of vendors, claiming to offer better pricing on inventory items.

FRANCHISE FIT WITH LOCATION IDEAS FOR LOCATION The location that interests me most is the Greater Boston area. The main reason is because I currently live there, I can relate a lot to the residents and can identify their needs and the optimal way to service them. Digging more into the specifics of the location1, I found out that the two optimal locations to host a Molly Maid franchise would be the area that includes West Newton to Wellesley, and Boston Metro. I also found out that the franchisor marks as a target market the Boston Metro area.2 The two specific locations that I would place this franchise would be: A. 665 Beacon Street, Boston, MA 02115, Space #2033 464 ft2 , $1.67/ft2/month, total rent: $775/month B. 447 Cherry Street, Newton, MA 024654 800 ft2, $1.25/ft2/month, total rent: $1000/month Other reasons why I picked those two locations include availability of parking space, easy access to major routes, have central spots to the territories of interest and are very welcome to potential customers who like to take a look at our franchise office. Also, both these offices are located in buildings that host other offices, encouraging a professional environment. I am interested most in location A. According to the leasing agency (LoopNet), the rental rate for this location includes all operating expenses and real estate taxes. Public transportation is one block away, giving easy access to employees. The lease type is Modified Gross. None of utilities, tax, or janitorial services are included, which should be estimated in the final cost to lease this office. The franchisor has not determined explicitly the size of the franchise office, but has determined that it should be enough to organize maid teams of two. So, 450 ft2 would do the job. The customer traffic is slightly irrelevant since we will not be operating a store front and it is only going to be complimentary as a mean of advertisement. Indeed, this office is located in a very good spot, as it is one block away from public transportation, and right on the intersection of three major roads: Commonwealth Avenue, Beacon Street, and Brookline Avenue. Located very close to Fenway Park, this office is guaranteed be in the heart of foot traffic. Moreover, it is very close to various colleges such as Boston University. College students may 1 2 3 4

I researched the location of other Molly Maid franchises and those of competitors. http://goo.gl/gtz2X http://goo.gl/Qp5c5 http://goo.gl/AIYP7 www.gbanis.com

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possibly become a new customer base. I also asked the real estate agency if we can place a sign of our business and they mentioned that this might be possible but we would need to further discuss it. Another thing to note is the fact that this building hosts a pet hospital. This may prove to be a great synergy to our business. The reason would be because of the customer base of the hospital. First people who own pets often times have high income to afford their care. Also, pets that are kept in house require more cleaning and care.

CHARACTERISTICS OF TYPICAL CUSTOMERS According to Molly Maid, their customer base is “primarily dual-income households, aging seniors, and single professionals recognize the need for residential cleaning services.” 1 These customers can value personal time and will consider house cleaning as an investment rather than an expense. The demand will increase as the female workforce expands, and women have limited time, opting to spend it with their family and friends. Also important customer base is the demographic of ages between 55-65. As this group ages, it is important to establish “bonded and insured domestic cleaning services.” Lastly, I foresee an increased demand of cleaning services to college students who will occasionally prefer to hire someone to clean their apartments after a friend gathering.

LOCATION ANALYSIS FOR FIT WITH TARGET CUSTOMER2 According to the data collected from SimplyMap, we find out that the population of the area within 2 miles of our target franchise is about 300,000 people. Out of this sample, about 32% of the females are not in the work force. This means that they are either not of legal working age, or have decided that they do not wish to work. Our target market involves mainly the rest 68% of the households which have working females with possibly not enough time to spend cleaning their homes. About 37% of the households in this area have income that averages above $35,000. These households are most likely to afford house cleaning services. We should also consider the households with income in the $25,000-­‐$34,999 range which adds another 8% of households. Another important factor that we have to keep in mind is the age range. While younger couples may value personal time and comfort and are willing to spend money in exchange for personal time, older couples may also chose our services because of inability to take care of the house on their own. A significant percentage of the population (23%) is in the range of 25 to 34 years old. 12.5% of the population in this area is aged between 55 and 74 years old. In the middle range we have people between 35 and 54 who add another 22% to our potential consumer base.

SUMMARY THOUGHTS REGARDING THE STRENGTH OF THE LOCATION Taking into consideration the above figures we realize that this location is very prestigious for this type of franchise. People can generally afford cleaning services and are very likely to become our customers as they fall in the categories that we mentioned before. On the other hand, one thing that worries me is the availability of 1 2

http://goo.gl/0AWkQ SimplyMap was used for this analysis with data from 2009 Census www.gbanis.com

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parking space near the customer locations, since it is well known that it is very difficult to park in the metropolitan Boston area. Otherwise, the potential location of the offices has many advantages among which parking spots, high traffic, and very easy access to public transportation. Besides, this area is included in one of Molly Maid’s proposed territories to establish a franchise.

FRANCHISE FIT WITH ME FIT WITH FRANCHISING IN GENERAL From what I learned in “The Entrepreneurial Universe” course, I strongly believe that franchising fits with my character and personality in every aspect. According to my personal experience in the family business, I have realized that not only did I not face any problems and difficulties with day-­‐to-­‐day operations, on the contrary I enjoyed “getting my hands dirty.” When it comes to managing people, I have also proved myself worthy by managing the family business office while my father was out of reach for extensive periods of time. Through the years, I established a better organized business both operations and marketing wise. So, my plan would be to get the franchise up and running, spending time and learning from it, but finally I would hire a manager to be trained by me, and eventually taking hold of the business so I can be free to venture with something new.

FIT WITH MOLLY MAID According to the franchisor, this business does not require technical experience or special training, although training will be provided. However, I strongly believe that in order to be successful, you must enjoy what you are doing and constantly consider ways of improving. I am a very tidy person and make sure my personal space is clean and organized and I appreciate people who share these qualities. There is a wide range of personal skills that I will bring to this business. First of all, my previous working experience and the ways to treat your customers. I also have to offer my knowledge for marketing and approaching new customers in a field or location that is new to a business. Also, my passion for tidiness and order will only be a positive aspect should I decide to get involved in this franchise, and will become a good tool to expand the customer base. The reason I would pick this franchise is because of its establishment in the field and the amount of years they are in this business. I do not want to invest precious time establishing the cleaning system that they can offer when I can simply spend my efforts doing what I enjoy most; management and marketing.

SUMMARY THOUGHTS All in all, I believe that this franchise is a very appealing choice and I would certainly consider it should I have the capital to invest. According to the above analysis, this seems to be a stable and safe investment, which can peak in sales if it is supported by good management and personal time. On the other hand, before going with a “safer” option, I would like to spend time setting up several start-­‐up ideas that have a smaller success rate but superior returns even to the highest ones that any franchise might offer. Nonetheless, now I have a better

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understanding of this franchise and in general to the franchising world. The time I spent was very beneficial to me as I am now able to spot the various details behind acquiring a franchise much faster and more accurately.

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EXHIBITS A. COSTS Initial Investment: Name of Fee Initial Franchise Fee Territory Fee Initial Package Fee Auto Lease Deposit and 3 Months Lease Expense Leasehold Improvements Real Estate, Utility Deposits and Three Months Rent Furniture, Fixtures and Equipment Permits and Licenses Insurance Deposit and Three Months Insurance Expense Local Marketing Requirement for three months Training Expenses for Travel, Food and Lodging Additional Funds-­‐3 Months Total 1 Date of FDD: 2009

Low $14,900 $20,000 $8,500 $1,500 $0 $3,000 $500 $100 $2,200 $5,000 $1,000 $10,025 $66,725

High $40,000 $4,800 $2,000 $3,200 $2,000 $1,000 $5,300 $10,000 $4,000 $16,300 $112,000

Ongoing Fees: Name of Fee Royalty

National Marketing Fund Technology Fee Local Advertising DSL Cable, or Satellite High Speed Internet Connection & Electronic Mail Monthly Service & Anti-­‐Virus Call Center Conventions and Regional Meetings Renewal Transfer Outstanding Royalties and fees of Predecessor Expansion Royalty Rates Additional Training or Assistance Carpet Cleaning Program and Training Carpet Cleaning Marketing Transfer of Company Fee Interest Late Payment Fee Late Reporting Fee Non-­‐Sufficient Funds (NSF) Fee Insurance Costs and Attorneys Fees Audit Indemnification 1 Date of FDD: 2009 1

Amount Percentage based on a calendar year sliding scale of Gross Sales: $0-­‐400,000 or if not in compliance = 6.5% $400,001-­‐800,000=6% $800,001-­‐1,200,000=5.5% $1,200,001-­‐$1,600,000=5% $1,600,001-­‐2,000,000=4.5% $2,000,001 -­‐ $2,400,000 = 4% $2,400,001 -­‐$2,800,000 = 3.5% $2,800,001 and up = 3% The then Current Fee. Presently, the current fee is $100-­‐$ 150 per month not to exceed 2% of Gross Sales. The then current fee. Presently the current fee is $26 per week for a single user, and $36 per week for a multi-­‐user, as adjusted each calendar year A new Molly Maid business will be required to spend $1 per Target Household, declining as Gross Sales increase, to a minimum of $0.25 per Target Household if at least $25,001 in weekly Gross Sales are attained and maintained for a calendar quarter. The then current fee. Presently, the current fee ranges from $79.00-­‐$ 159.00 per month for 1 account/user on 1 computer. The then current fee. Presently, the current set-­‐up fee is $99, plus $25 monthly fee, a $20 per estimate fee that is booked during the day and $25 per estimate fee that is booked in the evenings or on the weekend. The then current fee. Presently, the current Convention fee is $200 per person and $0 per person for Regional Meetings The then current fee. Presently, the current fee is $3,000 for one or more franchise agreements being renewed at the same time The then current transfer fee. Presently, the current fee is $9,900 for a full Territory being transferred, $4,900 if a portion is being transferred, and $2,000 if being transferred to another Molly Maid franchise owner. Will vary under circumstances. The royalty rates for each Franchise Agreement may be averaged and aggregated together to form one royalty rate and threshold scale for the all of the Franchise Agreements. In averaging and aggregating the rates and levels, Molly Maid will take into account the ratio of the then current number of Target Households in each Franchise Agreement. The then current training fee. Presently, the current fee is $500. The then current fee. Presently, the current fee is $3,300 per person, plus travel and lodging expenses. The then current fee. Presently the fees range from $500-­‐$ 1,000 per year. The then current fee. Presently this is $500 per transaction. Greater of 12% per annum or the maximum permitted by law 5% of Royalty amount due or $20 per week, whichever amount is greater The then current fee. Presently, the current fee is $20 per week that the report is late. The then current fee. Presently the current fee is $33 per transaction. Cost of insurance. If the franchisee fails to maintain his/her insurance as required, MOLLY MAID has the right to procure insurance on the franchisee’s behalf and charge an 18% administrative fee in addition to the cost of the insurance. Will vary under circumstances Cost of inspection or audit, (attorneys & independent auditors fees, travel expenses, room and board, compensation of employee), 100% of Royalty, Marketing and Promotional Fund contributions due on understated Royalty, interest (greater of 12% per annum or the maximum rate permitted by applicable law), and late fees Will vary under circumstances

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B. REASONS FOR TERMINATION BY THE FRANCHISOR

FIGURE 1A: AS SEEN ON THE FDD, PAGE 71

1

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FIGURE 2: AS SEEN ON THE FDD, PAGE 72

C. FRANCHISE STATUS SUMMARY Year

U.S. Franchises

Canadian Franchises

Foreign Franchises

Company Owned

2010

420

0

181

0

2009

425

0

271

0

2008

421

0

332

0

2007

407

0

317

0

2006

380

0

317

0

FIGURE 3: AMOUNT OF FRANCHISES OPEN THROUGH YEARS 2006-2010 www.gbanis.com

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Franchise 500® rank: #81 (2010); #104 (2009); #81 (2008); #83 (2007); #78 (2006); America's Top Global Franchises: #68 (2010); #83 (2009); FIGURE 4: MOLLY MAID'S HISTORICAL RANKS BY ENTREPRENEUR MAGAZINE

FIGURE 5: STATEMENT OF AVERAGE GROSS SALES FOR YEAR 2004

D. SIMPLYMAP DATA

FIGURE 6: MAP OF LOCATION (YELLOW “X”) COLORED BY POPULATION (SEE LEGEND ON THE RIGHT FOR POPULATION SIZES)

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Geographic Unit Census Tract # Employment, Civilian Employed Females, 2009 78468 % Employment, Civilian Employed Females, 2009 91.63 % # Employment, Civilian Employed Males, 2009 83207 % Employment, Civilian Employed Males, 2009 89.96 % # Employment, Civilian Total Employed, 2009 161675 % Employment, Civilian Total Employed, 2009 90.76 % # Employment, Not in the Labor Force Female, 2009 48598 % Employment, Not in the Labor Force Female, 2009 36.20 % # Employment, Not in the Labor Force Male, 2009 43055 % Employment, Not in the Labor Force Male, 2009 31.75 % # Employment, Unemployed Female, 2009 7171 % Employment, Unemployed Female, 2009 8.37 % # Family HHs, 2009 49175 % Family HHs, 2009 34.19 % # HHs w/ Inc. $100,000 and Over, 2009 37835 % HHs w/ Inc. $25,000 to $34,999, 2009 7.97 % % HHs w/ Inc. $35,000 to $49,999, 2009 11.53 % % HHs w/ Inc. $50,000 to $74,999, 2009 14.34 % % HHs w/ Inc. $75,000 to $99,999, 2009 11.40 % # Households (HHs), 2009 143825 % Pop, 25 to 34 Years, 2009 23.22 % % Pop, 35 to 44 Years, 2009 11.66 % % Pop, 45 to 54 Years, 2009 10.59 % % Pop, 55 to 64 Years, 2009 7.96 % % Pop, 65 to 74 Years, 2009 4.50 % # Population (Pop), 2009 302820 FIGURE 7: DATA FROM SIMPLYMAP, WITHIN 2MI OF CT010101, SUFFOLK COUNTY, MA

ALL OF USA 65,497,529 93.46 % 75,216,446 92.66 % 140,713,975 93.03 % 49,421,334 41.29 % 33,541,031 28.96 % 4,582,214 6.54 % 79,785,106 67.61 % 24,187,200 10.30 % 14.60 % 19.01 % 13.67 % 118,000,003 13.38 % 14.02 % 14.27 % 10.59 % 6.01 % 305,548,770

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