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

Ambrosio’s Take

USA Insulation operates in the same energy efficiency tailwind as Koala Insulation, but with a notably different system profile – after two years of growth, the outlet count dropped from 109 to 96 in 2025, with 13 franchises permanently closing during the year, which is the most important context for reading everything else in this FDD. The average gross sales of $1,588,037 across 37 reporting franchises looks strong, but these franchisees operate an average of 2 territories each, making the per-territory figure of $794,018 the more grounded number for a prospective single-territory buyer. The first quartile tells the more compelling story – averaging $3,060,277 across an average of 2.8 territories – and the pattern is consistent with what we see across many service franchises: the operators who commit to multiple territories and build the infrastructure to support them tend to pull significantly ahead of those who don’t.

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

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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 2026 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 2026 FDD

Section III – Number of franchised and company-owned USA 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 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 2026 FDD, including information on the:

2025 average, median, highest, and lowest gross sales for the 37 USA Insulation franchises, operating a total of 74 designated territories, that operated for the entire 12-month period ended December 31, 2025

2025 average, median, highest, and lowest gross sales; average cost of proprietary foam products as a % of gross sales; average cost of goods as a % of gross sales; average cost of sales commissions as a % of gross sales; and average cost of labor as a % of gross sales for the 37 USA Insulation franchises, operating a total of 74 designated territories, that operated for the entire 12-month period ended December 31, 2025, grouped by quartile

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

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Section I – USA Insulation Franchise Costs

USA Insulation franchise costs, based on Item 7 of the company’s 2026 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: $120,000 to $150,000
Equipment: $5,000 to $15,000
Telematics: $4,900 to $6,750
Office Supplies, Fixtures, and Signs: $8,000 to $15,000
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
Initial Training Expenses: $8,000 to $18,000
Insurance: $4,000 to $6,000
Additional Funds – 3 Months: $40,000 to $60,000
Total Estimated USA Insulation Franchise Costs: $304,400 to $476,750

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 2026 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 prior month; or (b) $1,000 per month

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

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

Franchised

2023

Outlets at the Start of the Year: 91
Outlets at the End of the Year: 102
Net Change: +11

2024

Outlets at the Start of the Year: 102
Outlets at the End of the Year: 109
Net Change: +7

2025

Outlets at the Start of the Year: 109
Outlets at the End of the Year: 96
Net Change: -13

Company-Owned

2023

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

2024

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

2025

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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

Veteran Entrepreneur to Launch Multiple USA Insulation Locations in the Southeast

James & Angela Merchant Begin Their Next Chapter with USA Insulation in Virginia

Kelly Hart Expands USA Insulation Presence in Denver

Why USA Insulation Is the #1 Multi-Unit Franchise Opportunity in the Home Services Industry

USA Insulation Ranked No. 375 on Entrepreneur’s 2026 Franchise 500 List

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

As of December 31, 2025, there were 47 franchises operating a total of 96 territories in the USA Insulation franchise system. These numbers do not include 13 franchises who operated a total of 21 territories that permanently closed as USA Insulation franchised businesses in 2025. One of these franchises operated for less than 12 months before closing.

The information in the tables below is derived from 37 USA Insulation franchises operating a total of 74 territories. The first of these Franchised Businesses opened in 2008 and the latest opened in 2024. Excluded are 8 franchises operating 14 territories that did not provide USA Insulation with data for 2025. USA Insulation also excluded 2 franchises operating 8 territories that were not operating for the entire 12-month period ended December 31, 2025.

This Item sets forth certain historical financial data derived from data reported to USA Insulation for the calendar year ended December 31, 2025 in two tables:

The first table provides 2025 average Gross Sales information for all 37 franchises.

The second table provides this same information and certain cost information for these same 37 franchisees, but USA Insulation has placed them in quartiles in descending order based on their individual Gross Sales for 2025.

Part 1 – 2025 Gross Sales Information

Average Gross Sales: $1,588,037
High Gross Sales: $4,650,231
Low Gross Sales: $174,348
Median Gross Sales: $1,491,238
Number and Percentage That Met or Exceeded Average: 17/46%

Part 2 – First Quartile

Number of Franchises: 9
Average Number of Territories Per Franchise: 2.8

Average Gross Sales: $3,060,277
Median Gross Sales: $2,569,903
Number and Percentage That Met or Exceeded Average Gross Sales: 4/44%
High Gross Sales: $4,650,231
Low Gross Sales: $2,100,000

Average Cost of Proprietary Foam Products as a % of Gross Sales: 5.1%
Average Cost of Goods as a % of Gross Sales: 14.9%
Average Cost of Sales Commissions as a % of Gross Sales: 9.8%
Average Cost of Labor as a % of Gross Sales: 15.2%

Part 3 – Second Quartile

Number of Franchises: 10
Average Number of Territories Per Franchise: 2.4

Average Gross Sales: $1,759,539
Median Gross Sales: $1,759,821
Number and Percentage That Met or Exceeded Average Gross Sales: 5/50%
High Gross Sales: $1,998,892
Low Gross Sales: $1,491,238

Average Cost of Proprietary Foam Products as a % of Gross Sales: 5.4%
Average Cost of Goods as a % of Gross Sales: 14.9%
Average Cost of Sales Commissions as a % of Gross Sales: 9.9%
Average Cost of Labor as a % of Gross Sales: 13.3%

Part 4 – Third Quartile

Number of Franchises: 9
Average Number of Territories Per Franchise: 1.6

Average Gross Sales: $1,057,385
Median Gross Sales: $1,083,431
Number and Percentage That Met or Exceeded Average Gross Sales: 6/66%
High Gross Sales: $1,316,987
Low Gross Sales: $741,936

Average Cost of Proprietary Foam Products as a % of Gross Sales: 4.6%
Average Cost of Goods as a % of Gross Sales: 16.3%
Average Cost of Sales Commissions as a % of Gross Sales: 9.4%
Average Cost of Labor as a % of Gross Sales: 12.3%

Part 5 – Fourth Quartile

Number of Franchises: 9
Average Number of Territories Per Franchise: 1.2

Average Gross Sales: $455,891
Median Gross Sales: $432,204
Number and Percentage That Met or Exceeded Average Gross Sales: 3/33%
High Gross Sales: $709,595
Low Gross Sales: $174,348

Average Cost of Proprietary Foam Products as a % of Gross Sales: 3.8%
Average Cost of Goods as a % of Gross Sales: 14.0%
Average Cost of Sales Commissions as a % of Gross Sales: 7.8%
Average Cost of Labor as a % of Gross Sales: 17.4%

“Gross Sales” as used in this Item 19 has the same meaning as “Gross Sales” disclosed 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 client sales.

“Cost of Labor” is the amounts for payroll for installation technicians (excluding benefits).

These costs have been reported to USA Insulation by the franchises from whom the financial information in this Item 19 has been derived. 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 franchise and dividing it against the Gross Sales for that franchise.

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 dollar and the percentages have been rounded to the nearest full percentage point.

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

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

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