Koala Insulation Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

Ambrosio’s Take

Koala Insulation is a service franchise operating in the energy efficiency space, which gives it a tailwind that most retail or food concepts don’t have – demand for insulation is driven by rising energy costs and tightening building standards, not just consumer discretionary spending. What stands out in the 2026 FDD is the outlet count: Koala went from 392 outlets at the start of 2025 to 333 by year’s end, a net loss of 59 – worth understanding before you go further. The financial data tells a more encouraging story, with system-wide sales growing from $10.5 million in 2021 to $104.4 million in 2025, and the multi-territory model appearing to be where the real upside lives, with average revenues nearly 90% higher than single-territory operators.

Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.

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

Section I – Estimated initial investment (franchise costs) for a Koala Insulation franchise, based on Item 7 of the company’s 2026 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Koala Insulation franchise, based on Items 5 and 6 of the company’s 2026 FDD

Section III – Number of franchised and company-owned Koala Insulation outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD

Section IV – News updates on the Koala Insulation franchise opportunity

Section V – Presentation and analysis of Koala Insulation’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:

• 2025 average, median, maximum, and minimum gross revenue for the 76 Koala Insulation franchisees that were operational during the entire 2025 fiscal year, grouped by level of annual gross revenue (greater than $1.75M, $1.0M to $1.75M, $750K to $1.0M, less than $750K, and total)

• 2025 average, median, maximum, and minimum gross revenue for the 7 Koala Insulation single-territory franchisees that were operational during the entire 2025 fiscal year

• 2025 average, median, maximum, and minimum gross revenue for the 69 Koala Insulation multi-territory franchisees that were operational during the entire 2025 fiscal year, grouped by thirds and overall

• 2024 gross sales, cost of goods sold, gross profit, certain marketing & operating expenses, and total revenue less cost of goods sold and certain required marketing & operating expenses for the 56 Koala Insulation franchisees that had been open and operating on a full-time basis for at least two full years as of December 31, 2024 and participated in the Benchmarking Study

• 2025 average, median, maximum, and minimum revenue per job for the 72 Koala Insulation reporting franchisees operating in 314 franchise territories during the 2025 fiscal year that utilized the CRM for this report

• 2021, 2022, 2023, 2024, and 2025 system sales for all Koala Insulation franchisees whose Koala Insulation businesses were operational for any part, even as little as one month if the franchisee completed initial training in October of their initial year of operations, of each of the 2021, 2022, 2023, 2024, and 2025 fiscal years

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

Section I – Koala Insulation Franchise Costs

• Koala Insulation franchise costs, based on Item 7 of the company’s 2026 FDD:

• Initial Franchise Fee:  $49,500
• Training Expenses:  $500 to $5,000
• Equipment and Vehicles:  $54,835 to $73,886
• GPS Tracking Systems:  $350 to $600
• Insurances:  $3,500 to $6,000
• Initial Advertising/Marketing:  $26,000 to $30,000
• Professional Fees:  $2,500 to $6,000
• Rent (parking location/office):  $0 to $4,000
• Office Expense:  $500 to $1,250
• Computer, Phone, and Technology Systems:  $1,700 to $5,500
• Technology Activation Fee:  $5,000
• Business Licenses and Permits:  $500 to $5,000
• Additional Funds – 3 Months:  $50,000
• Total Estimated Koala Insulation Franchise Costs:  $194,885 to $241,736

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

• Koala Insulation’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:

• Initial Franchise Fee:  $49,500

• Royalty Fee:  6.5% of Gross Sales during the first 6 calendar months of operations (which for clarity shall begin and include any portion of any month during which you first receive any Gross Sales). Commencing with the 7th month of operations, you must pay Koala Insulation the Royalty Fees equal to: the greater of the Minimum Royalty or 6.5% of Gross Sales for the first $1,000,000 in annual Gross Sales. If Gross Sales exceeds $1,000,000 annually, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 5% of Gross Sales for the remainder of that calendar year. If Gross Sales exceeds $2,000,000 annually, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 4.5% of Gross Sales for the remainder of that calendar year. If Gross Sales exceeds $3,000,000 annually, the Royalty Fee will be reduced to the greater of the Minimum Royalty or 3.5% of Gross Sales for the remainder of that calendar year.

• Opening Advertising (Initial Six Months):  minimum of $2,500 per month for the month prior to opening and five months after opening

• Local Marketing (Ongoing):  the greater of $2,000 or 5% of Gross Sales per month, plus advertising agency management fees

• Brand Fund Contribution:  currently 1% of Gross Sales; maximum of 2% of Gross Sales

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

Franchised

2023

• Outlets at the Start of the Year:  326
• Outlets at the End of the Year:  385
• Net Change:  +59

2024

• Outlets at the Start of the Year:  385
• Outlets at the End of the Year:  392
• Net Change:  +7

2025

• Outlets at the Start of the Year:  392
• Outlets at the End of the Year:  333
• Net Change:  -59

Company-Owned

2023

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

2024

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

2025

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

Section IV – News Updates on the Koala Insulation Franchise

• Koala Insulation Targets Indianapolis for Expansion, Opening the Door to Business Ownership in the $52-Billion Energy Efficiency Industry

• Koala Insulation Franchise Owner Gives Back

• Koala Insulation Franchise: The Smart, Sustainable Business Opportunity Gaining Ground in 2025

• Koala Insulation Ranked No. 166 on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Koala Insulation Franchise (Item 19, 2026 FDD)

Part 1 – Gross Sales for Koala Insulation Businesses for the 12 Months Ending September 30, 2025

• The information provided below presents Gross Sales derived by certain Koala Insulation franchisees during the period between October 1, 2024 and September 30, 2025 (“2025 Fiscal Year Reporting Period”).

• There were 333 total territories as of September 30, 2025. The information provided in the table below was compiled from 76 franchisees that were operational during the entire 2025 Fiscal Year Reporting Period. These franchisees operated 324 franchise territories during the 2025 Fiscal Year Reporting Period.

• 69 of these 76 franchisees operated in more than one territory under multiple franchise agreements for the 2025 Reporting Period as follows: seven of the franchisees operated two territories, 18 franchisees operated three territories, 19 franchisees operated four territories, seven franchisees operated five territories, six franchisees operated six territories, four franchisees operated seven territories, four franchisees operated eight territories, one franchisee operated nine territories, one franchisee operated 10 territories, one franchisee operated 11 territories, and one franchisee operated 12 territories.

• Koala Insulation franchisees report Gross Sales to it for all of their territories on the same report. As a result, for the purposes of this Item 19, each of the 76 franchisees were considered to be one franchise even though some operate in more than one territory. Franchisees that operate multiple territories are required to provide aggregate data for all of their territories, and therefore, any of those existing businesses that acquired additional territories during the 2025 Fiscal Year Reporting Period were included in the data.

• The data excluded 106 territories that either commenced operations by a new franchisee during the 2025 Fiscal Year Reporting Period or ceased operations during the 2025 Fiscal Year Reporting Period.

A. Total Gross Revenue

Greater Than $1.75 M

• Number of Franchisees:  19
• Minimum:  $1,758,103
• Maximum:  $4,298,645
• Median:  $2,204,929
• Average:  $2,407,791
• Number Above Average:  9
• Percentage Above Average:  47.4%

$1.0M to $1.75 M

• Number of Franchisees:  21
• Minimum:  $1,003,784
• Maximum:  $1,743,479
• Median:  $1,296,528
• Average:  $1,311,525
• Number Above Average:  10
• Percentage Above Average:  47.6%

$750K to $1.0M

• Number of Franchisees:  16
• Minimum:  $751,878
• Maximum:  $993,124
• Median:  $917,785
• Average:  $896,297
• Number Above Average:  9
• Percentage Above Average:  56.3%

Less Than $750K

• Number of Franchisees:  20
• Minimum:  $260,682
• Maximum:  $730,898
• Median:  $587,212
• Average:  $521,759
• Number Above Average:  12
• Percentage Above Average:  60.0%

Total

• Number of Franchisees:  76
• Median:  $1,009,689
• Average:  $1,290,342
• Number Above Average:  30
• Percentage Above Average:  39.5%

B. Total Gross Revenue – Single Territory

• The information provided in the table below was compiled from 7 single-territory Koala Insulation franchisees that were operational during the Reporting Period.

• The data excludes 105 franchisees that were operational during the Reporting Period but operated more than one Territory during the entire Reporting Period and report gross sales to Koala Insulation for all territories on the same report, and franchisees that either began operations or ceased active operations during the Reporting Period.

Single-Territory Franchisees

• Number of Franchisees:  7
• Minimum:  $260,682
• Maximum:  $1,074,827
• Median:  $715,690
• Average:  $712,711
• Number Above Average:  4
• Percentage Above Average:  57.1%

C. Total Gross Revenue – Multi-Territory

• The information provided in the table below was compiled from the 69 multi-territory Koala Insulation franchisees that were operational during the Reporting Period, each of which operate in more than one Territory under different Franchise Agreements.

• These 69 Koala Insulation franchisees reported Gross Sales to Koala Insulation for all territories on the same report. As a result, for the purposes of the table below, each of these 69 Koala Insulation franchisees was considered to be one franchisee even though they operate in more than one Territory.

Top Third

• Number of Franchisees:  23
• Minimum:  $1,561,961
• Maximum:  $4,298,645
• Median:  $2,061,551
• Average:  $2,277,003
• Number Above Average:  9
• Percentage Above Average:  39.1%

Middle Third

• Number of Franchisees:  23
• Minimum:  $906,013
• Maximum:  $1,548,623
• Median:  $1,087,475
• Average:  $1,153,449
• Number Above Average:  9
• Percentage Above Average:  39.1%

Bottom Third

• Number of Franchisees:  23
• Minimum:  $269,262
• Maximum:  $895,535
• Median:  $629,513
• Average:  $616,375
• Number Above Average:  12
• Percentage Above Average:  52.2%

Total

• Number of Franchisees:  69
• Median:  $1,009,689
• Average:  $1,332,276
• Number Above Average:  30
• Percentage Above Average:  43.5%

• The Average Gross Sales figures presented above represent the total dollar value of insulation services sold during the Reporting Period by the Koala Insulation franchisees identified above.

Part 2 – 2024 Benchmarking Study for Koala Insulation Franchisee Businesses for the 12 Months Ending December 31, 2024

• In 2025, Koala Insulation conducted a financial Benchmarking Study for Koala Insulation franchisees. The Benchmarking Study was conducted solely on a voluntary basis and was offered only to franchisees who had been operating their Koala Insulation Businesses at least 12 months at the time of the Benchmarking Study. Fifteen franchisees who joined the system in 2024 were ineligible to participate in the Benchmarking Study.

• 73 reporting franchisees operating 304 territories (“Reporting Franchisees”), out of 343 eligible Koala Insulation franchised territories that were open as of December 31, 2024, participated in the Benchmarking Study. Each of the 73 Koala Insulation Franchisees were located in the United States.

• This Part 2 presents information for those 56 Reporting franchisees operating in 249 territories that had been open and operating on a full-time basis for at least two full years as of December 31, 2024. Fifty-two of the 56 reporting franchisees contained in the chart below operate in multiple territories.

Gross Sales:  $1,265,597 (100.0%)

Cost of Goods Sold

• Installer Wages:  $260,392 (20.6%)
• Job Supplies:  $361,183 (28.5%)
• Cost of Fuel and Other COGS:  $29,361 (2.3%)
• Total Cost of Goods:  $650,936 (51.4%)

Gross Profit Margin:  $614,661 (48.6%)

Certain Marketing & Operating Expenses

• Royalties & National Brand Marketing Fund:  $78,280 (6.2%)
• Advertising and Marketing:  $71,280 (5.6%)
• Overhead Salaries and Wages:  $107,457 (8.5%)
• Rent and Utilities Expense:  $38,824 (3.1%)
• Small Tools, Equipment & Uniform Expense:  $13,079 (1.0%)
• Vehicle Expense:  $26,666 (2.1%)
• Bank Service Charges & Merchant Fees:  $17,084 (1.3%)
• Insurance:  $39,014 (3.1%)
• Licenses & Permits:  $215 (0.0%)
• IT & Telephone:  $10,865 (0.9%)
• Total Certain Marketing & Operating Expenses:  $402,764 (31.8%)

Total Revenue Less Cost of Goods Sold and Certain Required Marketing & Operating Expenses:  $211,897 (16.7%)

• “Gross Sales” for purposes of this Part 2 means the total of all receipts derived from all sales of completed insulation projects.

• “Installer Wages” is all gross wages paid to install staff, contractor, and subcontractors but do not include processing fees or other costs.

• “Job Supplies” includes the insulation product(s) and consumable goods required to provide the services. This does not include any shipping costs or equipment rental costs.

• “Installer Fuel and Other COGS” is all gross wages paid to install staff, contractors, and subcontractors but does not include processing fees, other costs, or Overhead Salaries and Wages Expense (as defined below).

• “Royalties & National Brand Marketing Fund” was calculated by first determining the amount of Monthly Branding Royalty and National Brand Marketing Fund that each of the 44 Reporting Franchisees would have paid under the FDD, and then taking the total average of such amount.

• “Advertising and Marketing” is the amount of advertising and marketing services purchased by the franchisee in their local territories for lead generation.

• “Overhead Salaries and Wages” means compensation paid to either part-time or full-time office administration staff to answer phones, respond to new customer inquiries, assist in scheduling, help maintain data in the field services IT platform, and sometimes light bookkeeping. Additionally, production management staff that manage insulation services. This does not include payroll taxes, employee benefits, or payroll processing fees.

• “Rent and Utilities Expense” is the amount spent on rent for office or warehouse space as well as any utilities costs for occupying those facilities.

• “Small Tools, Equipment & Uniform Expense” includes installation tools such as hammer tackers, screwdrivers, construction supplies, personal protective equipment, removable vacuum bags and staples, small equipment drills, and ladders and uniforms.

• “Vehicle Expense” includes costs of parking, tolls, maintenance, and vehicle leases, but does not include fuel or insurance.

• “Bank Service Charges & Merchant Fees” means customary fees associated with maintaining a local banking relationship and accepting payment from customers via credit cards.

• “Insurance” includes the amount spent on insurance coverage policies required under the FDD.

• “Licenses & Permits” means the amount spent on maintaining required licenses and permits to operate their Koala Insulation business.

• “IT & Telephone” means the amount spent on licensing the field services technology platform for office and field devices and maintaining a VOIP phone system.

• “Total Revenue Less Cost of Goods Sold and Certain Marketing & Operating Expenses” means the average total Revenue minus Installer Wages, Job Supplies, Cost of Fuel and Other COGS, Royalties & National Brand Marketing Fund, Advertising and Marketing, Rent and Utilities, Small Tools, Equipment & Uniform Expense, Vehicle Expense, Bank Service Charges & Merchant Fees, Insurance, License & Permits, and IT & Telephone.

• This amount does not equal the average gross profit of the 56 Reporting Franchisees that had been open and operating on a full-time basis for at least two years as of December 31, 2024, as they each incurred additional costs and expenses that are not reflected in this Part 2, including any compensation paid to either part-time or full-time office administration staff, sales personnel or operations management staff, or compensation paid to the owner.

Part 3 – Average Revenue per Job for Year Ending September 30, 2025

• The table below presents the median and average “Average Revenue per Job” for Koala Insulation projects as reported by certain Koala Insulation businesses operational during the fiscal year ending September 30, 2025.

• The information provided in the table below was compiled from reports compiled from the Customer Relationship Management (“CRM”) software utilized by Koala Insulation franchisees.

• The Average Revenue per Job report was obtained from 72 Reporting Franchisees operating in 314 franchise territories during the fiscal year ending September 30, 2025. Excluded from the report are four franchisees that did not utilize the CRM for this report.

Average Revenue per Job

• Number of Franchisees:  72
• Minimum:  $1,750.07
• Maximum:  $6,329.68
• Median:  $3,378.75
• Average:  $3,507.41
• Number Above Average:  29
• Percentage Above Average:  40%

• “Average Revenue per Job” is calculated by the CRM software reflecting the average revenue realized from each job that the franchisee completed and recorded in the CRM during the reporting period.

Part 4 – Koala Franchise System Sales for Years Ending September 2021, 2022, 2023, 2024, and 2025

• The information provided in the tables below is based on the aggregate Gross Sales (“System Sales”) reported to Koala Insulation from all Koala franchisees whose Koala businesses were operational for any part, even as little as one month if the franchisee completed initial training in October of their initial year of operations, of each fiscal year ended September 30, 2021, September 30, 2022, September 30, 2023, September 30, 2024, and September 30, 2025.

• 2021:  $10,467,822 (N/A)
• 2022:  $44,533,927 (325.4% sales growth)
• 2023:  $79,031,430 (77.5% sales growth)
• 2024:  $96,730,976 (22.4% sales growth)
• 2025:  $104,437,747 (8.0% sales growth)

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