Mosquito Squad Franchise

Financing Details

Mosquito Squad may allow franchisees to finance up to 75% of their initial franchise fee and any additional population fee. If approved, the remaining balance can be paid over up to 36 monthly installments, with an annual interest rate of 12%. Franchisees can prepay this loan without penalty at any time. Mosquito Squad requires a security interest in the assets of the franchised business for this financing. However, this financing option is not available for transactions involving brokers or certain referral programs. Aside from this, Mosquito Squad does not offer any other direct or indirect financing to franchisees and will not guarantee any other loans or obligations.

Litigation Summary

Mosquito Squad Franchising SPE LLC recently concluded an Assurance of Discontinuance (AOD) with the Massachusetts Attorney General. This AOD, filed on September 10, 2024, resolved an investigation where the Attorney General alleged that Mosquito Squad and its Massachusetts franchisees made misleading environmental and health-and-safety claims. The claims related to the Mosquito Control Barrier Protection system, including statements about generalized health benefits, being 'natural' or 'all-natural,' effectiveness against mosquitoes and ticks, being 'worry-free,' and using 'EPA-approved' pesticides, all allegedly without proper substantiation. Mosquito Squad cooperated with the investigation and denied any wrongdoing. As part of the AOD, Mosquito Squad agreed not to publish such advertisements or representations, to alert franchisees making such claims, and to inform new Massachusetts franchisees and leadership about the AOD terms. Mosquito Squad and the franchisees collectively paid $13,000 to the Commonwealth of Massachusetts for investigation costs. The AOD will expire on September 10, 2034.

Renewal Conditions

To renew, Mosquito Squad franchisees must provide written notice of their desire to renew between six and twelve months before the agreement expires. They must be in full compliance with their current agreement and any other agreements with Mosquito Squad, its affiliates, or approved vendors, and have a good record of customer service and adherence to Brand Standards. Franchisees must also be on good terms with Mosquito Squad, including having no ongoing litigation. At Mosquito Squad's discretion, they may be required to sign the then-current franchise agreement offered to new franchisees, which could include different fees or a reconfigured territory, and pay a renewal fee of $5,000. All owners must sign a general release of claims against Mosquito Squad and its affiliates. The Key Person and any designated employees must successfully complete additional or refresher training. Franchisees must also demonstrate their right to maintain possession of the Approved Location for the entire renewal term and agree to remodel, refurbish, renovate, or re-equip the franchised business and its premises, including vehicles, to meet current Brand Standards. Finally, the computer system and vehicles used in the business must be upgraded to meet current Brand Standards.