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Molly Maid Franchise ProfileCleaning Franchises > Residential Cleaning |
What are the Initial Investment Requirements for a Molly Maid Franchise?
To start a Molly Maid franchise, you should be prepared for an initial investment ranging from $138,300 to $196,200. This includes a franchise fee of $14,900, along with additional costs for equipment, supplies, and other startup expenses. It's important to have a net worth between $300,000 and $500,000 and sufficient cash on hand to cover these costs. Understanding these financial requirements can help you gauge whether you are ready to embark on this entrepreneurial journey.
What are the Ongoing Fees Associated with a Molly Maid Franchise?
Molly Maid franchisees are required to pay a royalty fee of 6.5% of their gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall operational costs of running your franchise. Being aware of these fees is crucial for budgeting and financial planning, as they will impact your profitability and cash flow over time.
What is the Average Revenue Potential for a Molly Maid Franchise?
On average, a Molly Maid franchise unit generates annual revenue of approximately $451,879. The median annual revenue stands at about $175,000, with the lowest reported revenue being $93,000 and the highest reaching up to $2,400,000. This revenue potential highlights the viability of the franchise model and the opportunity for significant earnings, provided you manage operations effectively and tap into your market's demand for cleaning services.
How Quickly Can You Expect to Break Even with a Molly Maid Franchise?
Franchisees can typically expect to break even within 12 months of operation. The investment payback period averages around 18 months, making it a relatively quick return on investment compared to many other franchise opportunities. This timeline can be appealing for aspiring entrepreneurs looking to see a return on their initial investment sooner rather than later.
Molly Maid Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Molly Maid Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 497 | 481 | 464 |
| Net Change YoY | -16 | -17 | |
| Franchised Units | 497 | 481 | 464 |
| Net Change YoY | -16 | -17 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The initial investment for a Molly Maid franchise ranges from $138,300 to $196,200. This includes a franchise fee of $14,900, which is required to join the network. The cash required to start operations falls within the same range, ensuring that potential franchisees are prepared for the financial commitment involved in launching their business.
Ongoing Fees
Molly Maid franchisees are subject to a royalty fee of 6.5% of gross sales, along with a marketing fee of 2%. These fees contribute to the ongoing support and resources provided by the franchisor, helping franchisees effectively market their services and maintain operational standards.
Financial Performance
Average annual revenue per unit for Molly Maid franchises is approximately $175,000, with a median annual revenue of $171,000. This indicates a solid earning potential for franchisees, allowing them to establish a profitable business in the home cleaning service sector. The highest annual revenue recorded per unit reached $2,400,000, showcasing the potential for significant financial success.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 12 months of operation, which is a favorable timeline for new business owners. The investment payback period is approximately 18 months, allowing franchisees to recoup their initial investment relatively quickly, provided they manage their operations effectively.
Franchise Growth
Molly Maid has seen a gradual decline in the number of franchised units, with 497 units in 2021, 481 in 2022, and 464 in 2023. While this trend may raise questions about growth, it also indicates a stable presence in the market, suggesting that existing franchisees are maintaining their operations without significant turnover.
Operational Insights
The average operating expenses for a Molly Maid franchise are around $360,002 annually, which includes costs such as selling expenses, general and administrative expenses, and advertising contributions. Understanding these costs is crucial for franchisees to manage their finances effectively and maximize profitability in their operations.
Frequently Asked Questions
The initial investment for a Molly Maid franchise ranges from $138,300 to $196,200. This includes the franchise fee of $14,900 and other startup costs.