Module 4: Financial Considerations

FINANCIAL

CONSIDERATIONS

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FINANCIAL INVESTMENT IS

PART OF ALL BUSINESSES One of the primary aspects of franchise ownership is the financial investment. Having the proper amount of capital is essential to the success of any business to cover startup and ongoing overhead. FINANCIAL CONSIDERATIONS

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THE FINANCIAL PROFILE OF A

MAID RIGHT MASTER FRANCHISEE In general, we have found that our Master franchise owners have a net worth of over $1.0 million, prior corporate income of more than $250,000 annually, and $150,000 liquid cash.

FINANCIAL CONSIDERATIONS

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ESTIMATED

START UP COSTS Your startup cost as a master franchise owner initially includes a franchise fee of $1.00 per qualified household in your exclusive market and your ~2,000-square-foot office space. The space will serve as your company headquarters and be where unit franchise owners come for seminars, training and supplies. Your business will not require extensive inventory, equipment or major-build-outs.

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SO WHAT DOES THAT EQUAL? In total, a Maid Right master franchise initial investment ranges from about $188,000-$351,000 depending on the territory and other factors such as working capital, marketing, and operational costs. Maid Right provides in-house financing for a portion of the initial franchise fee for qualified candidates.

FINANCIAL CONSIDERATIONS

Copyright ÂŠ 2017 Maid Right Franchising, LLC

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BREAKING DOWN

THE COSTS A Maid Right franchise is no different from any other business in that the franchisee will have to fund the initial start-up expenses until revenue from customers builds up. The franchisee will, however, benefit from the franchisor’s experience and other franchisees, who can provide a more accurate picture of working capital requirements.

FINANCIAL CONSIDERATIONS

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BREAKING DOWN

THE COSTS Initial Franchise Fee - $80,000-$120,000 This fee includes services to assist with start-up, initial training and the right to use Maid Right’s brand name.

FINANCIAL CONSIDERATIONS

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BREAKING DOWN

THE COSTS Capital Investment This investment includes leasing of office space and acquiring branded vehicles.

FINANCIAL CONSIDERATIONS

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BREAKING DOWN

THE COSTS Working Capital - $50,000-$70,000 The Franchise Disclosure Document (FDD) we share with you in this process provides an estimate of 3 months of working capital, but we recommend having 12-18 months of working capital for startup expenses such as salaries for support personnel.

FINANCIAL CONSIDERATIONS

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“

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

FINANCIAL CONSIDERATIONS

WARREN BUFFET

AMERICAN INVESTOR, BUSINESS MAGNATE, AND PHILANTHROPIST

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WE WORK

WITH YOU We realize each Maid Right master franchisee candidate has a unique financial situation and business goal. So we work with you to uncover the best financing options for your situation.

FINANCIAL CONSIDERATIONS

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WE OFFER

FINANCING OPTIONS Although there are many ways to help fund your financial investment, if you intend on securing additional capital, start having those discussions earlier rather than later. We have financial partners who can assist with financing, and we offer in-house financing on a portion of the initial franchise fee for approved master franchisee candidates. When you come to Immersion Day, our executive team will meet with you and review your franchise application to determine if in-house financing is appropriate.

FINANCIAL CONSIDERATIONS

Copyright ÂŠ 2017 Maid Right Franchising, LLC

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COMPELLING

COMPANY ECONOMICS Of course, looking at your checkbook isn’t all you should be considering when it comes to the financial aspect of a franchise. We also encourage you to look at how we are doing. Maid Right has come a long way in a short time and our system-wide current revenue run rate is more than $12 million annually. Maid Right’s sister company Jan-Pro’s system-wide revenues exceed $400 million annually.

FINANCIAL CONSIDERATIONS

FINANCING

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THE VALUE OF A

BRAND Our strong brand adds value to a company. But our branding is more than a logo, more than a website, more than a business card, and more than the colors and typeface chosen to represent our company. Branding is our voice in the marketplace. It’s our opportunity to create something with lasting impact. It’s how we tell our story, and it’s absolutely key to our success.

FINANCIAL CONSIDERATIONS

FINANCING

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“

Your brand is what other people say about you when you’re not in the room. JEFF BEZOS FOUNDER OF AMAZON.COM

FINANCIAL CONSIDERATIONS

FINANCING

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MAID RIGHT

BRAND BENEFITS Our strong Maid Right brand adds tangible benefits. • Creates brand differentiation in a generic service category • Adds credibility and value to every presentation • Sets expectations among audiences • Allows the spinning of other innovative ideas off of the master brand • Commands or protects pricing premiums in some settings • Wards off competitor attacks

FINANCIAL CONSIDERATIONS

FINANCING

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MAID RIGHT GENERATES

MULTIPLE REVENUE STREAMS

UNIT FRANCHISE SALES ONE TIME FEES PAID TO YOU • INITIAL UPFRONT FRANCHISE FEES • FRANCHISE PLAN UPGRADE FEES

A solid franchise company not only has strong financials but offers the opportunity for a typical franchise owner to earn a reasonable return from their franchise operation within a reasonable period.

FINANCIAL CONSIDERATIONS

FINANCING

RESIDENTIAL CLEANING SALES RECURRING REVENUE FEES PAID TO YOU • ROYALTIES • SUPPORT FEES • SUPPLIES

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WANT ADDITIONAL

FINANCIAL DETAILS? This training module was intended to provide an overview of the financial requirements of a Maid Right master franchisee. A further breakdown of fees and costs is included in our Federal Disclosure Document (FDD). This document is made available to master franchisee candidates during the discovery process. If you have specific questions that are still unanswered, contact your Maid Right franchise representative for assistance.

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THANK YOU! Thank you for taking the time to learn more about the financial considerations of a Maid Right master franchise. Please complete a short questionnaire about the information you just read. It will only take a few additional minutes of your time, and it will allow us to continue to move forward in the mutual evaluation process.

FINANCIAL CONSIDERATIONS

CLICK HERE FOR QUESTIONNAIRE

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