How to Finance a Merry Maids Franchise: Fees, Territory and SBA
By Chris Cornella
A Merry Maids franchise loan finances a very different kind of business from a restaurant or a repair shop. There is no kitchen or service bay to build. Most of the money goes to the franchise fee, training, insurance, a small office setup and enough working capital to pay cleaning teams while the customer base grows, which changes how lenders size the loan and what they rely on for repayment.
This article walks through what Merry Maids says it costs to open a franchise, how its royalty and marketing contributions affect cash flow, what the SBA Franchise Directory listing means for borrowers, and how buyers of new territories and existing businesses typically finance the purchase.
US Professional Funding is not affiliated with, sponsored by or endorsed by Merry Maids; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, so always review the current Franchise Disclosure Document (FDD). Loan programs and terms vary by lender and borrower, every loan is subject to approval, and nothing here is legal, tax or investment advice.
Merry Maids Franchise Loan at a Glance
- Initial franchise fee: $55,000, paid in a lump sum when the franchise agreement is signed, according to the investment table on Merry Maids’ franchising website. The site notes the fee varies with the size of the territory.
- Estimated initial investment: $126,880 to $165,610, including 3 months of additional funds.
- Royalty: the franchisor’s site describes a royalty of 7% of gross sales paid weekly, and a 2023 article on the same site gives a range of 5% to 7%.
- Marketing: a 1.3% advertising contribution of gross sales and, per the 2023 article, a 0.7% local digital marketing fee, plus a $6,000 Online Marketing Fund deposit at signing.
- Liquid capital: a minimum of $50,000, according to the franchisor’s inquiry form.
- Net worth: $150,000, according to a 2023 article on the franchisor’s site.
- Discounts: 20% off the initial fee for military veterans, 10% for minority-owned and women-owned businesses, and 15% for existing franchisees adding a business.
- System size: more than 480 U.S. locations, according to the company’s franchising site.
- SBA Franchise Directory: listed as Merry Maids (code S1106), with a note about a franchisor purchase option on franchisee-owned real estate.
What Is Merry Maids?
Merry Maids was incorporated in 1979 in Omaha, Nebraska, and was acquired by its current parent company in 1988, according to the brand’s franchising site. A 2023 article on the franchisor’s site lists 1980 as the year franchising began. The franchise organization operates from Memphis, Tennessee, where new owners attend initial training, and the company describes more than 480 U.S. locations.
The concept is residential home cleaning delivered by trained teams. Owners do not clean houses themselves as a rule; they build a business that recruits, trains and schedules cleaning teams, sells recurring service to households in an exclusive territory, manages quality and handles billing. The franchisor provides proprietary cleaning systems, business operations software, marketing support and training.
Why lenders view Merry Maids the way they do. Lenders like recurring service revenue, and many home cleaning customers book weekly, biweekly or monthly visits. A long operating history and a recognized national name also help. On the other side, the business has few hard assets, so there is little collateral beyond vehicles and equipment, and success depends heavily on hiring and keeping reliable cleaners. That mix means a Merry Maids franchise loan rests mainly on cash flow projections, the owner’s management ability and personal financial strength.
Merry Maids Franchise Costs
Initial franchise fee. The investment table on Merry Maids’ franchising website lists a $55,000 initial fee, paid as a lump sum at signing. Another page on the site explains that the fee varies based on the number of qualified households in the territory chosen, so buyers should confirm the fee for their specific territory in the current FDD. Discounts of 20% for veterans, 10% for minority-owned and women-owned businesses and 15% for existing franchisees reduce the cash needed at signing.
Office space. Merry Maids is not a storefront business. The investment table allows $2,000 to $4,000 for real estate and improvements, which reflects a modest office where teams meet, supplies are stored and scheduling is handled.
Equipment and technology. The table lists $5,250 to $6,850 for office equipment and $1,700 to $4,400 for software and a tablet. Opening inventory and packing expenses, paid to the franchisor, run $6,500 to $8,000 and cover the initial cleaning supplies and equipment package.
Vehicles. Cleaning teams need transportation to reach customers’ homes. Vehicles do not appear as a separate line in the investment table, so buyers should plan for how teams will travel and whether vehicles will be purchased, leased or provided by employees, and budget accordingly.
Opening costs and working capital. Insurance, training travel, professional fees, the Online Marketing Fund deposit and 3 months of additional funds round out the budget. Additional funds of $38,000 to $43,000 are the largest single line after the franchise fee, which shows how much of this business’s start-up need is payroll and operating cash rather than build-out.
Total investment. The franchisor’s website totals the estimated initial investment at $126,880 to $165,610. The line items are:
- Initial fee: $55,000
- Travel and living expenses during training: $2,500 to $3,500
- Real estate and improvements: $2,000 to $4,000
- Software and tablet: $1,700 to $4,400
- Office equipment: $5,250 to $6,850
- Opening inventory and packing expenses: $6,500 to $8,000
- Insurance: $3,400 to $9,400
- Employee screening: $80 to $160
- Telephone answering service: $50 to $300
- Online Marketing Fund deposit: $6,000
- Miscellaneous opening costs: $1,400 to $10,000
- Professional fees: $5,000 to $15,000
- Additional funds (3 months): $38,000 to $43,000
Other pages on the franchisor’s site show lower investment figures, which may reflect different territory sizes or earlier disclosure documents. Rely on Item 7 of the current FDD for the figures that apply to your territory.
Ongoing Fees and How They Affect Your Loan
Royalty. Merry Maids’ franchising site describes a royalty of 7% of gross sales, paid weekly, and a 2023 article on the site lists a range of 5% to 7%. Confirm the rate and any tiers in Item 6 of the current FDD.
Advertising and digital marketing. The franchisor’s site describes a 1.3% contribution of gross sales to the brand’s advertising fund, and the 2023 article adds a 0.7% local digital marketing fee that funds digital marketing in the franchisee’s territory. A $6,000 Online Marketing Fund deposit is due at signing.
Software and other fees. The site mentions an upfront software registration fee and annual licensing renewal fees, and training for additional staff beyond the first person is offered for an extra fee.
How lenders factor these costs in. In a labor-intensive service business, payroll is the largest cost, and royalty and marketing fees come off the top of every sale. A lender sizing a Merry Maids franchise loan will want projections that apply the full royalty and marketing percentages to gross sales, include realistic wages, payroll taxes, workers’ compensation insurance, supplies and vehicle costs, and still show room for debt service. Because weekly royalty payments start with the first sales, the early months need to be carried by working capital rather than profits.
Franchisor Requirements for New Owners
- Liquid capital: the franchisor’s inquiry form sets a minimum of $50,000 in available liquid capital, and its investment page says buyers should have access to about $50,000 in cash for the initial investment.
- Net worth: a 2023 article on the franchisor’s site lists a $150,000 net worth requirement. Confirm the current figure with the franchisor.
- Training: owners complete pre-academy coursework followed by initial training in Memphis. The franchisor’s site describes a 10-day initial program that is included for one person.
- Experience: cleaning experience is not required by the materials we reviewed, but lenders value management, sales, scheduling and hiring experience because those skills drive a home services business.
The approval process. Candidates submit an inquiry, speak with the franchise development team, receive the FDD, complete a waiting period required by federal franchise rules, validate with existing owners and, if approved, sign the franchise agreement and select a territory. Arranging financing in parallel with these steps keeps the timeline on track.
Ways to Own a Merry Maids
A new territory. Most new owners open a start-up franchise in an available territory. Financing covers the franchise fee, supplies, equipment, insurance, marketing and working capital, and lenders underwrite on projections and the owner’s background. Our franchise start-up financing page explains how these loans are structured.
Buying an existing Merry Maids business. With more than 480 U.S. locations, existing businesses come up for sale as owners retire or move on. A resale gives a buyer recurring customers, trained teams and financial history that lenders can underwrite. The franchisor must approve the buyer and the transfer. Our guide to buying a franchise resale walks through the process, and our cleaning business acquisition financing page covers purchase loans.
Adding a territory or a second business. Existing franchisees who add a business receive a 15% discount on the initial fee, according to the franchisor. Lenders can rely on the existing business’s cash flow when underwriting the expansion.
Financing Options for a Merry Maids Franchise
SBA 7(a) loans. Because Merry Maids is on the SBA Franchise Directory, the SBA 7(a) loan program is often the primary route for start-ups and resales. A 7(a) loan can finance the franchise fee, equipment, supplies, working capital and goodwill on an acquisition, and it suits businesses with limited hard collateral.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived equipment. Because a Merry Maids office is usually a small leased space, 504 financing rarely applies unless an owner buys a building for the business.
Conventional term loans. Owners with strong credit, liquidity and an operating track record may qualify for a conventional business loan, particularly when buying a second business or refinancing.
Equipment and vehicle financing. Vehicles for cleaning teams, vacuums and other cleaning equipment, office equipment and tablets can be financed separately from the main Merry Maids franchise loan, which preserves cash for payroll. See our franchise equipment financing and leasing options.
Working capital and lines of credit. Payroll runs every week or two, while new customers take time to accumulate. Holiday seasons and spring cleaning can bring demand spikes that require hiring before revenue arrives. A line of credit helps manage those swings. Learn more about cleaning business working capital and lines of credit.
Franchisor financing. Merry Maids’ investment page states that other fees can be financed and refers buyers to its latest FDD. Read Item 10 to see exactly what is offered, and compare it with outside financing. Our article on franchisor financing versus SBA and bank loans explains how to weigh the options.
Seller financing on resales. In some resales, the seller carries part of the price on a note. A seller note is typically subordinate to the senior loan, and SBA rules can limit how it is structured, so terms should be agreed with the lender first. See our article on seller financing and earnouts in cleaning acquisitions.
SBA Loans for Merry Maids Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before they can make an SBA-guaranteed loan to one of its franchisees. A listing does not approve a borrower; it clears the franchise relationship for review.
Merry Maids’ listing. Merry Maids appears on the SBA Franchise Directory under code S1106. The listing carries one note: the franchisor may not enforce a purchase option on the real estate if the real estate is owned by the franchisee or its affiliate and is used as collateral for the SBA loan.
What that note means in plain English. Some franchise agreements give the franchisor an option to buy the franchisee’s business property in certain situations, such as when the franchise ends. If a Merry Maids owner, or a company the owner controls, owns the office building and pledges it as collateral for an SBA loan, the franchisor cannot enforce that purchase option against the property. This protects the lender’s collateral. Because most Merry Maids owners lease small offices, the note will not affect most borrowers, but it matters for owners who buy their building.
SBA program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change, which is well above the cost of a single Merry Maids territory.
Application tips. Before applying for an SBA-backed Merry Maids franchise loan, confirm the brand’s directory status with your lender, provide the full FDD and franchise agreement, document the source of your equity injection, and prepare a business plan built around hiring and customer acquisition. Our article on writing a franchise business plan for an SBA loan shows what lenders expect.
How Lenders Evaluate a Merry Maids Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and typically require a personal guarantee from each significant owner.
Net worth and liquidity. With little hard collateral, lenders pay close attention to the borrower’s cash. Meeting the franchisor’s liquidity minimum is the starting point; reserves after closing show the lender the business can survive a slow hiring month.
Industry and management experience. Experience managing hourly teams, scheduling, customer service or sales strengthens a request. Lenders want to know how the owner will recruit cleaners, keep turnover down and maintain quality across many homes each week.
Business plan and projections. Strong projections show the number of households in the territory, a customer acquisition plan, the mix of recurring and one-time cleanings, team size, wages, insurance, vehicle costs, supplies, royalty and marketing fees, and the month the business reaches break-even.
The FDD and franchise agreement. Lenders look at Items 5, 6, 7, 10, 12, 17 and 19, the term and renewal rights, and transfer conditions. A 2023 article on the franchisor’s site lists a 5-year agreement term, so check the current FDD for the term and renewal provisions, because a short term with renewal conditions affects how long a lender is willing to amortize a loan. Review Item 19 to see what financial performance representations are included.
Territory. The size and demographics of the territory matter because the fee and the revenue potential both depend on the number of qualified households. Lenders may ask how the territory was defined and how many households it contains.
Historical financials for a resale. Lenders review several years of profit and loss statements, tax returns, customer lists showing recurring accounts, customer retention and payroll records.
Teams, Vehicles and Equipment
A Merry Maids business runs on people and the tools they carry. Each team needs cleaning supplies and equipment, a way to reach customers’ homes and, in many cases, a tablet or phone for scheduling and job details. The office needs computers, a phone system or answering service and storage for supplies.
Vehicles. Team vehicles are often the largest equipment purchase after opening. Financing or leasing vehicles separately keeps the main loan focused on start-up costs and working capital, and vehicles add collateral that can strengthen a request.
Insurance. Home cleaning businesses carry general liability, workers’ compensation, commercial auto and often bonding. The investment table allows $3,400 to $9,400 for insurance at opening, and premiums grow with payroll and vehicle count. Lenders will ask for proof of coverage before closing.
Multi-Unit Growth and Expansion
Merry Maids encourages growth by offering existing franchisees a 15% discount on the initial fee for an additional business. Growth can also come from buying a neighboring franchisee’s business.
Financing a second territory. Once the first business has operating history, lenders can underwrite combined cash flow. Owners often finance each new territory or acquisition separately while sharing office staff, scheduling and management across locations. Consolidated financial statements become important as the group grows.
Real-World Scenarios
A corporate manager opening a first territory. A former operations manager with no cleaning experience opens a new territory. She uses an SBA 7(a) loan for the franchise fee, supplies, equipment and working capital, contributes personal cash and leases two vehicles for her first teams.
A buyer acquiring a retiring owner’s business. A buyer purchases an established Merry Maids business with recurring customers and trained teams. The lender underwrites from the business’s tax returns and customer records, and the seller carries a small subordinated note.
An existing owner adding a territory. An owner with a stable business adds a neighboring territory using the existing-franchisee discount. A conventional term loan covers the fee and launch costs, and a line of credit supports hiring.
A veteran using the discount. A military veteran opens a territory with the 20% fee discount, reducing the amount financed and leaving more cash for working capital.
Common Mistakes to Avoid
- Underestimating payroll and the time needed to build recurring customers
- Treating the royalty and marketing fees as profit-based instead of gross-sales-based
- Leaving vehicles, insurance growth and employee turnover out of the budget
- Assuming lower investment figures from older pages apply to your territory
- Borrowing the liquid capital the franchisor expects you to bring
- Ignoring the agreement term when choosing a loan amortization
- Buying a resale without verifying recurring customers and team retention
For more financing pitfalls in the cleaning industry, read the restoration and cleaning company loan mistakes that cost owners the most.
Next Steps to Finance Your Merry Maids Franchise
Step 1: Request and review the FDD. Read Items 5, 6, 7, 10, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 2: Confirm your territory. Learn the number of qualified households, the fee for that territory and any discounts you qualify for.
Step 3: Check your finances. Make sure you meet the liquid capital and net worth requirements without borrowing your equity.
Step 4: Estimate payments. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Build your plan. Prepare projections around customer acquisition, hiring, wages, vehicles, insurance, royalty and marketing fees.
Step 6: Apply for financing. Submit your loan request with tax returns, a personal financial statement, a resume, the FDD and your business plan.
Step 7: Close, train and launch. Coordinate closing with the franchise agreement, complete training in Memphis, hire your first teams and keep working capital in reserve.
Merry Maids Franchise Loan FAQs
How much does it cost to open a Merry Maids franchise?
The investment table on Merry Maids’ franchising website estimates a total initial investment of $126,880 to $165,610, including the $55,000 initial fee and 3 months of additional funds. Check Item 7 of the current FDD for your territory.
What is the Merry Maids franchise fee?
The franchisor’s investment table lists a $55,000 initial fee paid at signing. The site notes the fee varies with territory size, and discounts are available for veterans, minority-owned and women-owned businesses and existing franchisees.
What royalty does Merry Maids charge?
The franchisor’s site describes a 7% royalty on gross sales, paid weekly, and a 2023 article on the site lists a range of 5% to 7%. A 1.3% advertising contribution also applies.
How much liquid capital do I need?
The franchisor’s inquiry form lists a minimum of $50,000 in liquid capital, and a 2023 article on its site lists a $150,000 net worth requirement.
Can I get an SBA loan for a Merry Maids franchise?
Merry Maids is listed on the SBA Franchise Directory under code S1106, so SBA financing is available to qualified borrowers, subject to lender approval.
What does the SBA directory note for Merry Maids mean?
If the franchisee or its affiliate owns the business real estate and pledges it for an SBA loan, the franchisor may not enforce a purchase option on that property. Most owners lease offices, so it rarely applies.
Does Merry Maids offer financing?
The franchisor’s site says other fees can be financed and points to its latest FDD. Review Item 10 for the details.
Do I need cleaning experience?
The materials we reviewed do not require it. Lenders value management, hiring and sales experience, and the franchisor provides initial training.
Can I finance vehicles and equipment separately?
Yes. Team vehicles, cleaning equipment and office technology can be financed or leased separately from the main loan.
Can I buy an existing Merry Maids business?
Yes, with franchisor approval. Lenders underwrite resales using historical financial statements, tax returns and customer records.
How long is the Merry Maids franchise term?
A 2023 article on the franchisor’s site lists a 5-year term. Check Item 17 of the current FDD for the term and renewal conditions.
Is there a discount for veterans?
Yes. The franchisor offers 20% off the initial franchise fee for military veterans.
Can I own more than one territory?
Yes. Existing franchisees receive a 15% discount on the initial fee when buying an additional business, according to the franchisor.
Final Thoughts
Financing a Merry Maids franchise is mostly about financing people and time: the payroll, insurance and marketing needed to build a base of recurring customers. Buyers who approach a Merry Maids franchise loan with a clear view of the gross-sales fees, budget realistically for teams and vehicles, check the term and keep reserves after closing put themselves in a strong position with lenders.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and cleaning and restoration business financing solutions.
