The Maids FDD Item 6 is the section of the Franchise Disclosure Document that lists every ongoing fee a franchisee will pay after the initial franchise fee of $12,500 or more. For prospective residential cleaning franchisees, this is where the true cost of operating under The Maids brand becomes clear, and where many first-time buyers realize that the low initial investment of $74,780 to $168,300 does not necessarily mean low ongoing costs. At Lopes Law LLC, we routinely review The Maids FDDs for prospective franchisees, and the conversations we have about Item 6 are among the most important in the entire engagement.

This guide breaks down exactly what The Maids discloses in Item 6, explains why the sliding-scale royalty and labor-intensive business model create unique financial challenges, and walks through the specific line items every buyer needs to understand before committing capital.

What Is FDD Item 6 and Why Does It Matter for The Maids?

Item 6 of any Franchise Disclosure Document is titled “Other Fees.” It is required by the FTC Franchise Rule (16 C.F.R. Part 436) and must disclose every recurring fee, contribution, or payment obligation the franchisee will owe during the term of the franchise agreement. Item 5 covers the initial fees. Item 6 covers everything that comes after.

For The Maids specifically, Item 6 is critical because residential cleaning is a labor-intensive, high-turnover business where the margin between revenue and operating costs is already tight. Every percentage point of royalty and every additional fee directly reduces the margin available to cover labor, vehicles, supplies, and owner income. Understanding the complete fee picture is not optional. It is the difference between building a profitable cleaning business and struggling to break even while your employees clean other people’s homes.

The franchise industry has seen what happens when fee structures are not fully understood. Dickey’s Barbecue Pit accumulated 27 SBA loan defaults, with many franchisees citing unexpected fee burdens. Patrice & Associates reported a 31% failure rate among its franchisees. The Maids’ low initial investment makes it accessible, but accessibility should not be confused with profitability.

What Fees Does The Maids FDD Item 6 Disclose?

The Maids Item 6 discloses a comprehensive fee schedule that covers every ongoing financial obligation. Here is a breakdown of the major categories:

Fee Category	Typical Amount	When Paid
Royalty (Sliding Scale)	3.9% to 6.9% of gross sales	Monthly
National Advertising Fund	2% of gross sales	Monthly
Technology / Software Fees	Varies; CRM, scheduling, billing systems	Monthly
Vehicle Requirements	Varies; branded vehicles mandatory	As required
Cleaning Supplies / Equipment	Varies; from approved vendors	Ongoing
Insurance	Required minimums (varies by state)	Annually
Training	At franchisee’s expense	Ongoing
Transfer Fee	As disclosed in FDD	Upon transfer
Renewal Fee	As disclosed in FDD	Upon renewal
Late Payment Penalties	As disclosed in FDD	As incurred

The Sliding-Scale Royalty: 3.9% to 6.9% of Gross Sales

The Maids uses a sliding-scale royalty structure where the percentage paid decreases as the franchisee’s gross sales increase. New or lower-revenue franchisees pay at or near the 6.9% rate, while higher-revenue operators pay closer to 3.9%. This structure rewards growth but penalizes franchisees during the most financially vulnerable period of their business: the first two to three years when revenue is typically lowest and operating costs are highest relative to income.

For a new franchise generating $300,000 in annual gross sales, the royalty at 6.9% equals approximately $20,700 per year. For an established franchise generating $700,000, the royalty at approximately 4.5% equals approximately $31,500. The absolute dollar amount increases with revenue, but the percentage impact on margins is more favorable at higher volumes.

National Advertising: 2% of Gross Sales

The Maids requires a 2% of gross sales contribution to the national advertising fund. This rate is lower than many franchise systems, which commonly charge 3% to 4%. However, franchisees are also expected to invest in local marketing beyond the 2% national contribution. The combined marketing expenditure, national plus local, can represent 4% to 6% of gross sales depending on the market and the franchisee’s growth stage.

Why Is Labor Cost the Fee Most The Maids Franchisees Underestimate?

While labor cost is not technically a “fee” disclosed in Item 6, it interacts directly with the Item 6 fee structure to determine profitability. The Maids operates a team-based cleaning model where employees (not independent contractors) work in teams to clean residential properties. This means the franchisee is responsible for payroll, payroll taxes, workers’ compensation insurance, benefits, training, and managing employee turnover.

In the residential cleaning industry, labor costs typically represent 45% to 55% of gross revenue. When you add the 6.9% royalty (for new franchisees), 2% advertising, and approximately 3% to 5% in technology, vehicle, and supply costs, the total fee-plus-labor burden reaches 56% to 68% of gross revenue. The remaining 32% to 44% must cover office rent, utilities, administrative costs, marketing, insurance, and owner income.

For a franchise generating $400,000 in gross revenue, the math works like this:

Expense Category	Percentage	Annual Cost
Labor (teams + payroll taxes)	50%	$200,000
Royalty	~6%	$24,000
Advertising (national + local)	~4%	$16,000
Vehicles / Fuel	~5%	$20,000
Supplies / Equipment	~3%	$12,000
Insurance	~3%	$12,000
Technology / Office	~4%	$16,000
Remaining for Owner	~25%	$100,000

That $100,000 figure looks reasonable until you account for the reality that a $400,000 revenue level may take two to three years to achieve. During years one and two, revenue may be $150,000 to $250,000, and the owner income drops proportionally, often to $20,000 to $40,000, which may be below what the franchisee needs to cover personal expenses while building the business.

How Does The Maids’ Team-Based Model Affect Fee Impact?

The Maids’ team-based cleaning model, where W-2 employees work in supervised teams rather than as individual independent contractors, is a distinguishing feature of the franchise. This model has quality and liability advantages, but it also has significant cost implications that interact with the Item 6 fee structure.

Because cleaning teams are employees, the franchisee bears the full cost of employment: hourly wages, payroll taxes (FICA, unemployment insurance), workers’ compensation insurance, and any benefits offered. In states with higher minimum wages, mandated sick leave, or other employment requirements, these costs are even higher.

The team model also means that the franchisee must maintain enough staff to cover scheduled cleanings even when employees call out sick, quit, or are terminated. Employee turnover in the residential cleaning industry is notoriously high, often exceeding 100% annually. Every turnover event costs the franchisee in recruiting, training, and lost productivity, but none of these costs reduce the royalty or advertising obligations. The fees are calculated on gross revenue regardless of the franchisee’s labor efficiency.

What Should Prospective The Maids Franchisees Look for in Item 6?

• The royalty schedule at your projected revenue: Model your royalty at years one, two, and three revenue projections. Understand what rate you will pay during the startup phase when margins are tightest.
• Total marketing obligation: Add the 2% national fund to the local marketing investment needed to build your customer base. Model the total marketing spend as a percentage of revenue.
• Technology fee details: Identify all mandatory software and technology platforms, their costs, and whether fees are fixed or variable.
• Vehicle requirements: Determine how many branded vehicles are required, what the branding costs are, and whether you can lease or must purchase.
• Insurance minimums: Confirm the required coverages, especially general liability and workers’ compensation. These can be expensive in the cleaning industry due to the frequency of on-the-job injuries and property damage claims.
• Supply sourcing flexibility: Determine whether cleaning supplies must come from The Maids’ approved vendors or whether you have flexibility to source independently.

For franchisees already experiencing fee-related challenges, our franchise exit audit can evaluate your options.

Why Legal Review of The Maids Item 6 Is Essential

The fees in Item 6 represent contractual obligations for the full franchise term. In a labor-intensive business with tight margins, understanding the complete fee picture before signing is the difference between building a sustainable business and discovering too late that the margins do not support the investment.

At Lopes Law LLC, our flat-fee FDD validation review is $3,000 and covers all 23 items, with particular attention to how the sliding-scale royalty, advertising obligations, and operational costs interact with the labor-intensive cleaning model. For more about our review process, see what to expect from an FDD review.

Frequently Asked Questions About The Maids FDD Item 6

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Last updated: March 11, 2026