How much does a Molly Maid Franchise Cost? The overall investment potential ranges from $110,000 – $160,000, including a $14,900 franchise fee. A minimum of $20,000 in liquid funds is also required for prospective franchisees and a minimum net-worth of $250,000. Because Molly Maid is an SBA-approved franchise, qualified applicants can get financing through the Small Business Administration at a low interest rate as well. In appreciation for their selfless service and work ethic, veterans receive a 15% discount on the initial franchise cost.
How much is Molly Maid worth?
Household maintenance is among the country’s fastest-growing sectors. More than ten million American households for domestic cleaning services in their homes. Molly Maid’s annual revenue reached $201.9 million in 2020 and the industry is expected through grow by 6.1% annually through 2027.
We know there’s demand in commercial and residential house cleaning, but will you get a benefit from joining the Molly Maid’s franchise? You should know the company declined in system-wide revenue by more than $45 million dollars between 2019 and 2020. Read my full review including the pros and cons of this company, including insights from franchisees. Take our 8-minute franchise quiz to find our if this cleaning business if right for you.
- Financial Requirements and Fees
- How Much Profit Does Molly Maid Franchisees Make Per Year?
- Molly Maid SWOT Analysis
- Is Molly Maid Worth the Cost to Invest?
Financial Requirements and Fees
Each American home is a potential customer for professional home cleaning services. With families being busier than ever and both parents working outside the home, they increasingly recognize the value of a competent maid service.
The global cleaning industry is a $88.9 billion industry that is expected to grow at 6.1% percent annually the next 5 years. It’s a dependable, necessity-driven business with consistent consumer demand. The following are part of the upfront costs associated with a Molly Maid franchise.
|Beginning Startup Package||$5,000||$5,500|
|Initial Franchise Fee||
|Permits and Licenses||$100||$1,000|
|Real Estate, Utility Deposits and 3 Months’ Rent||$4,000||$6,000|
|Fixtures, Furniture and Equipment||$2,500||$3,500|
|Software Enrollment and Training Fee||
|Insurance Deposit and Three Months Insurance Expense||$2,200||$5,300|
|Additional Funds-3 Months||$25,000||$33,000|
|Auto Lease Deposit and 3 Months Lease Expense||$3,000||$5,500|
|Training Expenses for Travel, Food and Lodging||$4,000||$5,000|
|ESTIMATED TOTAL INITIAL INVESTMENT||$110,200||$160,200|
Housekeeping has shown to be a recession-resistant and automation-resistant industry. Ever try using one of those remote vacuum robots? You know they don’t quite do the job. Household responsibilities are frequently being outsourced to home care firms like Molly Maid as homeowners seek to eliminate tasks from their calendars and balance their hectic working lives.
Here are some of the fees that you should expect if you’re planning to open a Molly Maid franchisee.
|Liquid Capital||$60,000 – $70,000|
|Minimum Net Worth||$250,000|
|Total Investment||$110,200 – $160,200|
The franchise cost is only $14,900 or you may purchase an exclusive region for $45,000 – $65,000. A total of $8,500 is included in the initial package for equipment and materials. For the first three months, Molly Maid suggests having additional working cash between $35,000 and $50,000.
The total projected investment is calculated on a case-by-case basis, taking into account your existing facilities, supplies, and other factors. Molly Maid is looking for liquid funds in the $60,000 area, as well as a net worth of $250,000.
How Much Profit Does Molly Maid Franchisees Make Per Year?
Company revenue/sales per year: In 2020, the company make $201,900,000 in gross revenue.
Number of units: Molly Maid has 496 franchise units as of 2021.
Average Gross Revenue Per Unit: $201,900,000 (System-wide sales) ÷ 496 units = $407,056.
Industry Average Profit Margin: The average profit margin for the maintenance services industry is between 10% to 30%.
COVID-19 has shown a substantial impact on nearly every sector, as one might assume. Due to the pandemic, the normal gross profit margin and average net profit margin by the sector have changed.
Projected Annual Profit Per Unit: You can expect an annual profit of $40,705.60 – $122,116.80 with a Molly Maid franchise. This is based on typical profitability estimates in the cleaning sector.
Molly Maid SWOT Analysis
Molly Maid is a household cleaning service company dedicated to making people’s lives easier. Let’s find out the strengths, weaknesses, opportunities and threats of the business as I see them.
- Established name. Molly Maid is an iconic brand people obviously know they can depend in the place where they live, eat, and play, unlike other independent home cleaning businesses. Each one of their professional cleaning specialists goes through extensive training to guarantee that when they arrive at your home in the Molly Maid uniform, they are prepared and professional.
Since 1984, Molly Maid has created solid relationships with its customers. On a rare event when something is damaged or destroyed during one of their visits, they would be more than prepared to work with consumers.
- Professional service. Every service demonstrates the value of Molly Maid, and they aim to provide a clean that meets your needs. A supervisor holds every one of their residential housekeepers accountable for their cleaning, and Molly Maid even provides a 24-hour guarantee. This one-of-a-kind feature ensures that your home consistently exceeds your expectations.
- Insured housekeepers. Molly Maid also handles workers’ wages and employment taxes since Molly Maid personnel are not subcontractors.
- The company gives back. Molly Maid assists victims of domestic violence through a non-profit foundation, which donates funding and support for local community safe houses and shelters around the United States.
- High cost. Commercial maid service firms, such as Molly Maid, can charge up to $75 per hour for 2 cleaning specialists, and it’s not uncommon to pay around $300 for a half-labor day’s cleaning of an ordinary three-bedroom, 2,000-square-foot home. Make sure to speak with multiple companies in your region to compare pricing, and always inquire and check references prior to hiring to verify that you are getting the cleaning solutions you deserve.
- Employee dissatisfaction. As mentioned earlier, if Molly Maid had positive reviews on its client’s side, it had a different story on its staff feedback towards its employees. Employee complaints range from fair wages, uneven work turnaround rate, and a sense of belongingness with the company. Other than these issues, there were also reportedly trust issues within their colleagues though these were not specified. These concerns are apparently being addressed by Molly Maid to maintain a good relationship with their employees.
- Cultural differences. It is no secret that Molly Maid’s staff are composed of different races from across the globe. Though this should not be an issue provided that the company fosters a healthy relationship between its employees. However, social tensions may arise and this cannot be avoided due to disparity in customs and traditions. Enforcing a good solid company convention between its employees can somewhat mend this issue.
- Development of proprietary products. Currently, Molly Maid is using third-party branded cleansing agents as their cleaning products. While these products or brands have been trusted for years, Molly Maid can develop its very own cleaning products as a way to strengthen brand recall among its clients. Having your own branded products help promote your company’s image towards your customers.
- Expanding online sales. People are becoming aware of the multiple benefits of on-demand app-based companies. Rather than asking around for reliable service providers and then asking a handyman to remedy the problem, app-based service providers have their very own big database of handymen. In a matter of minutes, one can quickly access and reserve service. These services are now available on-demand, and they are also very efficient and cost-effective, in addition to being professional, a little disruptive, and safe.
- Recruiting and retaining the best employees. In the cleaning sector, there has long been a public notion that professional cleaning involves low-skilled labor. Despite the fact that this is not the case, particularly in highly skilled commercial and industrial applications, this notion leads to substantial employee turnover in the cleaning industry. Because of this bad reputation, applicants for available positions may not be the right match, and those who are a good match may not want to remain in the position for long.
Related Reading: 150+ Cleaning Business Slogans and Quotes that Increase Sales
A cleaning company’s employees can make or lose it. Cleaning firms need to become efficient at selecting the correct people for the job if they want to cut hiring costs while enhancing the quality of their workforce. This necessitates cleaners providing more thorough and precise job descriptions as well as doing cultural background checks as part of the hiring process. Cleaning firms could also build more appropriate interview questions and make clear that their expectations are stated properly during the interview process.
- Making the most out of the budget. Cutting expenses has been a concern for commercial cleaning firms for as long as they have been. Budget concerns affect the whole of the cleaning sector, just as they do any other industry. Budgets can constrain a company, forcing it to achieve more with less. Cleaning companies must continue to deliver quality service on a lesser budget as the economy declines and cleaning becomes a novelty item that businesses believe they can cut down on.
Molly Maid is among the most well-known domestic cleaning businesses in the country with hundreds of franchises across the United States. Entrepreneur magazine has named the company one of the top 175 franchises in the United States on their “Franchise 500” list. They’re also a global franchise so you can operate this business even if you don’t live in the United States.
Molly Maid distinguishes itself from the competition and freelance maids by providing complimentary in-home assessments and a 24-hour satisfaction commitment. Ensuring clients’ peace of mind, Molly Maid staff are fully insured, and its locally run franchises never ask for protracted engagements (contracts).
Adrienne and Chris Stringer launched Molly Maid in Canada in 1979, which was inspired by the protagonist Molly Brown from the 1964 film The Unsinkable Molly Brown. They were the first to come up with the idea of a high-quality house cleaning service provided by highly-trained and uniformed workers in company-branded vehicles.
Jim MacKenzie, the company’s Chairman, and members of its Board of Directors that are still active in the business made an investment in the Stringers’ company in 1980. They embarked on a mission together which saw Molly Maid expand throughout Canada and the rest of the world.