Ecomaids logo

Ecomaids Franchise

Audited Financials
Cleaning & JanitorialEst. 2010Holmdel, NJ
www.ecomaids.com

Risk Score

Pending analysis

Investment Range

$129,149 - $150,949

Franchise Fee

$25,000

Total US Locations

58

Business Summary

ecomaids offers environmentally friendly cleaning services for residential and commercial properties through a maintenance program. ecomaids businesses utilize the franchisor's proprietary systems, methods, and marketing programs, including a central call center and customer guarantees, operating within a specific geographic territory.

Corporate History

The ecomaids cleaning business system has its origins in 2010, drawing on the experience of its predecessors. ecomaids LLC, the current franchisor, is a Delaware limited liability company that acquired the ecomaids system in May 2019 from its predecessor, Thoughts Are Things Franchising, LLC (TATF). TATF initially began offering ecomaids franchises in August 2012.

Financial Overview

Investment Range

$129,149 - $150,949

Franchise Fee (Low)

$25,000

Franchise Fee (High)

$94,950

Royalty %

6.5%

Marketing %

10%

Equipment Costs (Low)

$4,750

Equipment Costs (High)

$8,950

Working Capital

$32,160

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

LD Parent, Inc., the parent company of ecomaids LLC, received an unqualified audit opinion on its financial statements, indicating they present fairly. The company's working capital has decreased but remains positive, standing at approximately $2.88 million in 2023. While consolidated net income slightly increased in 2023, total stockholder's equity decreased. In 2023, LD Parent, Inc. entered a new credit agreement of nearly $29.5 million to repay an existing loan, resulting in a loss on extinguishment of debt. Additionally, the company has $18 million in related-party notes at a 16% interest rate. No going concern issues were noted by the auditors or management.

Financing Details

ecomaids does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees.

Performance Metrics

Total US Locations

58

Franchised Units

58

Corporate Units

0

Avg Square Footage

500

Franchising Since

2012

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise, ecomaids franchisees must adhere to all provisions of their agreement. They are required to refurbish and re-equip each service vehicle, and repair or replace all operational equipment to meet current brand standards. Franchisees must provide ecomaids with written notice of their intent to renew between 6 and 12 months before the initial term expires. Upon approval, they must sign the then-current franchise agreement, which may contain different terms and conditions, including new fee requirements and territorial rights. Additionally, franchisees and their owners must execute a general release of all claims against ecomaids.

Training & Support Program

Franchisor Assistance

Before opening, ecomaids provides specifications, standards, operating procedures, and specialized supplies and equipment for the business. The franchisor offers reasonable guidance in developing the business and provides mandatory training to the franchisee and up to two designated supervisory employees. After opening, ecomaids continues to offer guidance through its operating manual, telephonic conversations, and consultations. Franchisees have access to the operating manual and additional content via a learning management system. ecomaids grants the right to use its trademarks, discloses confidential operational information, and advises on approved suppliers. The franchisor also maintains and administers a Centrally Managed Media Fund to generate leads within the franchisee's territory and a National Marketing Fund for brand development and system-wide marketing programs. ecomaids may also assist franchisees in setting prices for authorized products and services.

Initial Training Hours

70

Training Location

Corporate headquarters in Holmdel, New Jersey, and at a flagship location.

Ongoing Support

After opening, ecomaids provides continuous guidance for the business's operation through its operating manual, telephonic conversations, and consultation at either the franchisor's or the franchisee's office. Franchisees maintain access to the operating manual and additional learning materials. The franchisor manages a Centrally Managed Media Fund dedicated to driving leads within each franchisee's territory and a National Marketing Fund for broader brand development and marketing. ecomaids also reserves the right to assist franchisees with pricing for services and products. Franchisees are required to attend periodic conventions and conferences, paying all associated expenses and a registration fee.

Franchise Requirements

Ideal Candidate Profile

ecomaids seeks qualified individuals who are committed to the brand's mission and core values. Ideal franchisees must be dedicated to promoting their business and devoting their full-time energy and attention to its operation. Franchisees should also be prepared to ensure that any on-premises supervisor successfully completes ecomaids' training program and maintains confidentiality of proprietary information.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

hybrid

Owner Participation

full-time

Territory Type

non-exclusive

Territory Size Requirements

ecomaids grants a geographic territory that is defined to contain no less than 25,000 single-family residences. If, after four years of operation, a franchisee's market share falls below 70% of the average market share of all ecomaids businesses that have been operating for four or more years, the franchisor may reduce the size of the territory.