About Mosquito Joe Franchise
Mosquito Joe is a leading outdoor pest control franchise within the Neighborly family of home service brands.
The company has been franchising since 2012 and specializes in mosquito, tick, and flea barrier treatments for residential and commercial outdoor spaces.
The brand's signature service creates a protective barrier around yards, patios, and outdoor living areas, allowing customers to enjoy their time outside without pests.
Mosquito Joe Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $42,500 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Sales for Gross Sales of up to $500,000 (in a calendar year, per territory); 7% of Gross Sales for Gross Sales above $500,000 (in the same calendar year, in the one territory). of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales | National brand fund |
| Total Investment Range | $106,600 – $140,500 | Includes build-out, inventory, working capital |
The investment range of $107K–$141K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Sales for Gross Sales of up to $500,000 (in a calendar year, per territory); 7% of Gross Sales for Gross Sales above $500,000 (in the same calendar year, in the one territory).) and marketing fee (2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee 1/ | $42,500 | $42,500 |
| Direct Marketing Program/ Set Up Fee and Annual Program Fee 2/ | $33,000 | $33,000 |
| Direct Marketing Program/ Annual Mailing List Fee 2/ | $1,250 | $1,750 |
| SEO Program Fee (3 months) 3/ | $750 | $750 |
| Real Property 4/ | $0 | $4,000 |
| Office Furnishings, Signage & Fixtures 5/ | $0 | $1,500 |
| Tools, Equipment, Products, Uniforms & Supplies 5/ | $5,500 | $6,000 |
| Vehicle, Shelving & Decals 6/ | $2,500 | $9,000 |
| Initial Training 7/ | $100 | $2,000 |
| Insurances, Office & Marketing Supplies & Forms 8/ | $5,000 | $6,000 |
| Professional Fees 9/ | $0 | $1,000 |
| Licenses 10/ | $0 | $500 |
| Additional Funds for 3 months 11/ | $14,000 | $24,000 |
| Computer, Internet Devices, Phones, Software Setup 12/ | $2,000 | $4,500 |
| Deposits 13/ | $0 | $4,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of (i) $10,000.00 or (ii) 5% of the sales price. |
| Renewal Fee | $3,000 |
| Technology Fee | Currently, $325 per month plus $25 for each additional Territory after your first Territory. |
| Audit Fee | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees |
| Late Fees (on Software System Monthly Fees) | $25 per month or the maximum amount allowed under the law, whichever is less. |
| Tablet Access Fee | Currently, $25 access fee per tablet per month plus monthly internet access fees charged by cell service providers. |
| Direct Marketing Program Fees | Currently: $32,000 per year Annual Program Fee (unless your annual Gross Sales for prior calendar year were at least $400,000, in which case your Annual Program Fee will be $22,000), plus annual Mailing List Fee: Currently, $0.05 per Targeted Household on the mailing list obtained. If you own 4 or more territories, your Annual Program Fees for all territories will be $108,000 (for 4 territories) plus $22,000 for each additional territory. If you own 4 or more territories and achieve an average of $400,000 in annual Gross Sales across all territories, then your per-territory Annual Program Fee will be $22,000. |
| SEO Program Fee | Currently, $250 per month. |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work, including Gross Sales that relate to Key Accounts; Gross Sales that are the result of any lead or any agreement developed by our Business Development Department or any similar group that is part of our company or is our designee; Gross Sales for work that is dispatched from any call center operated by us or our designee; Gross Sales that are audited by us or our designee according to Key Accounts standards or Gross Sales that otherwise benefit from our Key Accounts activities or management. |
| National Call Center Fees | Currently: Monthly fees of $5.00/month plus $1.15 per minute. |
| Regional Meetings/Annual Convention | Annual Convention Fee, currently up to $500. Costs and expenses incurred by your attendees, plus the costs of travel, lodging and entertainment. $1,200 if you fail to attend the Annual Convention. |
| Late Fees (Franchise Agreement) | $10 per day |
| Dishonored Check of ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Additional Training Fees | The then-current fee, currently up to $500 per trainee per day. |
| Failure to Maintain Insurance | Our actual cost for insurance premiums and a reasonable fee for expenses we incur |
| Unapproved Suppliers | Our actual out-of-pocket costs of inspection or testing |
| Indemnification and attorneys’ fees and costs | Varies according to loss |
| Tax Reimbursement | Varies according to tax |
| Complaint Fee & Customer Refunds | $50 |
| Late Report Fee | $200 per report due. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 days of classroom training |
| Classroom Training | 27.5 |
| On-the-Job Training | 5.5 |
| Training Location | HQ or virtual training |
| Additional Training | Franchisor may require attendance at refresher training courses, regional meetings, and conventions. A fee may be charged for attendance, and franchisees are responsible for all associated costs (travel, lodging, food, wages). Additional training requested by the franchisee may incur a fee of up to $500 per trainee per day. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | limited territory protection |
| Exclusive Territory | No |
| Territory Size | generally approximately 25,000 to 35,000 Targeted Households |
| Description | The territory is a specified geographical area. A "Targeted Household" is a single-family detached home with an estimated annual gross income of at least $75,000. Territories with more than 35,000 Targeted Households incur an additional charge of $1.00 per household above 35,000. Franchisees may add unoccupied zip codes at $1.00 per Targeted Household. The franchisor uses demographic mapping software to determine household counts, which are conclusive for defined territories. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels outside their defined territory, but the franchisor will not operate or grant a franchise for another Mosquito Joe business to market within the franchisee's territory if the franchisee is in compliance. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | $3,000 |
| Renewal Conditions | To renew, the franchisee must not be in default, have satisfied all monetary and material obligations, received no more than 3 written default notices, provide written notice, have guarantors sign a general release, complete then-current training requirements, and sign the then-current franchise agreement (which may have different terms, conditions, and fees). |
| Transfer Fee | The greater of (i) $10,000.00 or (ii) 5% of the sales price. |
| Transfer Conditions | Conditions for franchisor approval of transfer include: franchisee not in default, all amounts owed to franchisor/affiliates/suppliers paid in full, all required reports provided, new franchisee qualifies, training arranged for new franchisee, franchisee/owners/guarantors sign release, transfer fee paid, new franchisee signs current franchise agreement, and new franchisee agrees to be bound by all customer obligations (including warranty work and service plans). |
| Termination for Cause | Franchisor can terminate for cause, including material misrepresentations, voluntary abandonment (failure to operate for 7+ consecutive days), business closure for public safety, registering domain with Marks, unauthorized use of confidential information, insolvency/bankruptcy of franchisee or guarantor, conviction of misdemeanor bringing disrepute or any felony, intentional understatement of Gross Sales/License Fees/MAP Fees, 3% audit variance, unauthorized transfer, or a second default of any type within a 12-month period (even if cured). Curable defaults typically have a 10 or 30-day cure period. |
| Non-Compete Period | During the term of the Franchise Agreement and for 2 years after termination or expiration. |
| Non-Compete Details | During the term, the franchisee (including owners, spouse, children, parents, or siblings) cannot be involved in any Competitive Business (defined as any business offering products/services that are part of the System, similar to the franchisee's, or directly/indirectly competes with the System). Post-term, the non-compete applies within the Territory, within a 25-mile radius of the outer boundary of the Territory, or inside the territory of another MOSQUITO JOE business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an individual, they must directly perform or supervise the business operations unless the franchisor consents otherwise. If the franchisee is a legal entity, a designated owner who has successfully completed training must directly supervise the business. All principal owners (5% or more ownership interest) must sign a personal guarantee and confidentiality agreement. The designated manager must also sign a confidentiality agreement. |
| Required Suppliers | Franchisor may designate primary or single source for certain products/supplies/services (call center, call routing, scheduling). Franchisee must use approved products, inventory, supplies, uniforms, tools, equipment, signs, telephone and internet equipment and service, advertising materials. Must license Software System from designated suppliers (currently ZorWare) and WebPunch. Must use Quickbooks Online from designated vendor Intuit Limited. Must pay monthly fee to Worldpay for credit card processing. Must participate in Direct Marketing Program and SEO Program (franchisor/affiliate are only approved suppliers). |
| Supply Restrictions | Franchisee must use only approved products/services/suppliers. Cannot contract with alternative suppliers for designated items. Must follow supplier approval procedures for other suppliers (30 days notice, samples, testing costs). Franchisor can revoke approval. Must use specific computer system compatible with Windows OS or Mac OS X, multi-purpose printer, internet modem/router, VoIP telephone, field service equipment. Must use current model iPad or equivalent handheld device for technicians. Must use specific software (Qvinci, Gmail, FranConnect, ClickTecs, ServSuite, Nextiva, WebPunch, Quickbooks Online). Cannot substitute required software. Franchisor has full access to data. Must use primary and recommended secondary internet access. |
| Franchisor Revenue from Suppliers | Franchisor or affiliate (ProTradeNet) may derive profit from Direct Marketing Program Fees and SEO Program Fees. ProTradeNet had revenue of $81,223 (1% of total revenues) from Mosquito Joe franchisee purchases in 2020. Predecessor had revenue of $463,476 (2.17% of total revenues) from approved supplier purchases in 2020. Franchisor had no revenue from franchisee purchases in 2020. ZorWare had revenue of $743,263 (11.87% of total revenues) from required purchases/payments by franchisees for initial training/maintenance/monthly support in 2020. May receive commission from brokerage of capital lease or equipment finance. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may finance a portion of the initial franchise fee, up to 70% (or 80% if certain requirements are met), but limited to less than 50% of the total equity, debt, and other financial support for the business. Interest rates range from 9% to 12% based on the franchisee's credit score. Monthly payments begin approximately 2 months after initial training, with repayment terms from 5 to 9 years depending on the loan amount. A security interest in the franchise and all assets is required. Franchisor may sell or assign promissory notes to third parties and may refer franchisees to third-party lenders. Renewal fees may also be financed at a 12% interest rate in limited circumstances. |
Mosquito Joe Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Mosquito Joe Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mosquito Joe System Growth
Mosquito Joe currently operates 345 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 59 | 4 | 286 |
| 2019 | 39 | 4 | 319 |
| 2020 | 36 | 10 | 345 |
Transfers: 19 | Closures: 10
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by BDO USA, LLP for year ending March 25, 2021.
Mosquito Joe Franchise — FAQ
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