USA Insulation: $1.16M Average Sales Per Territory vs. $265K-$410K Franchise Cost

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a USA Insulation franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a USA Insulation franchise, based on Items 5 and 6 of the company’s 2024 FDD

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Section III – Number of franchised and company-owned USA Insulation outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the USA Insulation franchise opportunity

Section V – Presentation and analysis of USA Insulation’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

2023 actual and average number of territories, gross sales, cost of proprietary products as a % of gross sales, cost of goods as a % of gross sales, cost of sales commissions as a % of gross sales, and cost of labor as a % of gross sales for the 47 USA Insulation franchises (operating 70 territories) that had been operating at least one franchised business in at least one territory for at least 12 months as of December 31, 2023

2023 actual number of territories, gross sales, cost of proprietary products as a % of gross sales, cost of goods as a % of gross sales, cost of sales commissions as a % of gross sales, and cost of labor as a % of gross sales for the 1 USA Insulation corporate-owned location (operating 3 territories)

Section VI – Key ratios, comparables, computations, and analyses for the USA Insulation franchise opportunity (exclusive content for Platinum subscribers)

Section I – USA Insulation Franchise Costs

USA Insulation franchise costs, based on Item 7 of the company’s 2024 FDD:

Initial Franchise Fee: $45,000 to $55,000
Real Property: $12,000 to $24,000
Leasehold Improvements: $12,000 to $15,000
Insulation Truck and Upfit: $100,000 to $110,000
Equipment: $5,000 to $15,000
Office Supplies, Fixtures, and Signs: $8,000 to $14,000
Professional Fees: $500 to $5,000
Deposits: $2,000 to $10,000
Opening Inventory: $14,000 to $30,000
Initial Marketing Spend: $29,000 to $67,000
Training and Travel and Living Expenses Associated with USA Insulation’s Initial Training Program: $4,000 to $9,000
Insurance: $4,000 to $6,000
Additional Funds – 3 Months: $30,000 to $50,000
Total Estimated USA Insulation Franchise Costs: $265,500 to $410,000

Section II – USA Insulation’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

USA Insulation’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

Initial Franchise Fee: $45,000 (for a Small Market territory) to $55,000 (for a Large Market territory)

Royalty Fee: the greater of: (a) 5% of the Gross Sales of your Franchised Business from the preceding reporting period; or (b) $1,000 per month

Brand Fund Fee: the greater of: (a) 2% of the Gross Sales of your Franchised Business from the preceding reporting period; or (b) $500 per month

Section III – Number of Franchised and Company-Owned USA Insulation Outlets

Franchised

2021

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Outlets at the Start of the Year: 40
Outlets at the End of the Year: 59
Net Change: +19

2022

Outlets at the Start of the Year: 59
Outlets at the End of the Year: 91
Net Change: +32

2023

Outlets at the Start of the Year: 91
Outlets at the End of the Year: 100
Net Change: +9

Company-Owned

2021

Outlets at the Start of the Year: 1
Outlets at the End of the Year: 1
Net Change: 0

2022

Outlets at the Start of the Year: 1
Outlets at the End of the Year: 1
Net Change: 0

2023

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Outlets at the Start of the Year: 1
Outlets at the End of the Year: 1
Net Change: 0

Section IV – News Updates on the USA Insulation Franchise

USA Insulation Franchisee Chris Paxson Turned His Dreams Into Reality

USA Insulation Ranked No. 111 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the USA Insulation Franchise (Item 19, 2024 FDD)

As of December 31, 2023, there were 100 franchise outlets operating in USA Insulation’s franchise system.

This Item sets forth certain historical financial data reported by these franchisees for the calendar year ended December 31, 2023. It also discloses certain cost information based upon cost information reported to USA Insulation by its franchisees for the calendar year ended December 31, 2023.

Information is provided below for all territories operated by a franchisee that had been operating at least one Franchised Business in at least one territory for at least 12 months as of December 31, 2023.

The first of these Franchised Businesses opened in 2008 and the latest opened in 2023.

USA Insulation has also included this information for its corporate-owned location. This information for this corporate-owned location came from USA Insulation’s internal records.

Excluded from the tables below is information provided for territories operated by franchisees that had been operating in USA Insulation’s System for less than 12 months as of December 31, 2023.

USA Insulation has provided information for 70 territories. USA Insulation has excluded information for 10 territories that had not been operated for at least 12 months as of December 31, 2023. None of these exclusions were due to closure. USA Insulation is unable to provide information for 20 territories for which the franchisees did not report data.

Franchise #1

Number of Territories: 1
Gross Sales: $1,900,000.00
Cost of Proprietary Foam Products as a % of Gross Sales: 8%
Cost of Goods as a % of Gross Sales: 18%
Cost of Sales Commissions as a % of Gross Sales: 15%
Cost of Labor as a % of Gross Sales: 13%

Franchise #2

Number of Territories: 1
Gross Sales: $876,788.92
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 24%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 12%

Franchise #3

Number of Territories: 1
Gross Sales: $910,000.68
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 24%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 12%

Franchise #4

Number of Territories: 1
Gross Sales: $1,474,106.33
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 24%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 12%

Franchise #5

Number of Territories: 1
Gross Sales: $1,239,025.75
Cost of Proprietary Foam Products as a % of Gross Sales: 7%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 8%
Cost of Labor as a % of Gross Sales: 14%

Franchise #6

Number of Territories: 1
Gross Sales: $357,543.72
Cost of Proprietary Foam Products as a % of Gross Sales: 13%
Cost of Goods as a % of Gross Sales: 21%
Cost of Sales Commissions as a % of Gross Sales: 7%
Cost of Labor as a % of Gross Sales: 23%

Franchise #7

Number of Territories: 1
Gross Sales: $1,228,133.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 16%

Franchise #8

Number of Territories: 1
Gross Sales: $1,809,194.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 16%

Franchise #9

Number of Territories: 1
Gross Sales: $947,231.39
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 16%
Cost of Sales Commissions as a % of Gross Sales: 8%
Cost of Labor as a % of Gross Sales: 12%

Franchise #10

Number of Territories: 1
Gross Sales: $823,731.00
Cost of Proprietary Foam Products as a % of Gross Sales: 7%
Cost of Goods as a % of Gross Sales: 12%
Cost of Sales Commissions as a % of Gross Sales: 4%
Cost of Labor as a % of Gross Sales: 23%

Franchise #11

Number of Territories: 1
Gross Sales: $2,544,940.00
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 12%
Cost of Labor as a % of Gross Sales: 13%

Franchise #12

Number of Territories: 1
Gross Sales: $2,497,967.00
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 24%
Cost of Labor as a % of Gross Sales: 6%

Franchise #13

Number of Territories: 1
Gross Sales: $1,499,672.00
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 8%
Cost of Labor as a % of Gross Sales: 14%

Franchise #14

Number of Territories: 1
Gross Sales: $860,000.00
Cost of Proprietary Foam Products as a % of Gross Sales: 9%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 10%

Franchise #15

Number of Territories: 2
Gross Sales: $2,308,633.59
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 4%
Cost of Sales Commissions as a % of Gross Sales: 3%
Cost of Labor as a % of Gross Sales: 8%

Franchise #16

Number of Territories: 1
Gross Sales: $2,617,278.55
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 4%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 13%

Franchise #17

Number of Territories: 1
Gross Sales: $1,101,668.00
Cost of Proprietary Foam Products as a % of Gross Sales: 8%
Cost of Goods as a % of Gross Sales: 11%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 7%

Franchise #18

Number of Territories: 1
Gross Sales: $870,878.17
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 5%
Cost of Sales Commissions as a % of Gross Sales: 14%
Cost of Labor as a % of Gross Sales: 8%

Franchise #19

Number of Territories: 1
Gross Sales: $1,138,709.00
Cost of Proprietary Foam Products as a % of Gross Sales: 7%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 10%

Franchise #20

Number of Territories: 1
Gross Sales: $347,523.00
Cost of Proprietary Foam Products as a % of Gross Sales: 7%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 10%

Franchise #21

Number of Territories: 1
Gross Sales: $462,567.00
Cost of Proprietary Foam Products as a % of Gross Sales: 7%
Cost of Goods as a % of Gross Sales: 7%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 10%

Franchise #22

Number of Territories: 3
Gross Sales: $709,245.92
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 24%
Cost of Sales Commissions as a % of Gross Sales: 11%
Cost of Labor as a % of Gross Sales: 12%

Franchise #23

Number of Territories: 1
Gross Sales: $1,218,764.04
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 13%
Cost of Labor as a % of Gross Sales: 13%

Franchise #24

Number of Territories: 1
Gross Sales: $556,634.40
Cost of Proprietary Foam Products as a % of Gross Sales: 15%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 28%
Cost of Labor as a % of Gross Sales: 13%

Franchise #25

Number of Territories: 1
Gross Sales: $294,046.00
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 3%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 14%

Franchise #26

Number of Territories: 1
Gross Sales: $285,457.34
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 4%
Cost of Sales Commissions as a % of Gross Sales: 8%
Cost of Labor as a % of Gross Sales: 14%

Franchise #27

Number of Territories: 1
Gross Sales: $845,694.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #28

Number of Territories: 1
Gross Sales: $171,816.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #29

Number of Territories: 1
Gross Sales: $671,718.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #30

Number of Territories: 1
Gross Sales: $1,980,400.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #31

Number of Territories: 1
Gross Sales: $1,213,159.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #32

Number of Territories: 1
Gross Sales: $556,116.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #33

Number of Territories: 1
Gross Sales: $297,550.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 13%

Franchise #34

Number of Territories: 1
Gross Sales: $1,705,138.72
Cost of Proprietary Foam Products as a % of Gross Sales: 10%
Cost of Goods as a % of Gross Sales: 12%
Cost of Sales Commissions as a % of Gross Sales: 11%
Cost of Labor as a % of Gross Sales: 12%

Franchise #35

Number of Territories: 1
Gross Sales: $879,893.74
Cost of Proprietary Foam Products as a % of Gross Sales: 4%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 6%
Cost of Labor as a % of Gross Sales: 12%

Franchise #36

Number of Territories: 1
Gross Sales: $480,304.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 12%
Cost of Labor as a % of Gross Sales: 12%

Franchise #37

Number of Territories: 1
Gross Sales: $303,890.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 12%
Cost of Labor as a % of Gross Sales: 12%

Franchise #38

Number of Territories: 1
Gross Sales: $394,114.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 12%
Cost of Labor as a % of Gross Sales: 12%

Franchise #39

Number of Territories: 1
Gross Sales: $276,689.00
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 8%
Cost of Sales Commissions as a % of Gross Sales: 12%
Cost of Labor as a % of Gross Sales: 12%

Franchise #40

Number of Territories: 1
Gross Sales: $2,514.491.00
Cost of Proprietary Foam Products as a % of Gross Sales: 5%
Cost of Goods as a % of Gross Sales: 17%
Cost of Sales Commissions as a % of Gross Sales: 8%
Cost of Labor as a % of Gross Sales: 11%

Franchise #41

Number of Territories: 1
Gross Sales: $1,076,467.00
Cost of Proprietary Foam Products as a % of Gross Sales: 2%
Cost of Goods as a % of Gross Sales: 23%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 16%

Franchise #42

Number of Territories: 12
Gross Sales: $17,373,280.56
Cost of Proprietary Foam Products as a % of Gross Sales: 4%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 15%
Cost of Labor as a % of Gross Sales: 12%

Franchise #43

Number of Territories: 3
Gross Sales: $2,529,300.00
Cost of Proprietary Foam Products as a % of Gross Sales: 12%
Cost of Goods as a % of Gross Sales: 10%
Cost of Sales Commissions as a % of Gross Sales: 15%
Cost of Labor as a % of Gross Sales: 12%

Franchise #44

Number of Territories: 4
Gross Sales: $7,480,651.02
Cost of Proprietary Foam Products as a % of Gross Sales: 6%
Cost of Goods as a % of Gross Sales: 51%
Cost of Sales Commissions as a % of Gross Sales: 10%
Cost of Labor as a % of Gross Sales: 15%

Franchise #45

Number of Territories: 3
Gross Sales: $4,823,263.09
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 9%
Cost of Sales Commissions as a % of Gross Sales: 4%
Cost of Labor as a % of Gross Sales: 10%

Franchise #46

Number of Territories: 2
Gross Sales: $3,781,983.98
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 17%
Cost of Sales Commissions as a % of Gross Sales: 26%
Cost of Labor as a % of Gross Sales: 24%

Franchise #47

Number of Territories: 2
Gross Sales: $1,357,831.67
Cost of Proprietary Foam Products as a % of Gross Sales: 3%
Cost of Goods as a % of Gross Sales: 13%
Cost of Sales Commissions as a % of Gross Sales: 9%
Cost of Labor as a % of Gross Sales: 18%

Franchise Average

Number of Territories: 1.5
Gross Sales: $1,736,032
Cost of Proprietary Foam Products as a % of Gross Sales: 6.7%
Cost of Goods as a % of Gross Sales: 12.5%
Cost of Sales Commissions as a % of Gross Sales: 10.7%
Cost of Labor as a % of Gross Sales: 13.0%

Corporate Location

Number of Territories: 3
Gross Sales: $4,971,058.20
Cost of Proprietary Foam Products as a % of Gross Sales: 9%
Cost of Goods as a % of Gross Sales: 16%
Cost of Sales Commissions as a % of Gross Sales: 15%
Cost of Labor as a % of Gross Sales: 10%

“Gross Sales” as used in this Item 19 has the same meaning as “Gross Sales” disclosed in Item 6 of the Disclosure Document and as is used in the Franchise Agreement.

“Cost of Goods” includes all insulation products other than USA Insulation’s Proprietary Foam Insulation products that a franchisee would ordinarily purchase.

“Cost of Sales Commissions” is the amounts paid to sales personnel on customer sales.

“Cost of Labor” is the amounts for payroll for installation technicians.

These costs to franchisees have been reported to USA Insulation by its reporting franchisees discussed in the chart above. The items in the chart above related to percentage of Gross Sales were determined by taking the total amount of the applicable cost for that outlet and dividing it against the Gross Sales for that outlet.

The information in this Item 19 does not reflect all costs of sales, operating expenses, or other costs or expenses that must be deducted from the sales figures to calculate net income or profit.

The dollar amounts shown in this Item 19 have been rounded to the nearest cent and the percentages have been rounded to the nearest full percentage point.

Except for the corporate-owned location, the information contained in this Item was reported to USA Insulation by its franchisees.

Some outlets have sold these amounts. Your individual results may differ. There is no assurance you’ll sell as much.

Section VI – USA Insulation Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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Section I – USA Insulation Franchise Costs

Section II – USA Insulation’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

Section III – Number of Franchised and Company-Owned USA Insulation Outlets

Franchised

Company-Owned

Section IV – News Updates on the USA Insulation Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the USA Insulation Franchise (Item 19, 2024 FDD)

Section VI – USA Insulation Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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