Two Maids FDD Item 6 is the section of the Franchise Disclosure Document that details every ongoing fee a franchisee will pay after the initial $45,900 franchise fee. For prospective Two Maids franchisees evaluating this residential cleaning franchise, Item 6 is where the true recurring cost of ownership comes into focus. At Lopes Law LLC, we regularly review FDDs for home services franchises, and the Two Maids fee structure warrants careful attention because of how the brand’s unique “Pay for Performance” model interacts with the standard ongoing obligations.

This guide breaks down every fee disclosed in Two Maids Item 6, explains how each obligation affects your bottom line, and identifies the specific line items that prospective franchisees should analyze before committing to a franchise agreement. Two Maids, now part of Home Franchise Concepts (a subsidiary of JM Family Enterprises), has grown to over 100 locations, and the corporate backing introduces both stability and a more structured fee environment.

What Is FDD Item 6 and Why Does It Matter for Two 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 Two Maids specifically, Item 6 is important because the residential cleaning industry operates on relatively thin margins compared to food service or retail franchises. When your total investment ranges from $96,100 to $181,300 and your average ticket per cleaning is modest, every percentage point of ongoing fees directly compresses your operating margin. Understanding exactly what you owe, and when you owe it, is the difference between a profitable operation and one that struggles to generate meaningful owner income.

This is especially relevant given the broader franchise industry landscape. According to SBA data, Dickey’s Barbecue Pit had 27 SBA loan defaults, and Patrice & Associates reported a 31% failure rate among franchisees. These figures underscore why careful fee analysis before signing any franchise agreement is not optional; it is a necessary step in responsible due diligence.

What Fees Does Two Maids FDD Item 6 Disclose?

Two Maids Item 6 includes several categories of ongoing fees. Here is a breakdown of the major obligations disclosed:

Fee Category	Typical Amount	When Paid
Royalty Fee	6% of gross sales	Monthly
Advertising Fund	2% of gross sales	Monthly
Technology / Software Fees	Varies; covers scheduling, CRM, booking platforms	Monthly
Insurance	Required minimums (general liability, workers’ comp, bonding)	Annually / As required
Transfer Fee	As disclosed in FDD	Upon transfer of franchise
Renewal Fee	As disclosed in FDD	Upon renewal of franchise agreement
Additional Training	At franchisee’s expense	As required
Late Payment Penalties	As disclosed in FDD	As incurred

Each of these line items deserves detailed analysis. Let us walk through the most consequential ones for a Two Maids franchisee.

The Royalty Fee: 6% of Gross Sales

The royalty fee is 6% of gross sales, paid monthly. This is at the higher end of the spectrum for home services franchises, where royalties typically range from 4% to 7%. For a Two Maids location generating $400,000 in annual gross sales, this equals $24,000 per year paid directly to the franchisor. This fee is calculated on gross sales, not net profit. Whether your location earns a strong margin or has a difficult month, the royalty is owed on every dollar of revenue.

With the acquisition by Home Franchise Concepts, Two Maids franchisees benefit from corporate infrastructure and brand support, but the 6% royalty reflects that investment. Prospective buyers should model this fee against realistic revenue projections for their specific market, not against system-wide averages that may not reflect local conditions.

Advertising Fund Contribution: 2% of Gross Sales

In addition to the royalty, Two Maids charges a 2% advertising fund contribution on gross sales. For the same $400,000 location, this adds $8,000 per year in fees. The advertising fund is managed by the franchisor and is used for national and regional marketing campaigns, digital advertising, brand development, and marketing collateral.

The combined royalty and advertising total of 8% of gross sales means that for every $100 your Two Maids franchise earns, $8 goes directly to the franchisor before you cover any operating expenses. This is important context for understanding what your actual take-home revenue will be.

How Does the Pay for Performance Model Interact with Item 6 Fees?

Two Maids differentiates itself in the residential cleaning market through its “Pay for Performance” model. Under this system, customers rate the quality of their cleaning service, and cleaning technicians’ tips are tied to those ratings. Higher customer satisfaction leads to higher tips for the cleaning team.

From a fee perspective, this model creates an important dynamic. The royalty and advertising fees are calculated on gross sales, which includes the base cleaning price. The performance-based tipping model affects your labor costs and employee satisfaction, but it does not reduce your fee obligations to the franchisor. In other words, your team’s compensation fluctuates with customer satisfaction, but your 6% royalty and 2% advertising contribution remain fixed percentages of revenue.

This is a critical distinction. In months where customer ratings are high and tips increase, your labor costs go up while your franchisor fees remain the same. In months where ratings dip, your labor costs may decrease, but your revenue may also be affected if customer retention suffers. Modeling this interaction is essential for understanding your true margins.

What Are the Technology and Software Fee Obligations?

Two Maids requires franchisees to use designated technology platforms for scheduling, customer relationship management, online booking, and internal communications. These technology fees cover the software systems that run the day-to-day operations of the franchise.

For a residential cleaning franchise, technology is particularly important. Customers expect online booking, real-time scheduling updates, and digital payment processing. The franchisor’s technology stack provides these capabilities, but the cost is borne by the franchisee. Technology fees may be billed monthly or annually, and they are subject to change as the franchisor introduces new platforms or upgrades existing systems.

Prospective franchisees should ask several specific questions about technology fees before signing:

• Are technology fees fixed or variable? A fixed monthly fee is predictable and easier to budget. Variable fees that increase with transaction volume or system upgrades create uncertainty.
• What happens when the franchisor changes platforms? If Two Maids switches scheduling software or CRM systems, does the franchisee bear the transition cost?
• Are there third-party software requirements? Beyond the franchisor’s proprietary systems, are franchisees required to purchase additional software licenses?
• How have technology fees changed over the past three years? Speaking with existing franchisees about their technology cost trajectory provides valuable context.

Insurance Requirements

Two Maids requires franchisees to maintain several types of insurance, including general liability insurance, workers’ compensation insurance, and bonding. For a residential cleaning franchise where employees enter customers’ homes, these requirements are both legally necessary and operationally essential.

Insurance costs vary significantly by state, the number of employees, claims history, and the specific coverage limits required by the franchise agreement. In the cleaning industry, workers’ compensation rates can be meaningful because the work involves physical labor, chemical handling, and driving between job sites. Prospective franchisees should obtain insurance quotes for their specific market before finalizing their financial projections.

How Do Item 6 Fees Add Up for a Typical Two Maids Location?

To illustrate the real financial impact of Item 6 fees, let us model a Two Maids location generating $400,000 in annual gross sales. This provides a realistic basis for understanding the total fee obligation.

Fee	Calculation	Annual Cost
Royalty Fee	6% of $400,000	$24,000
Advertising Fund	2% of $400,000	$8,000
Technology / Software	Estimated monthly charges	$2,400 – $4,800
Insurance (GL, WC, Bonding)	Varies by state and staffing	$8,000 – $15,000
Total Item 6 Fees		$42,400 – $51,800

That is approximately 10.6% to 13.0% of gross sales going to franchisor-related fees and required insurance before the franchisee pays for labor, cleaning supplies, vehicle costs, or any other operating expense. For a service business where labor typically represents 40% to 55% of revenue and supplies and transportation add another 10% to 15%, the available margin for owner income is tighter than many prospective buyers anticipate.

This is why at Lopes Law LLC we emphasize modeling total cost of ownership rather than focusing solely on the royalty rate. The 6% royalty is only the starting point. When combined with advertising, technology, and insurance, the true fee burden is substantially higher.

What Role Does Home Franchise Concepts Play in the Fee Structure?

Two Maids was acquired by Home Franchise Concepts, which is part of JM Family Enterprises. This corporate backing is relevant to the fee discussion for several reasons.

First, larger corporate parents often bring more structured and standardized fee schedules. The advertising fund, for example, may be managed with greater resources and broader reach than what a smaller, independently owned franchisor could provide. The trade-off is that the fee structure is less likely to be negotiable when backed by a large corporation.

Second, corporate parents may introduce shared technology platforms across their portfolio of brands. If Home Franchise Concepts deploys a company-wide CRM, scheduling, or payment system, Two Maids franchisees may be required to adopt it. This can provide operational benefits, but the franchisee bears the cost. Understanding whether technology mandates are coming in the near term is an important part of your due diligence.

Third, franchise systems backed by large holding companies tend to enforce compliance more rigorously. Fee collection, reporting requirements, and adherence to brand standards are typically more systematized. This is not inherently negative, but it means prospective franchisees should expect strict enforcement of every obligation disclosed in Item 6.

What Transfer and Renewal Fees Should Two Maids Franchisees Expect?

Two Maids Item 6 discloses fees associated with transferring and renewing the franchise. These fees become relevant at two critical junctures: when you want to sell the franchise to a new owner (transfer), and when your initial franchise term expires and you want to continue operating (renewal).

Transfer fees compensate the franchisor for the administrative cost of vetting and approving a new franchisee. Renewal fees are charged when the franchisee signs a new franchise agreement at the end of the initial term. Both fees are disclosed in Item 6 and should be factored into your long-term financial model.

For prospective buyers planning an eventual exit, the transfer provisions are especially important. If the transfer fee is substantial, it reduces the net proceeds from a sale. Additionally, the franchisor typically must approve the buyer, which means the transfer is not entirely within your control. Understanding these provisions upfront helps you plan a realistic exit strategy. For more on exit planning, see our franchise exit audit service.

How Does Two Maids Item 6 Compare to Other Cleaning Franchises?

The residential cleaning franchise industry includes several well-known brands, and comparing their Item 6 fee structures provides useful context for evaluating Two Maids.

Many cleaning franchises charge royalties in the range of 4% to 7% of gross sales, with advertising contributions of 1% to 3%. Two Maids at 6% royalty and 2% advertising (8% total) is at the higher end of the combined fee range. However, the total fee burden must be evaluated against the support provided. Two Maids, backed by Home Franchise Concepts, offers brand recognition, operational systems, and marketing infrastructure that smaller cleaning franchises may not provide.

The Pay for Performance model is unique to Two Maids and is not directly comparable to competitors’ models. While it may drive customer satisfaction and differentiate the brand in the marketplace, it does not reduce the franchisee’s fee obligations. Prospective buyers should evaluate whether the brand premium and unique positioning justify the higher fee structure compared to lower-cost alternatives.

Why Legal Review of Two Maids Item 6 Is Essential

The fees disclosed in Two Maids Item 6 represent contractual obligations that will continue for the full term of the franchise agreement. In a residential cleaning franchise where margins are already compressed by labor costs, supplies, and transportation, every percentage point matters.

A franchise attorney can help you model the total fee burden against realistic revenue projections for your specific market, evaluate how the Pay for Performance model affects your overall profitability alongside the fixed fee obligations, review transfer and renewal provisions to understand your long-term options, and compare the total cost structure against other cleaning franchise opportunities.

At Lopes Law LLC, we review home services FDDs regularly. Our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD, with particular attention to the fee structure in Item 6 and how it interacts with the specific economics of a residential cleaning operation.

Frequently Asked Questions About Two Maids FDD Item 6

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Last updated: March 11, 2026