If you want to own a residential cleaning service business, Molly Maid could be one of the best options available in the market. This company allows franchisees to deliver their high-end residential cleaning service with over 400 locations nationwide. It is one of the 10 best house cleaning franchise opportunities that you can own in 2024.
With many outlets, high gross annual revenue, and brand awareness, is the Molly Maid franchise really a good idea? In this article, we will go through all the details about the Molly Maid franchise system and what you can expect.
About Molly Maid and Molly Maid History
Molly Maid is a high-end residential cleaning service franchise company. The company was founded in 1979, and they have been franchising across the nation ever since. They expanded to the United States in 1984, and they have their headquarters in Michigan. Because they have a long history of franchising, they have an established franchise training system that provides exceptional value.
Currently, the brand has about 454 outlets across Canada and the United States. Operating in a niche market, Molly Maid presents the franchisees with a good opportunity to use its brand awareness to start making money in a short amount of time.
Franchise Model Table
How Much Does it Cost to Open a Molly Maid Franchise?
The expected total cost for one Molly Maid franchise varies between $133,700 and $191,700. This expected cost is only the start-up costs like the location, construction, payroll, equipment, and the $14,900 franchise fee.
Depending on several factors, such as the size and location of the store, the real investment numbers might be outside of this range. This is the average of what previous franchisees have spent.
The company doesn’t have any professional requirements. This means that whether you have experience in the industry or are a franchise manager or nothing at all, you can apply to be a Molly Maid franchisee. However, having experience will increase your chances of approval.
The only requirement Molly Maid mentions in its FDD is financial. Potential franchisees must have available liquid capital of $65,000 and a minimum net worth of $250,000.
Molly Maid Franchise Profit & Revenue
Molly Maid provides a comprehensive financial report about their profit and revenue numbers on its FDD. However, it doesn’t provide any information on how much the franchised stores make.
Based on the numbers on its FDD, the company made $274 million in annual revenue in 2022. Of this $274 million, $210 million was gross profit. When all the expenses were removed, the company didn’t make any profit. They had a net loss of $5 million.
Molly Maid Failure Rate
|Outlets at the Start of the Year
|Outlets at the End of the Year
For the Franchised outlets:
- In 2019, the failure rate was (0)/475×100≈0%
- In 2020, the growth rate was (10)/475×100≈2.1%
- In 2021, the growth rate was (7)/485×100≈1.4%
According to the data mentioned above, the franchised outlets for the Molly Maid franchise remained the same in 2017 and saw growth of 2% and 1.4% in 2018 and 2019, respectively.
Training and Support
Molly Maid provides an initial training program called “Sure Start,” which lasts 15 to 17 weeks. This program aims to teach the franchisees everything about pre-opening and post-opening.
The first part of this program is mostly classroom training about financials, manuals, advertising, insurance, permits, and every other operational thing. The second part is on-the-job training that happens at either Waco or Dallas for eight days.
As part of its support program, the franchisor provides ongoing training through its own software, Knowledge Base.
Additionally, they help with newsletters, field operations, online support, publications, and the intranet platform. There is also ongoing marketing support that includes all parts of regional and social media marketing.
Terms of Agreement and Renewal
The initial franchise agreement is for ten years. Once the initial ten years are over, there might be an additional 10-year term for renewal.
The franchisor must approve this renewal, and the franchisee must meet certain requirements for the renewal to go through.
Obligations and Restrictions
All individual franchisees must be present full-time at the store to oversee and supervise the daily operations of the franchised store.
In special cases, the franchisor could approve someone else for the supervision of the store other than the franchisee, but this person must be approved by the franchisor. In case the franchisee is a legal entity, a designated manager who has completed the initial training must be appointed.
The franchised store can only sell products and services that meet the specific requirements and standards of the franchisor.
Also, the franchised store can only sell products and services that the franchisor asks for, and other products that the franchisee wants to sell must be approved by the franchisor.
Molly Maid offers partial assistance only for a portion of the initial franchise fee. The franchisee must meet certain requirements to be able to get this financial assistance. However, the franchisor’s assistance is limited to this franchise fee assistance.
In some cases, Molly Maid partners with third-party sources to make financial assistance available to interested franchisees.
They only refer the franchisee to this third-party source, and it does not guarantee that you will get the assistance. You still need to meet the requirements of the third-party source.
Molly Maid Comparison
Molly Maid is a long-standing franchise company that has been franchising since 1979, and they have built an amazing franchise system. Their brand awareness and over 450 stores in two countries make it easy for entrepreneurs to start making money without waiting for too long.
However, it is worth noting that the company made a net loss in the latest available financial report. This might show a risky position, but Molly Maid has long-standing franchisees that have been operating for years, which looks like it neutralizes this risk.
How to start a Molly Maid franchise?
If you meet the necessary financial requirements, you can start a Molly Maid franchise. All you need to do is get in touch with them either via email or call, and they will walk you through the process.
Is Molly Maid a franchise?
Yes, Molly Maid is a franchise.
How much is the Molly Maid franchise fee?
The Molly Maid franchise fee is $14,900, and it is a one-time fee paid in a lump sum.