Your Franchise Investment: What to Expect

Understanding the costs associated with franchise ownership is critical for anyone considering investing in a franchise. From franchise fees to the fine print of startup costs, knowing details of your franchise investment is key to making an informed decision.

The Franchise Initial Investment

A franchise enables entrepreneurs to launch a business with a proven brand, training, and ongoing support. Startup costs vary depending on the franchise industry you choose and the size of the business. A home-based travel business can start at $2,500, while a large fitness center may have a $1 million price tag. Some franchises, like Two Maids, may offer a more affordable investment range, which can appeal to first-time franchisees or those with limited capital.

Details of the initial investment are outlined in the franchise disclosure document (FDD), which provides a breakdown of the franchise agreement. Some of the common line items in the initial investment include:

• Franchise fees: The upfront fee paid to the franchisor for the right to use their brand and system.
• Startup costs: Expenses related to setting up the franchise, such as location build-out, equipment, signage, and more.
• Training and support fees: Cost for initial and ongoing training provided by the franchisor.
• Royalty fees: Ongoing percentage of sales paid to the franchisor.
• Marketing and advertising fees: Contributions to national or regional marketing campaigns.
• Legal and professional fees: Costs for legal consultations, licensing, and other administrative requirements.

A new business needs working capital to cover operational costs in the early stages. A safety net also protects against unexpected expenses, such as repairs, legal issues, or changes in market conditions. Franchisees should budget at least three to six months of operating expenses.

Are You Ready to Own a Franchise?

To determine if a franchise is right for you, it’s crucial to find the right franchise investment that fits your goals. Owning a franchise requires financial, personal, and professional commitments. Before you start researching brands, ask these questions to determine if franchising is right for you.

• Are you prepared for the upfront costs and the potential need for working capital of a franchise?
• Do you want to be an owner-operator or a semi-absentee owner? Understand what type of franchise business model you want to own.
• Are you disciplined and able to operate within established brand standards and processes?
• Are you open to learning and applying feedback to maximize the value of a franchisor’s support system?

Tap into Recurring Revenue with Two Maids

If you are looking for a franchise under $100K, Two Maids offers a low-cost, high-reward opportunity in the home services industry. Dual-income households and seniors aging in place are generating high-demand for residential cleaning services. The U.S. cleaning market is on track to grow by $37.8 billion by 2029, according to Technavio.

For an initial investment starting at $93,440, you can own a recognized brand with a solid reputation in the industry. Two Maids offers up to $32,000 of in-house financing to make our franchise even more attainable.

Our recurring revenue model fosters stability and long-term growth. Our unique “Maid to Shine” incentive model ties customer satisfaction to employee success, making it easier to recruit and retain valuable talent. And we provide training and technology, including our immediate scheduling system that allows customers to receive a quote and book a cleaning within 60 seconds, to make your business successful.

Request information to learn more about the benefits of partnering with Two Maids to launch a home cleaning business in your community.