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Maid Right
How much does Maid Right cost?
Initial Investment Range
$167,100 to $218,500
Franchise Fee
$70,000
The franchise offered is for the establishment and operation of a residential cleaning business.
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Maid Right April 28, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The FDD's "Special Risks" section and financial statements in Item 21 disclose significant concerns. The guarantor, Premium Service Brands, LLC, has a Members' Deficit (negative net worth) of over $5.8 million and has reported net losses for the past two fiscal years. This financial condition calls into question the franchisor's ability to provide long-term support, invest in the system, and fulfill its obligations to you, creating a substantial risk for your investment.
Potential Mitigations
- An experienced franchise accountant must thoroughly review the guarantor's audited financial statements, including all footnotes, to assess its viability.
- Your attorney should review any state-mandated financial assurances, like bonds or fee deferrals, to understand the protections they offer.
- Discuss the company's plan for achieving profitability and resolving its negative net worth with your financial advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals an exceptionally high rate of franchisee outlets leaving the system. In 2024, 15 outlets (a combination of terminations and ceased operations) left, representing over 34% of the outlets that started the year. This pattern of high turnover is a critical red flag, potentially indicating systemic issues with franchisee profitability or satisfaction, which could significantly increase your risk of failure. This trend is also apparent in the 2023 data.
Potential Mitigations
- It is imperative to contact a significant number of former franchisees listed in Exhibit F to understand their reasons for leaving the system.
- Your accountant should help you analyze the turnover data over the past three years to confirm the high churn rate.
- Engaging a business advisor to critically assess the systemic issues that might be causing such high turnover is highly recommended.
Rapid System Growth
Low Risk
Explanation
This risk was not explicitly identified in the FDD package. Rapid growth can strain a franchisor's ability to provide support. While this system has not shown rapid growth recently, it is important to monitor outlet numbers and the franchisor's financial capacity to support its franchisees, as any future acceleration in growth could impact service levels. Your accountant can help assess the franchisor's ability to manage growth.
Potential Mitigations
- Question the franchisor directly about their capacity and plans for scaling support infrastructure if they plan for future growth.
- Interviewing a broad range of existing franchisees about the current quality and responsiveness of franchisor support is a valuable exercise.
- Your accountant can review the franchisor's financials in Item 21 to assess if they have the resources to support potential expansion.
New/Unproven Franchise System
High Risk
Explanation
The franchisor explicitly discloses "Short Operating History" as a special risk. Maid Right, LLC was formed in 2018 and has a limited track record, which presents a higher risk than investing in a more mature and established franchise system. An unproven system may have underdeveloped support, minimal brand recognition, and greater potential for instability. This direct acknowledgment underscores the risk you are taking on with a newer franchise concept.
Potential Mitigations
- Conduct extensive due diligence on the founders' and management's experience in both the residential cleaning industry and in franchising with your business advisor.
- Speak to the earliest franchisees about their experiences to gauge the system's stability and the franchisor's performance over time.
- An attorney may be able to negotiate more favorable terms, such as lower fees or better protections, to compensate for this higher risk.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A fad business is one tied to a fleeting trend, which can create long-term risk for franchisees who are bound by multi-year contracts. Residential cleaning is generally considered a stable, needs-based industry rather than a fad. However, it's still wise to assess the brand's specific market niche and long-term viability. A business advisor can help evaluate its sustainability.
Potential Mitigations
- Assess the long-term market demand for the specific services you will offer with help from a business advisor.
- Evaluate the franchisor's plans for innovation, adaptation, and staying relevant by reviewing the FDD and asking management directly.
- Consider the business model's resilience to economic downturns with your financial advisor.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. Management experience is critical for a franchisor's success and its ability to support franchisees. Item 2 indicates that the key executives have managed this and numerous other affiliated franchise brands for several years. While their overall compliance history presents other risks, their direct experience in franchising is not presented as a weakness. Your business advisor can help you assess the team's background in more detail.
Potential Mitigations
- Thoroughly vet the management team's background and specific track record in managing this and other franchise systems with your business advisor.
- Speak with existing franchisees about the quality of management's support, their understanding of the business, and overall strategic direction.
- Ask the franchisor how their past experiences have prepared them to support your new franchise.
Private Equity Ownership
Medium Risk
Explanation
The franchisor's ultimate parent company structure appears to be privately held by management and investors, not a publicly traded private equity firm. However, the multi-brand holding company structure under Premium Service Brands, LLC creates similar risks. Decisions may prioritize overall portfolio returns or preparing the entire group for a future sale over the specific needs of Maid Right franchisees. You should be aware of this dynamic, as a future sale could introduce a new owner with different priorities.
Potential Mitigations
- Research the track record of Premium Service Brands with the other franchise systems they own with help from a business advisor.
- Talk to franchisees about any changes in support, fees, or system direction that may be related to the parent company's strategy.
- Your attorney should review the franchisor's right to assign the agreement and explain the implications for you if the system is sold.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The franchisor, Maid Right, LLC, does not provide its own financial statements. Instead, it provides the consolidated financial statements of its affiliate and guarantor, Premium Service Brands, LLC. While this is permitted under a guarantee of performance, it means you cannot assess the specific financial health of the Maid Right entity itself. You are relying entirely on the strength of the parent, which, as noted elsewhere, has its own significant financial weaknesses.
Potential Mitigations
- Your attorney and accountant must review the Guarantee of Performance in Exhibit B to understand its terms and enforceability.
- Recognize that you are primarily assessing the financial health of the guarantor, not the franchisor entity you are contracting with.
- Ask the franchisor about the specific financial standing of the Maid Right brand, although they are not required to provide these details.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor discloses its predecessor, Maid Right Franchising, LLC, from which it acquired assets in 2018. The FDD appears to properly incorporate the history of the brand under this predecessor. It is important that a franchisee understands the full history of the brand they are buying into. An attorney can help verify that disclosures regarding predecessors are complete and accurate.
Potential Mitigations
- Ask your attorney to carefully review the information provided about the predecessor in Items 1, 3, and 4 of the FDD.
- When speaking with long-term franchisees, ask them about their experience under the predecessor company and if the transition was smooth.
- A business advisor can help you research the predecessor's historical track record for any additional insights.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses a significant history of litigation and governmental enforcement actions involving the franchisor’s parent company, affiliates, and principals. These actions, brought by former franchisees and state regulators, include serious allegations such as misrepresentation, fraud, and violations of franchise laws. This pattern is a critical risk, suggesting potential systemic issues with the parent company's sales practices and regulatory compliance that could directly affect your franchise relationship and the brand's reputation.
Potential Mitigations
- A thorough review of every litigation and government action disclosed in Item 3 with your franchise attorney is essential to understand the implications.
- Your attorney can help you research the public records for these cases to get more detail on the allegations and outcomes.
- Treat this pattern of litigation and regulatory actions as a major red flag and discuss its weight heavily with your legal and business advisors.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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