In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Mr. Rooter franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Mr. Rooter franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Mr. Rooter franchise opportunity
Section V – Presentation and analysis of Mr. Rooter’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest gross sales for the top 10%, top 25%, top 50%, bottom 50%, bottom 25%, bottom 10%, and all 195 franchised Mr. Rooter businesses that were in operation and reporting sales for the entire 2022 calendar year
Section VI – Key ratios, comparables, computations, and analyses for the Mr. Rooter franchise opportunity (exclusive content for Platinum subscribers)
Section I – Mr. Rooter Franchise Costs
- Mr. Rooter franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $42,500 + $425 per 1,000 additional population over minimum
- Vehicle: $3,600 to $59,000
- Equipment, Supplies, and Inventory: $10,000 to $40,000
- Insurance: $1,400 to $2,700
- Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase: $7,500 to $15,000
- Training, Travel, Lodging, and Food: $2,950 to $5,950
- Deposits, Permits, and Licenses: $0 to $2,000
- Professional Fees: $0 to $5,000
- Additional Funds for 3 Months: $15,000 to $40,000
- Technician Training: $150 to $1,240
- Real Estate: $0 to $12,000
- Total Estimated Mr. Rooter Franchise Costs: $83,100 (does not include real estate costs) to $225,390 + any additional franchise fee + any real estate costs
Section II – Mr. Rooter’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Mr. Rooter’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $42,500 + $425 per 1,000 additional population over minimum
- License Fee: 5% to 7% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum license fees apply.
- Marketing, Advertising, and Promotion (MAP) Fee: 2% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum MAP fees apply.
- Local Marketing Groups: not to exceed 3% of Gross Sales. As of the issuance date of the 2023 Franchise Disclosure Document, Mr. Rooter may require that a portion of your LMG contribution (currently, 2% of your Gross Sales) be paid for use towards the Neighborly marketing and brand awareness initiatives.
Section III – Number of Franchised and Company-Owned Mr. Rooter Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 214
- Net Change: +8
2021
- Outlets at the Start of the Year: 214
- Outlets at the End of the Year: 205
- Net Change: -9
2022
- Outlets at the Start of the Year: 205
- Outlets at the End of the Year: 209
- Net Change: +4
Company-Owned
2020
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 2
- Net Change: +2
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 3
- Net Change: +1
Section IV – News Updates on the Mr. Rooter Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Mr. Rooter Franchise (Item 19, 2023 FDD)
- The sales figures listed below include average and median annual Gross Sales data derived from historical operating results of Mr. Rooter franchised businesses for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”).
- Mr. Rooter obtained these sales figures from information provided to it by its franchisees. Neither Mr. Rooter nor its independent certified public accountants have audited or verified any of the sales figures reported to it. Franchisees are not required to use generally accepted accounting principles when reporting these figures.
- As of December 31, 2022, there were 209 Mr. Rooter franchised businesses in operation in the United States. This Item 19 includes data from 195 franchised businesses, which were all in operation and reporting sales for the entire Reporting Period.
- The information provided in this Item 19 does not include data from (a) 12 franchised businesses that opened during the year 2022 and therefore were not in operation for the entire Reporting Period; and (b) two franchised businesses owned by a multi-unit franchisee that only reported data to Mr. Rooter on an aggregated basis for both of its businesses.
- Ten franchised businesses that closed during the Reporting Period and thus were not in operation for the entire Reporting Period are also excluded from this Item 19. Of the 10 franchised businesses that closed during the Reporting Period, no business closed after being open for less than 12 months.
Gross Sales for Franchised Businesses Open and Reporting for Full 52 Weeks From January 1, 2022 Through December 31, 2022 (the “Reporting Period”)
Top 10%
- Average Gross Sales: $7,108,668
- Median Gross Sales: $6,047,850
- Number of Franchised Businesses in This Group: 20
- Number and Percentage in Group That Attained Average or Greater: 5 / 25%
- Highest Gross Sales: $17,313,900
- Lowest Gross Sales: $4,115,970
Top 25%
- Average Gross Sales: $4,732,931
- Median Gross Sales: $3,792,562
- Number of Franchised Businesses in This Group: 49
- Number and Percentage in Group That Attained Average or Greater: 19 / 39%
- Highest Gross Sales: $17,313,900
- Lowest Gross Sales: $2,337,833
Top 50%
- Average Gross Sales: $3,292,686
- Median Gross Sales: $2,333,029
- Number of Franchised Businesses in This Group: 98
- Number and Percentage in Group That Attained Average or Greater: 30 / 31%
- Highest Gross Sales: $17,313,900
- Lowest Gross Sales: $1,369,368
Bottom 50%
- Average Gross Sales: $684,170
- Median Gross Sales: $691,355
- Number of Franchised Businesses in This Group: 98
- Number and Percentage in Group That Attained Average or Greater: 50 / 51%
- Highest Gross Sales: $1,362,919
- Lowest Gross Sales: $1,385
Bottom 25%
- Average Gross Sales: $344,961
- Median Gross Sales: $288,060
- Number of Franchised Businesses in This Group: 49
- Number and Percentage in Group That Attained Average or Greater: 22 / 45%
- Highest Gross Sales: $691,355
- Lowest Gross Sales: $1,385
Bottom 10%
- Average Gross Sales: $140,329
- Median Gross Sales: $133,415
- Number of Franchised Businesses in This Group: 20
- Number and Percentage in Group That Attained Average or Greater: 9 / 45%
- Highest Gross Sales: $235,815
- Lowest Gross Sales: $1,385
100%
- Average Gross Sales: $1,996,116
- Median Gross Sales: $1,369,368
- Number of Franchised Businesses in This Group: 195
- Number and Percentage in Group That Attained Average or Greater: 68 / 35%
- Highest Gross Sales: $17,313,900
- Lowest Gross Sales: $1,385
- Of the franchised businesses in business for 12 months or more and which businesses had full 52 weeks of reported Gross Sales in 2022, the average Gross Sales for 2022 for 7 groups are shown: those that ranked in the top 10%, 25%, and 50%, respectively, in terms of highest level of Gross Sales; those that ranked in the bottom 10%, 25%, and 50%, respectively, in terms of lowest level of Gross Sales; and, finally, those representing all (100%) of Franchised Businesses in business more than 12 months with a full 52 weeks of reported sales in 2022.
- “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a Mr. Rooter business whether under any of the Marks or otherwise.
- Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that Mr. Rooter authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – Mr. Rooter Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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