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MAID BRIGADE - FDD UFOC ITEM 7 Detail
ITEM
7
YOUR ESTIMATED INITIAL INVESTMENT
Estimated Initial Investment for SELECT MARKET
Franchises
|
Expenditure
|
Estimated Amount
|
Method of Payment
|
When Due
|
Refundable
|
To Whom Payment Is Made
|
|
Initial Franchise Fee(No,?l)
|
$9,500
|
Lump Sum
|
On Signing .
Franchise
Agreement
|
No
|
Us
|
|
Computer Equipment (Nrte3)
|
$1,000
|
Lump
Sum
|
As Incurred
|
No
|
Third Parties
|
|
Equipment,
Fixtures, Other Fixed Assets Including Leasehold Improvements, Signs,
Pre-Opening ExpenseslNole4)
|
$1,000-$1,500
|
As Incurred
|
As Incurred
|
No
|
Third Parties
|
|
Opening Inventory(No,e 51
|
$2,500
|
Lump Sum
|
On Signing
Franchise
Agreement
|
No
|
Us
|
|
Automobile <No,e7>
|
$500 per Month
|
Monthly
|
Prior to Use
|
No
|
Third Parties
|
|
Insurance and Bond(No,c8)
|
$1,000-$2,000
|
Monthly
|
As Incurred
|
No
|
Third Parties
|
|
Training Expenses<No,e9)
|
$2,000
|
Lump Sum
|
Prior to Opening
|
No
|
Third Parties
|
|
Opening Advertising and
Telephone
Listing (I**C ,0>
|
$9,000 for the first
three
(3) months
|
Lump Sum
|
As Incurred
|
No
|
Third
Parties
|
|
Additional Funds-3 Months
(Note 11)
|
$9,000 for the
first three (3) months
|
As Incurred
|
As Incurred
|
No
|
Third Parties
|
|
TOTAL ESTIMATED INITIAL
INVESTMENT FOR SELECT MARKET FRANCHISE (No,e,2)
|
$35,500-37,000
|
|
|
|
|
INITIAL INVESTMENT
Estimated Initial Investment for Standard and Major
market Franchises
|
Expenditure
|
Estimated Amount or Estimated Low to High Range
|
Method of
Payment
|
When Due
|
Refundable
|
To Whom Payment Is Made
|
|
Initial Franchise Fee0*"*"
|
S29.500-S58.500, for
territories with minimums of 25,000 and 60,000 qualified households
respectively, plus $1 for each additional qualified household
|
Lump Sum
|
On Signing
Franchise
Agreement
|
No
|
Us
|
|
Real Estate/Office(No,e2t
|
$500-$l,000
|
Monthly
|
Prior to Opening
|
No
|
Third Parties
|
|
Computer Equipment(Nole
3)
|
$1,000-52,000
|
Lump Sum
|
As Incurred
|
No
|
Third Parties
|
|
Equipment, Fixtures, Other Fixed Assets Including
Leasehold Improvements, Signs, Pre-Opening Expenses(Note4)
|
$l,5O0-$3,000
|
As Incurred
|
As Incurred
|
No
|
Third Parties
|
|
Opening InventoryfNQlci)
|
55,000-Standard $7,500 Major
|
Lump Sum
|
On Signing
Franchise
Agreement
|
No
|
Us
|
|
Security Deposits and Other Prepaid Expenses(NMt6)
|
$1,000-52,000
|
As Incurred
|
As Incurred
|
No
|
Third Parties
|
|
Automobile(Notc7)
|
$500 per Month
|
Monthly
|
Prior to Use
|
No
|
Third Parties
|
|
Insurance and Bond <No,eS>
|
$1,000-52,000
|
Monthly
|
As Incurred
|
No
|
Third
Parties
|
|
Miscellaneous Opening
Expenses
|
$1,000-52,000
|
Lump Sum
|
Prior to Opening
|
No
|
Third Parties
|
|
Training Expenses(ND,e9)
|
$2,000
|
Lump Sum
|
Prior to Opening
|
No
|
Third Parties
|
|
Opening Advertising and
Telephone Listing(*wc 10>
|
$12,000 for Standard Market,
$16,000 for Major Market. Represents first three (3) months
|
Lump Sum
|
As Incurred
|
No
|
Third Parties
|
|
Additional Funds-3 Months
(Now 11)
|
$32,000-$36,000
|
As Incurred
|
As Incurred
|
No
|
Third Parties
|
|
TOTAL ESTIMATED INITIAL
INVESTMENT FOR CHOICE MARKET FRANCHISEiNow l2J
|
$87,000-97,000 for Standard
Markets
$122,500-
132,500 for Major Markets
|
|
|
|
|

Explanatory
Notes:
1.
See
Item 5 of
this Disclosure Document.
2.
You
must establish and maintain an office outside of your home if you purchase a
Standard or Major Market. If you purchase a Select Market Franchise, you may
operate out of your home. If you operate a Standard or Major Market Franchise,
we must approve the size, rent and location of your office. It is our intention
to help you properly control rent expense. The cost for your office will vary
considerably depending on the size and location of the office, from a
negligible amount for a small office in an office park to a substantial amount
for a high-visibility office in an office complex, which rarely occurs. The
size of your office will vary depending on the type of franchise you purchase:
|
Type of Franchise
|
Square Footage Recommended
|
|
Franchise
Territory with at least 25, 000 Qualified Households
|
400 - 700 ft.2
|
|
Franchise
Territory with at least 60,000 Qualified Households
|
700 - 900 ft.3
|
3.
This
estimate includes a connection charge to an Internet provider. We will give you
a list of computer equipment you will need in order to operate our proprietary
software program whether MicroMaid, which is the current program, or MaidSmart,
by Total Management Software Solution software, which will be instituted in
2007. You do not purchase the computer equipment from us. The cost of the
equipment you purchase will vary depending on the amount of equipment you buy,
the supplier you choose, general economic conditions, your geographic location,
and your persistence in obtaining the best prices available. You must have
Internet access and email. You may be required to purchase a Personal Digital
Assistant that meets our specifications.
4.
Your
costs will vary depending on the size, configuration, and condition of the
furniture, supplies, signs, and fixtures you select and the location of your
office.
5.
This
represents your Initial Package. See Items 5 and 8 of this Disclosure Document.
6.
Your
landlord will generally require you to pay the first and last months* rent as a
deposit. Utility companies and rental agencies will probably require you to pay
deposits and prepaid expenses, including prepaid expenses relating to
furniture, fixtures, or equipment you may lease.
7.
You
must use clean, relativity new automobiles for business transportation. The
estimate does not include ongoing gas and maintenance expenses, which you must
normally pay on a monthly basis. If you purchase the automobile(s) you use,
your initial investment will be significantly greater than the table shows. We
require that your vehicles display our proprietary car "wrap," that
we specify from time to time. Our approved vendors may include the cost of the
wrap in the lease or purchase price of the vehicle.
8.
The
figures shown in the tables cover premiums for the insurance you must maintain
and the costs you are likely to incur in obtaining a blanket fidelity bond in
the amount of $10,000 for each employee.
9.
For
all Markets we do not charge you for our training programs for new franchisees,
which consists of Pre-Opening Training and Corporate training. Standard and
Major Markets receive additional training On-Site Training at our training
center and the franchisee''s local office at no cost. Select Markets may obtain
the On-Site training for an additional fee. See Item 11 of this Disclosure
Document. You are responsible for the travel, food, and lodging expenses you
incur when you attend our training program and the salary and benefit costs of
your attendees. Costs vary due to distances from your location to our
headquarters and the quality of the food and lodging you choose.
10.
Your
advertising cost is directly related to the amount and type (television, radio,
brochures, newspaper advertisements, direct mail, and other types) of
advertising you conduct. The amount you spend is within your discretion, but
Select Markets must spend $3,000 for the first three (3) months. With respect
to the Standard and Major Markets, you spend a minimum of $48,000 per year for
the Standard Market and $64,000 for the Major Market, and to the extent that
your territory contains more than the minimum number of Qualified Households,
your obligation will increase on a pro rata basis. The numbers in the chart
above reflect the minimum obligations for the first six months of operation.
11.
Working
capital covers the initial expenses you are likely to incur while you establish
the Franchise, and those you are likely to incur between the time you begin
providing services and the time you begin having a steady cash flow from
payments by customers. These expenses include costs related to performing
background checks, hiring employees, initial employee wages, and purchasing
other goods and services. Your expenditures will depend on factors like your
business skills and experience, general and local economic conditions,
competition, the prevailing wage rate, the amount of services you provide
during the initial period, how well your business is performing, and the number
of hours you are willing to invest in your Franchise. These expenses do not
include any draw or salary for the owners of the Franchise, but they do include
additional office support services you may need.
12.
In
compiling this chart, we relied on our experience in the operation of home
cleaning services and information our franchisees gave us. The amounts shown
are estimates only and may vary for many reasons. You should review these
estimates carefully with a business advisor before you make any decision to
purchase a Franchise. We do not offer direct or indirect financing to you for
any of these expenses. Many of the expenses listed are not within our control
and are determined more by general and local economic conditions than our
actions. A bank or other lending institution may finance all or a part of your
investment on terms we cannot estimate. The availability and terms of financing
will depend on factors like the availability of financing, your creditworthiness,
collateral you may have, lending policies of your financial institution, and
local economic conditions.
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Maid Brigade
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MAID BRIGADE FDD & UFOC Data
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MAID BRIGADE FDD & UFOC ITEM 7
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