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FDD Talk 2015: The Mr. Rooter Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on December 11, 2015

in FDD Talk 2017: Service Franchises, Franchise Earnings, Home Repairs Franchise



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Mr. Rooter Franchise Costs

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Mr. Rooter franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Mr. Rooter franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Mr. Rooter’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross sales for the Top 10%, Top 25%, Top 50%, and all 187 franchised Mr. Rooter businesses that were in business for 12 months or more and had a full 12 months of reported sales in 2014
  • 2014 average revenue per work order for franchised Mr. Rooter businesses with a territory population of up to 250,000; 250,000 to 500,000; over 500,000; and all territory populations, respectively

Section I – Background Information

Mr. Rooter got its start way back in 1968 when David Duck opened the first location in Oklahoma City, OK. He began franchising the concept in 1972. It offers both residential and commercial clients full plumbing, drain, and sewer cleaning and repair services.



In 1989 the chain became a subsidiary of The Dwyer Group, a holding company of many service-based franchise businesses, including Aire Serv (HVAC installation, maintenance, and repair), Glass Doctor (automotive, residential, and commercial glass replacement), The Grounds Guys (landscaping, lawn care, and snow removal), Five Star Painting, Molly Maid (home cleaning), Mr. Appliance (service and repair), Mr. Electric (electrical installations and repairs), Mr. Handyman (home repair, maintenance, and improvement), ProTect Painters, and Rainbow International (residential and commercial restoration and cleaning).

The number of locations in the U.S., Canada, and internationally (it’s called Drain Doctor in the UK and Portugal) has been in decline over the past 5 years. Back in 2011 there were 353 locations, but as of 2015 there are only 304.

Here’s how Mr. Rooter keeps things flowing in the plumbing sector:

Professional Standards

Emergency? No problem. Mr. Rooter is available 24/7 to address immediate needs. And that includes weekends, nights, holidays, all at no additional charge. The chain guarantees its parts and workmanship, and offers up-front fixed pricing on all its jobs.

Plumbing Expertise

Mr. Rooter specializes in problem plumbing and drains, but you needn’t wait for a crisis to develop. Customers can enjoy the peace of mind that comes from a preventative whole-home plumbing check-up to identify potential problems before they become emergencies.

Mr. Rooter uses state-of-the-art technologies and cameras for their inspections. They also pride themselves on knowing and adhering to local codes, so you never have to worry about it.



A Winning Service Philosophy

Mr. Rooter prides itself on its world-class customer service, which it says is its number one priority. Every Mr. Rooter plumbing professional is friendly and courteous, treating both you and your home with the utmost respect. And you’ll have all the repair options and pricing laid out for you clearly before any work starts.

New Leadership

This year Mr. Rooter hired a new president – Doyle James. James was actually a Mr. Rooter franchisee back in 1989 when The Dwyer Group acquired the chain.

James became involved in The Dwyer Group himself in 1997 as franchise support and then vice president of operations for Aire Serv, where he was appointed chief operations officer in 2003, and finally president in 2004. During his tenure there, he grew that franchise to more than 190 locations.

In 2006 he took on the role of president for ProTradeNet, The Dwyer Group’s vendor relations department.

Mr. Rooter is The Dwyer Group’s largest brand, and it says a lot that it chose someone to be president who was once a Mr. Rooter franchisee.

Section II – Estimated Costs

  • Please click here for detailed estimates of Mr. Rooter franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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