Merry Maids Franchise

[laktoqnf]

Hello All....

I am looking into buying an existing Merry Maids franchise that has been operating for 14 years. I have not gone to due deligence yet or spoken with any current franchisee's but have seen the basic profit and loss statements so far and spoke with the broker. What I see of the numbers they seem good. I would be offering so far, 2 times net. Does this sound reasonable for this industry? Does anyone have any first hand knowledge of Merry Maids or the in/outs of the industry? Thanks in advance to all that reply!!!

[jukirusk]

Merry Maids franchises are very profitable businesses. Tome 2 times the net sounds pretty good!!

I don't have any first hand knowledge with the company but they seem to be a first class operation.
I have used the service and was very pleased with the attitude of the employees.
Something good must be going on there.

[bennysumardi]

Chris,

The home cleaning industry is very popular now-a-days. I don't think that any given franchise owns the industry. Most my clients look at purchasing a new franchise, however, when it comes to resales...2-3 x's net is usually a good figure.

You want to make sure that your employees will stay with you during the transition of franchisees. Clarify your training and who will perform it. There will also be a transfer fee that you will incur. Make sure you get that cost.

Enjoy the due diligence process. I provide a 4 page list of questions to ask the franchisees. Contact me and let me know if you would like to use it. Either way...try to find other franchisees that purchased resales. Keep in mind that most franchisees went through the same process you are going through. So don't hold back and ask every question you can think of.

If you want to compare Merry Maids to any other franchises out there...let me know. I have about 220 franchises in my portfolio, with many in the cleaning industry. I also have some resale opportunities. I can give you a good feeling of the pros and cons of each franchise (and every franchise has their cons). You are off to a great start. Keep up the great work.

[jukirusk]

[quote=omarborrego] I have about 220 franchises in my portfolio, with many in the cleaning industry. QUOTE]
Are you a business alliance licensee??

[worldforsale]

Originally Posted by chris_H

Hello All....

I am looking into buying an existing Merry Maids franchise that has been operating for 14 years. I have not gone to due deligence yet or spoken with any current franchisee's but have seen the basic profit and loss statements so far and spoke with the broker. What I see of the numbers they seem good. I would be offering so far, 2 times net. Does this sound reasonable for this industry? Does anyone have any first hand knowledge of Merry Maids or the in/outs of the industry? Thanks in advance to all that reply!!!

What is the net profit according to the P&L you've been given? You should always base buying offers on the actual tax return, as they are less likely to be doctored. P&L statements can be made to show anything.

Also, when setting a purchase price based on the annual net profit, always take the average of the net profit from the last 3 years. This will ensure that you don't pay an overinflated price due to the business having a "best year ever" performance. The best year ever is often followed by a not-so-best year ever.

Best of luck to you!
gm