Two Maids FDD Item 19 is the section of the Franchise Disclosure Document where the franchisor may provide financial performance representations, commonly known as earnings claims. For prospective franchisees evaluating a Two Maids investment of $96,100 to $181,300, Item 19 is often the most studied section of the entire FDD. At Lopes Law LLC, we emphasize that Item 19 data, when provided, must be analyzed carefully because the numbers that appear impressive at first glance may tell a very different story when examined alongside the fee obligations in Item 6 and the realities of operating a residential cleaning business.

This guide explains what Item 19 does and does not tell you, how to interpret the financial data Two Maids may disclose, and the critical analysis steps that separate informed franchise buyers from those who overestimate their likely returns.

What Is FDD Item 19 and Does Two Maids Provide Financial Performance Data?

Item 19 of any Franchise Disclosure Document is titled “Financial Performance Representations.” Under the FTC Franchise Rule (16 C.F.R. Part 436), franchisors are not required to include Item 19 data. However, if a franchisor chooses to make any financial performance representations, those representations must appear in Item 19 and must have a reasonable basis and written substantiation.

Whether Two Maids includes Item 19 data depends on the current year’s FDD. Franchisors update their FDD annually, and the decision to include or exclude Item 19 data can change from year to year. Some years, a franchisor may provide detailed revenue data. Other years, the same franchisor may choose not to include any financial performance information.

If Two Maids does not include Item 19 data, the franchisor and its representatives are prohibited from making any financial performance representations whatsoever, whether verbally, in writing, or during sales presentations. This prohibition is absolute. If a Two Maids salesperson tells you “our average franchisee earns $X” without that figure appearing in Item 19, that is a violation of the Franchise Rule. Document any such claims and report them to your franchise attorney.

This context matters because franchise industry data shows the consequences of poor investment decisions. Dickey’s Barbecue Pit had 27 SBA loan defaults, and Patrice & Associates reported a 31% failure rate. Unreliable earnings expectations contribute to these outcomes, which is why rigorous Item 19 analysis is essential.

What Financial Metrics Might Two Maids Disclose in Item 19?

When franchisors provide Item 19 data, they choose which metrics to disclose. Common financial performance representations include:

• Average gross sales per location: The total revenue divided by the number of locations included in the data set. This is the most common metric but also the most potentially misleading.
• Median gross sales: The midpoint value where half of locations performed above and half below. Medians are generally more useful than averages because they are not skewed by outliers.
• Revenue ranges by quartile: Breaking locations into performance tiers (top 25%, bottom 25%, etc.) provides a more nuanced picture of what different levels of performance look like.
• Gross profit or cost of goods sold: Some franchisors disclose expenses as well as revenue, which helps prospective franchisees model net income.
• Revenue by years in operation: Segmenting data by how long locations have been open helps set realistic expectations for the ramp-up period.

How Should You Analyze Two Maids Item 19 Data?

If Two Maids provides Item 19 data, here are the critical analysis steps every prospective franchisee should follow:

Step 1: Look at Medians, Not Averages

In any franchise system, a small number of high-performing locations can pull the average significantly upward. If the average gross sales are $500,000 but the median is $350,000, that means most locations earn closer to $350,000. The average is inflated by top performers. Always ask: what percentage of locations actually achieved the stated average? If only 30% of locations hit the average, the average is not a useful projection for your business.

Step 2: Understand What Is Included and Excluded

The methodology behind Item 19 data matters as much as the numbers themselves. Key questions include:

• Are all locations included, or only locations that have been open for a minimum period?
• Are newly opened locations excluded, which would inflate the averages?
• Are company-owned locations included alongside franchise locations?
• What time period does the data cover?
• Are locations that closed during the period included?

Step 3: Subtract All Costs to Estimate Net Income

Item 19 typically shows revenue, not profit. To estimate what you will actually earn, you need to subtract all costs:

Cost Category	Typical Range (% of Revenue)
Royalty + Advertising (Item 6)	8% (6% + 2%)
Labor (cleaners, managers)	40% – 55%
Cleaning supplies and materials	3% – 6%
Vehicle costs (gas, insurance, maintenance)	4% – 8%
Technology and software fees	1% – 2%
Insurance (GL, WC, bonding)	2% – 4%
Office and administrative costs	3% – 5%
Local marketing (beyond ad fund)	2% – 5%

When you add these costs together, the total operating expenses for a residential cleaning franchise typically range from 63% to 85% of revenue. This means the owner’s income, before taxes and debt service, typically falls between 15% and 37% of gross revenue. On a location generating $400,000 in annual revenue, that translates to potential owner income of $60,000 to $148,000, a wide range that depends heavily on how efficiently the operation is managed.

How Does the Pay for Performance Model Affect Financial Projections?

Two Maids’ unique Pay for Performance model adds a layer of complexity to financial projections that does not exist in traditional cleaning franchises. Under this model, customer ratings drive employee compensation through tips. This means your labor costs are partially variable and tied to customer satisfaction.

When projecting finances from Item 19 data, you need to model labor under multiple scenarios:

• High satisfaction scenario: If customer ratings are consistently high, tips increase, which raises your total labor cost. The trade-off is potentially higher customer retention and referral rates, which can grow revenue.
• Average satisfaction scenario: Moderate ratings produce moderate tips and standard labor costs. This is the most likely baseline for projections.
• Low satisfaction scenario: Lower ratings reduce tips but may also reduce revenue through lower customer retention. Both sides of the equation move unfavorably.

The Item 19 data, if provided, may show revenue figures that do not distinguish between locations with high and low customer satisfaction ratings. Two locations with identical revenue could have very different profit margins based on the Pay for Performance dynamics. This is why a financial projection based solely on Item 19 revenue data is incomplete without labor cost modeling.

What Should You Do If Two Maids Does Not Provide Item 19 Data?

If Two Maids does not include financial performance representations in Item 19, you have several options for gathering financial information:

• Contact existing franchisees: Item 20 of the FDD lists the contact information for all current and recently departed franchisees. You have the right to contact them and ask about their financial experience. This process, known as franchise validation, is one of the most important steps in your due diligence.
• Request audited financial statements: If you are purchasing an existing Two Maids location from a current franchisee, you can request the seller’s financial statements as part of the transaction.
• Build bottom-up projections: Using industry benchmarks for residential cleaning services, local market data, and the cost structure disclosed in Item 6, you can build a financial model from the ground up. This approach is more conservative but often more realistic than top-down estimates based on system averages.
• Engage a franchise attorney: A franchise attorney experienced in home services franchises can help you develop financial projections using multiple data sources and stress-test those projections against realistic scenarios.

How Does Two Maids Item 19 Compare to Other Cleaning Franchise Disclosures?

Financial performance representation practices vary across the residential cleaning franchise industry. Some cleaning franchise brands provide detailed Item 19 data including revenue ranges, cost breakdowns, and segmented performance data. Others provide minimal data or no Item 19 disclosure at all.

When comparing Two Maids against other cleaning franchise opportunities, the presence or absence of Item 19 data is itself an important data point. Franchisors that provide transparent, detailed financial performance data demonstrate confidence in their system’s economics. Franchisors that choose not to disclose Item 19 data may have valid reasons (the data is complex, varies widely, or does not present favorably), but the absence of data makes your due diligence harder.

Regardless of what Two Maids discloses, the best practice is to build your own financial model using multiple sources. Item 19 data, when available, is a starting point, not a conclusion. Your model should incorporate local market conditions, your specific territory demographics, realistic labor cost assumptions, and the full fee structure from Item 6.

Why Legal Review of Item 19 Is Critical Before Investing

Item 19 is where dreams meet reality. The financial performance data, whether robust or minimal, forms the basis for your investment decision. A franchise attorney can help you evaluate the methodology behind the disclosed figures, identify what the data does not show, assess whether the performance data is consistent with the fee obligations and market conditions, and develop realistic financial projections that account for your specific circumstances.

At Lopes Law LLC, we review Item 19 data in the context of the entire FDD. Revenue figures mean nothing without understanding the fees (Item 6), the sourcing costs (Item 8), the territory limitations (Item 12), and the renewal and termination risks (Item 17). Our $3,000 flat-fee FDD validation review covers all 23 items and produces a comprehensive assessment that helps you make an informed decision. For franchisees already in the system who are reconsidering their position, our franchise exit audit provides similar rigorous analysis.

Frequently Asked Questions About Two Maids FDD Item 19

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Last updated: March 11, 2026