About Generator Supercenter Franchise
Generator Supercenter's 2025 filings represent the latest expansion phase for this standby generator franchise, which has been growing since 2017 under Generator Supercenter, Inc.
The brand continues to build on its position as a leading franchise in the backup power industry, offering whole home and commercial generator systems from top manufacturers.
The franchise fee is $50,000.
Generator Supercenter Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Revenues from generator and generator installation sales. 6% of Gross Revenues from maintenance, options, service sales, supplier rebate programs and all other sales, revenue and income of every kind and nature. Subject to a minimum royalty of $2,000 per month. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of monthly Gross Revenues, currently none | National brand fund |
| Total Investment Range | $474,950 – $868,250 | Includes build-out, inventory, working capital |
The investment range of $475K–$868K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Revenues from generator and generator installation sales. 6% of Gross Revenues from maintenance, options, service sales, supplier rebate programs and all other sales, revenue and income of every kind and nature. Subject to a minimum royalty of $2,000 per month.) and marketing fee (Up to 1% of monthly Gross Revenues, currently none) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Real Estate / Rent | $11,000 | $25,000 |
| Utilities | $700 | $1,500 |
| Leasehold Improvements | $78,000 | $200,000 |
| Initial Marketing Plan | $25,000 | $25,000 |
| Furniture, Fixtures, and Equipment | $15,000 | $50,000 |
| Computer Systems/Equipment and Software | $4,250 | $8,250 |
| Insurance | $3,000 | $6,000 |
| Vehicles | $54,500 | $89,000 |
| Signage | $9,000 | $20,000 |
| Office Expenses | $2,000 | $2,500 |
| Inventory / Stock | $115,000 | $140,000 |
| Licenses and Permits | $2,000 | $4,000 |
| Dues and Subscriptions | $1,000 | $2,000 |
| Professional Fees (lawyer, accountant, etc.) | $1,500 | $5,000 |
| Travel, lodging and meals for initial training | $3,000 | $6,000 |
| Home generator for Franchisee | $0 | $14,000 |
| Additional funds (for first 3 months) | $100,000 | $220,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 100% of our then-current Franchise Fee |
| Renewal Fee | 50% of our then-current Franchise Fee |
| Technology Fee | Currently $750 per month |
| Audit Fee | All of our costs and expenses, but not less than $500 |
| CRM Software Fee | Currently $40 to $105 per user per month |
| Non-Compliance Fee | $250.00 (and $250 per week if ongoing) |
| Customer Complaint Resolution Fee | Our expenses |
| Inspection Fee | Currently, $300 per day plus our expenses |
| Insurance | Cost of insurance plus a 25% administrative fee |
| Collection Costs, Attorneys’ Fees and Interest | Lesser of 18% interest per year or the highest lawful interest rate, plus all reasonable attorneys’ fees, arbitration costs, court costs and collection expenses |
| Bank Charges and Administrative Costs | Our then-current fees |
| Indemnification | Amount of loss or damages plus costs |
| Initial and Additional Training | $500 prior to training, balance upon invoice (initial); $2,500 per person (additional initial); $500 per day plus our reasonable costs including travel, lodging and meals (other training) |
| De-Identify Premises | Costs plus reasonable administrative fee |
| Step-in Rights Fee | 10% of the Franchised Business’ monthly Gross Revenues (subject to a monthly minimum fee of $6,000) |
| Liquidated Damages for Early Termination | An amount equal to the average of the monthly Royalty Fees paid (or payable) over the past 12 months times the number of full calendar months remaining in the term of the Franchise Agreement at the time of termination |
| Product Testing and Supplier Evaluation | $500 plus our out of pocket expenses (product/supplier); $5,000 plus our out of pocket expenses (realtor evaluation) |
| Relocation Fee | Our then-current fee (currently $5,000) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training is expected to last 5 days. Factory Service Training generally can be completed within 3 days. |
| Classroom Training | 40 |
| On-the-Job Training | 24 |
| Training Location | Tomball, Texas, or another location as designated by the franchisor. Factory Service Training is offered in Waukesha, WI or other locations designated by Generac. |
| Additional Training | Additional initial training is $2,500 per person. Other on-site training is $500 per day plus reasonable costs including travel, lodging and meals. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Protected areas vary in size depending on population density and other demographic factors, including: the population base; growth trends of population; apparent degree of affluence of population; the density of residential and business entities; location of competing businesses and major and restricting topographical features which clearly define contiguous areas, such as rivers, mountains, major freeways and underdeveloped land areas. |
| Description | Franchisee operates within a Protected Area defined by zip codes or geographical boundaries. The franchisor will not own, operate, franchise, or license any other Generator Supercenter business location within the Protected Area if the franchisee is in compliance with the Franchise Agreement and performance requirements. However, the franchisor reserves rights to distribute products/services through other channels, operate businesses under different trade names, and manage National Accounts within and outside the Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 1 additional 10-year term |
| Renewal Fee | 50% of our then-current Franchise Fee |
| Renewal Conditions | Franchisee must provide written notice of election to renew 12-18 months prior to expiration, have rights to occupy premises for 10 years (or secure substitute), complete all required maintenance/refurbishing, not be in default and substantially comply with agreements, satisfy all monetary obligations, execute the then-current Franchise Agreement, satisfy current training requirements, pay the renewal fee, and execute a general release of claims. The new agreement may have materially different terms and fees. |
| Transfer Fee | 100% of our then-current Franchise Fee |
| Transfer Conditions | Approval is conditioned upon satisfaction of all monetary obligations to franchisor/affiliates/suppliers, timely cure of all existing defaults, execution of a general release, agreement to complete required repairs/remodeling, and providing a copy of the executed purchase agreement. The proposed transferee must meet franchisor's standards, possess good moral character, business reputation, credit rating, aptitude, adequate financial resources, and complete initial training. The franchisor has a right of first refusal for transfers of 20% or more interest. |
| Termination for Cause | The franchisor has the right to terminate the Franchise Agreement with cause. Curable defaults (7, 15, or 30-day cure periods) include failure to comply with Proprietary Marks, failure to pay sums owed, or failure to comply with other provisions. Non-curable defaults include criminal acts, felony conviction, fraud, misrepresentation in application, bankruptcy, insolvency proceedings, subject of a lien, becoming insolvent, material breach of other agreements, intentional underreporting/misstatement, abandonment, failure to open business, loss of premises, failure to meet System standards creating health/safety threat, violation of health/safety laws, failure to comply with in-term covenants, unauthorized use of Confidential Information, failure to maintain insurance, and unauthorized transfer. |
| Non-Compete Period | 2 years following the date of the expiration and non-renewal, transfer or termination of the Franchise Agreement |
| Non-Compete Details | Franchisee, its equity owners, and immediate family members are restricted for 2 years post-termination/expiration/transfer from owning, engaging in, being employed by, or having any interest in a competing business within 10 miles (or maximum allowed by law) of their former franchised business or other Generator Supercenter locations. They are also restricted from soliciting business from former clients for competitive purposes or having interest in companies granting competing franchises. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor recommends that the franchisee (or Operating Principal) personally participate in the operation. The Operating Principal must be an equity owner of at least 10% and have authority for operational decisions. If the Operating Principal does not participate day-to-day, a General Manager must be approved by the franchisor and be responsible for direct on-premises supervision. Both the Operating Principal and General Manager must complete the training program. |
| Required Suppliers | Franchisee must purchase all products and services, including technology, software, furniture, fixtures, displays, computers, equipment, inventory (including all generators, parts and related equipment) and products containing the Proprietary Marks and other specified items exclusively in accordance with franchisor standards and specifications. Franchisee must use a generator performance monitoring system designated by the franchisor. These items must be purchased from the franchisor or designated suppliers. The franchisor reserves the right to designate itself, its parent, or an affiliate as the only approved supplier for required items. |
| Supply Restrictions | Franchisee may have to buy or lease items from the franchisor or a limited group of designated suppliers, which may be more expensive than similar items available elsewhere. The franchisor reserves the right to designate itself, its parent, or an affiliate as the exclusive approved supplier for required items. Franchisee cannot purchase items requiring approval from unapproved suppliers without written notification of approval from the franchisor. |
| Franchisor Revenue from Suppliers | In 2024, the franchisor's total revenues were $12,832,575. Approximately 22.52% ($2,889,301) of total revenues were received from approved suppliers based on their sales or leases to franchisees. Additionally, approximately 1.04% ($133,114) of total revenues came from direct sales to franchisees, and the parent and affiliates derived $19,469.21 from such sales to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, leases or other obligations. |
Generator Supercenter Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Generator Supercenter Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Generator Supercenter System Growth
Generator Supercenter currently operates 61 franchised locations and 8 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 17 | 0 | 48 |
| 2023 | 13 | 0 | 61 |
| 2024 | 11 | 5 | 69 |
Transfers: 2 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Carr, Riggs & Ingram, L.L.C. for year ending December 31st.
Generator Supercenter Franchise — FAQ
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