Molly Maid Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$139,900 - $197,200
Franchise Fee
$37,838
Total US Locations
448
Business Summary
Molly Maid franchisees operate businesses that provide professional residential housekeeping services. The Molly Maid business system focuses on delivering a premium home cleaning experience to consumers, primarily targeting repeat residential customers with weekly, alternate weekly, tri-weekly, or monthly service, although one-time or occasional cleans are also offered. Franchise owners are responsible for managing the business and employing qualified individuals to perform the actual cleaning services, rather than performing the cleaning themselves.
Corporate History
The Molly Maid System was initially developed and offered in Canada in 1979 by Molly Maid International, Inc. Molly Maid, Inc., a predecessor to the current franchisor, was incorporated in Michigan in 1984 and acquired the rights to the System, trademarks, and trade secrets for the United States. In 1994, Molly Maid, Inc. expanded its rights to include Bermuda, and in December 2017, it acquired worldwide rights, excluding trademarks in Canada, the UK, Portugal, and Japan. In June 2015, Neighborly (formerly The Dwyer Group, Inc.) purchased Molly Maid, LLC, making it a wholly-owned subsidiary. Molly Maid, LLC offered franchises until March 2021. The current franchisor, Molly Maid SPV LLC, a Delaware limited liability company, was organized in November 2020. In March 2021, through a securitization transaction, all U.S. franchise agreements and intellectual property for Molly Maid businesses were transferred to Molly Maid SPV LLC, making it the current franchisor. In August 2021, Nest Bidco Inc., controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR), became Molly Maid SPV LLC's indirect parent company.
Financial Overview
Investment Range
$139,900 - $197,200
Franchise Fee (Low)
$37,838
Franchise Fee (High)
$86,400
Royalty %
6.5%
Marketing %
2%
Equipment Costs (Low)
$13,700
Equipment Costs (High)
$22,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Neighborly Assetco LLC, the direct parent and guarantor of Molly Maid SPV LLC, appears to be in a strong financial position. In 2024, it reported net income of $159.37 million and generated $254.37 million in cash from operating activities, with total current assets of $51.28 million against $17.74 million in current liabilities. Its financial statements received an unqualified opinion from independent auditors, indicating fair presentation in all material respects, with no going concern qualifications. While Neighborly Assetco LLC is part of a larger corporate structure with significant securitized debt, it was in compliance with all debt-service coverage covenants as of December 31, 2024. The ultimate parent, Neighborly Company, reported a net loss of $39.12 million in 2024, an improvement from a $439.08 million loss in 2023 (which was primarily due to a significant goodwill impairment charge of $417.59 million in 2023). Neighborly Company's operating income turned positive in 2024, and it also received an unqualified audit opinion.
Financing Details
Molly Maid offers direct financing for a portion of the Initial Fees to qualified prospective franchisees. While there's no obligation to provide financing, it may cover up to 70% of the Initial Fees, or up to 80% for franchisees meeting specific requirements. The interest rate for this financing is 10% for credit scores between 650-699 and 9% for scores of 700 or more. Franchisees must sign a promissory note and repayment terms generally range from 5 to 9 years, with monthly payments starting about two months after completing Phase I Training, collected via automatic bank draft. Molly Maid requires a security interest in all business assets and a personal guarantee from owners (and potentially their spouses). Prepayment is allowed without penalty. Additionally, Molly Maid facilitates vehicle financing through Enterprise, which may offer loans ranging from $23,500 to $26,500 per vehicle with a 0% down payment and repayment terms of 4-5 years, at an interest rate of 400 basis points plus the 3-year treasury rate. Molly Maid receives a residual benefit from these vehicle purchases if certain fleet volume requirements are met. The franchise is also eligible for streamlined loan processing through the Small Business Administration (SBA). While Molly Maid suggests other third-party lenders, it does not guarantee these loans or receive income from referrals.
Performance Metrics
Total US Locations
448
Franchised Units
448
Corporate Units
0
Franchising Since
1984
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Molly Maid has disclosed two past litigation cases, neither of which are recent or involve the current franchisor entity directly. The first case, from 2010, involved Molly Maid's predecessor, Molly Maid, Inc., in Kansas. Allegations included violations of the Kansas Consumer Protection Act due to a franchisee's inability to document background checks and the sale of gift certificates after franchise termination. Molly Maid, Inc. denied wrongdoing but settled, paying a civil penalty of $25,000 and investigation costs of $25,175, with the matter satisfied in 2011. The second case, from 2017, involved an affiliate's predecessor, FOR Franchising LLC (which offered Window Genie franchises). This case resulted in a Consent Order with the California Commissioner of Business Oversight for failing to submit advertisements before providing them to California residents. FOR Franchising LLC settled for a $5,000 administrative penalty and agreed to remedial education. All disclosed litigation has been resolved.
Bankruptcy History
Molly Maid SPV LLC, the franchisor, does not have its own bankruptcy history. However, its indirect ultimate parent company, Kohlberg Kravis Roberts & Co. L.P. (KKR), has controlled several portfolio companies that have filed for bankruptcy. These include The Collected Group LLC, which filed for Chapter 11 reorganization in April 2021 and emerged in May 2021; Envision Healthcare Corporation, which filed for Chapter 11 reorganization in May 2023 and emerged in November 2023; Genesis Care Pty Limited, which filed for Chapter 11 reorganization in June 2023 and emerged in February 2024; IPI Legacy Liquidation Co., which filed for Chapter 11 reorganization in December 2023 and emerged in April 2024; and Café Coffee Day, which faced an insolvency resolution filing in August 2024, though the order was set aside in February 2025. These proceedings did not directly involve Molly Maid SPV LLC.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Molly Maid franchise, franchisees must provide written notice between 180 and 240 days before their current agreement expires. They must be in full compliance with their current Franchise Agreement, have satisfied all financial and material obligations on time, be in good standing, and not have received a written default notice in the 12 months prior to renewal. Additionally, franchisees cannot have received more than two written default notices during the entire term of the agreement, even if those defaults were cured, and must have met the Minimum Performance Standards for no more than two calendar years or measurement periods. Other requirements include completing current training, signing a general release of claims, and paying a $5,000 renewal fee. Franchisees must also sign the then-current version of the franchise agreement, which may have different terms and higher fees. After one renewal, franchisees do not have further rights to renew.
Training & Support Program
Franchisor Assistance
Molly Maid provides a comprehensive support system to its franchisees, beginning with pre-opening assistance that includes site selection guidelines, an Initial Startup Package list of equipment and supplies, and access to the Operations Manual. Initial training programs are provided, followed by opening support. Ongoing assistance features the maintenance of a Marketing, Advertising and Promotion (MAP) Fund for national, regional, and local campaigns. Franchisees receive updates on approved supplies and suppliers, market research, and new product/service development. Molly Maid conducts periodic visits for consultation, offers refresher training courses, regional meetings, and an annual 'Reunion' event. They provide continuous communication and updates to the Operations Manual, and maintain a toll-free number (800-MollyMaid) to route customer calls. The franchisor may also offer suggestions on pricing, negotiate Key Account arrangements, and provide access to preferred customer plans. Franchisees are required to use a specific Computer System and Software System, including business management software (CLEO) and a Technology Package (Qvinci, NPS product, Office365 email, FranConnect), for which training and support are provided by the franchisor's designee, ZorWare. An optional web-based job applicant tracking system, Paradox ATS, is also available for an annual fee. Franchisees must also utilize an approved third-party call center for managing customer calls and leads.
Initial Training Hours
173
Training Location
Waco or Irving, TX, or virtual
Ongoing Support
Molly Maid provides ongoing support to franchisees through various channels. This includes continuous communication and updates to the Operations Manual, as well as periodic visits from the franchisor's team for consultation and guidance. Franchisees are required to attend refresher training courses, regional meetings, and an annual 'Reunion' event, for which fees may apply. The franchisor maintains a Marketing, Advertising and Promotion (MAP) Fund, administered by Neighborly Company, which is used for national, regional, and local advertising campaigns. A service is also provided to route selected customer calls from the 800-MollyMaid number to franchisees. Molly Maid may offer suggestions on pricing policies, negotiate Key Account arrangements (including pricing), and offer preferred customer plans. Franchisees are required to use a specific Software System, including CLEO and a Technology Package (Qvinci, a Net Promoter Score product, Office365 email, and FranConnect), for which ongoing support and maintenance services are provided by the franchisor's affiliate, ZorWare, for monthly fees. Franchisees are also required to use an approved third-party call center for handling rollover customer calls, lead follow-up, and online scheduling confirmations.
Franchise Requirements
Ideal Candidate Profile
Molly Maid seeks individuals who are committed to direct and active supervision and management of their business, dedicating full-time attention to its operation. Franchisees, or their designated Principal Owners if an entity, must ensure they possess and maintain the necessary immigration status to live and work in the United States for the entire term of the franchise agreement. While specific industry or sales experience is not explicitly required, candidates are expected to build customer trust through a professional approach and effectively utilize advanced computerized systems, personalized marketing programs, and customer relationship management tools provided by the Molly Maid system.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Molly Maid defines territories by U.S. Zip Codes, assigning 'points' to each physical household. An additional point is given for households with an annual gross income of $100,000 or higher, and other demographic factors like occupant age and presence of children may also contribute points. The sum of these points, multiplied by 0.15, determines the 'Target Household' (TH) total for the territory. Typical territories include approximately 45,000 to 70,000 TH, with the territory fee calculated at $1.00 per TH. Molly Maid reserves the right to adjust the TH for territories based on market conditions, urban/rural exceptions, remnant inventory, and expansions.
Staffing Notes
Molly Maid franchisees are responsible for employing a sufficient number of competent and trained individuals to provide efficient customer service. Franchisees are the sole employers of their staff, responsible for all employment decisions, tax withholdings, wages, and benefits. Franchisees must ensure that all employees and subcontractors pass required background checks before entering a customer's home. The training provided by Molly Maid to workers focuses on delivering approved services according to the System's customer service standards, without shifting any employment-related responsibilities from the franchisee to the franchisor.