About Mr. Rooter Franchise
Mr.
Rooter is a full service plumbing franchise offering residential and commercial plumbing repair, sewer and drain cleaning, septic tank pumping, water heater replacement, video pipe inspection, and a wide range of related services.
Part of the Neighborly family of brands under Neighborly Assetco LLC, Mr.
Mr. Rooter Franchise Cost & Fees
Minimum Investment
$80K
Average Investment
$134K
Maximum Investment
$187K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% to 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum MAP fees apply. | National brand fund |
| Total Investment Range | $79,975 – $187,140 | Includes build-out, inventory, working capital |
The investment range of $80K–$187K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% to 7% of Gross Sales) and marketing fee (2% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum MAP fees apply.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Vehicle | $2,975 | $29,250 |
| Equipment, Supplies & Inventory | $10,000 | $40,000 |
| Insurance | $1,400 | $2,700 |
| Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase | $7,500 | $15,000 |
| Training, Travel, Lodging & Food | $2,950 | $5,950 |
| Deposits, Permits & Licenses | $0 | $1,000 |
| Professional Fees | $0 | $5,000 |
| Additional Funds – 3 Mo. | $15,000 | $35,000 |
| Technician Training | $150 | $1,240 |
| Real Estate | $0 | $12,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the sales price |
| Renewal Fee | $5,000 |
| Technology Fee | $53 per month, plus additional Microsoft Office365 Exchange email accounts ($4.00, $8.00, or $20.00 per month depending on account type). Any support or maintenance on the Point of Sale system (currently ServiceTitan) is provided at our then-current hourly rates (currently $125 per hour). |
| Audit Fee | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees |
| Late Fees (on Software System Monthly Fees) | $25 per month or the maximum amount allowed under the law, whichever is less. |
| Local Marketing Groups | Not to exceed 3% of Gross Sales |
| Annual Convention (“Reunion”) Fees | Currently $1,000 or less |
| Late Fees (Franchise Agreement) | $10 per day |
| Dishonored Check or ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Amendment Fee | $250 |
| Key Accounts/Management Fee | Up to 5% of total Gross Sales related to Key Account work |
| Additional Training Fees | Up to $1,000 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Phase I: minimum of 15 hours over 1-3 weeks. Phase II: generally 10 days, split into two sessions (Business and Systems). Field training: approximately 1-5 days. |
| Classroom Training | 28.4 hours |
| On-the-Job Training | 8-40 hours |
| Training Location | Offices in Waco, TX or virtual training |
| Additional Training | Franchisees must attend annual training/conference events ("Reunion") and any other designated training. Refresher or advanced training may be required if the franchisor determines the franchisee is not current on System aspects. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | minimum population of at least 100,000 and a maximum population of no more than 2,500,000 |
| Description | Franchisees receive a designated territory with limited protection, meaning the franchisor will not operate or grant another Mr. Rooter franchise within that territory. However, the territory is not exclusive, and competition may arise from other franchisor-owned outlets, affiliates, or third parties operating under different trademarks or through different distribution channels. The franchisor reserves the right to advertise, solicit, and enter into Key Accounts within the franchisee's territory, and may authorize others to perform services in the territory under certain conditions. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, franchisees must not be in default, satisfy all monetary and material obligations, be in good standing, have received no more than 3 written default notices, provide written notice of intent to renew, sign a general release, pay the renewal fee, complete current training requirements, and sign the then-current franchise agreement. |
| Transfer Fee | The greater of (i) $7,500 or (ii) 5% of the sales price |
| Transfer Conditions | Franchisor consent is required and will not be unreasonably withheld if conditions are met: assignee meets current requirements and signs a new agreement, all amounts owed to franchisor/affiliates/suppliers are paid, all required reports are provided, owners/guarantors sign a general release, assignee assumes customer obligations, and assignee completes training. The franchisor has a right of first refusal. |
| Termination for Cause | The franchisor can terminate for cause, including material misrepresentation, voluntary abandonment (7+ consecutive days), business closure for safety reasons, unauthorized use of Marks/Confidential Information, insolvency, felony conviction, intentional understatement of Gross Sales (or 2% variance on audit), unauthorized transfer, or a second default of any type within 12 months. Cure periods are generally 30 days, 10 days for monetary/reporting defaults, and 24 hours for goodwill/health/safety impairments. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement and for two years after expiration or termination, franchisees (including owners, spouses, children, parents, or siblings) cannot have any interest in a Competitive Business within the Territory, a 25-mile radius of the outer boundary of the Territory, or inside the territory of another Mr. Rooter Business. A "Competitive Business" offers products/services similar to or competing with the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, you must directly perform or supervise the operation of the Business. If a legal entity, a designated owner who has successfully completed training must directly supervise the Business. This individual must be a bona fide manager. All persons with 5% or more ownership interest in a legal entity franchisee must personally guarantee performance. Owners and managers must sign confidentiality agreements. Franchisees cannot have an interest or relationship with any competitors. |
| Required Suppliers | Franchisees must purchase business management software (currently ServiceTitan) from ServiceTitan, Inc. and a Technology Package (Qvinci, NPS product, FranConnect, Microsoft Office365 E1/Exchange email accounts) from the franchisor's designee (ZorWare). All advertising and promotional materials, signs, and other designated items must bear the Marks as specified by the franchisor. The franchisor reserves the right to designate a primary or single source for certain products and supplies, which may be the franchisor or its affiliates. Franchisees are also required to use a designated service provider for call center, call routing, and scheduling services. |
| Supply Restrictions | Franchisees may purchase from other suppliers if they follow the franchisor's supplier approval procedures and obtain prior written approval. This process may require samples for testing and payment of associated costs. The franchisor reserves the right to revoke approval if suppliers fail to meet current criteria. |
| Franchisor Revenue from Suppliers | In 2020, ProTradeNet’s predecessor PTNLLC had revenue of $1,182,426 (13% of total revenues) from Mr. Rooter franchisee purchases. ZorWare had revenue of $141,113 (2.25% of total revenues) from franchisee purchases for initial training and maintenance and monthly support. Predecessor had revenue of $353,803 (1.45% of total revenues) from franchisee purchases from approved suppliers or under Predecessor’s specifications. The franchisor or its affiliates may receive commissions from the brokerage of capital leases or other equipment finance. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may finance a portion of the initial franchise fee for qualified prospective franchisees, up to 70% (or 80% in some cases) of the initial franchise fee. Financing decisions are based on credit-worthiness and available collateral. Interest rates are tiered based on credit score: Under 600 (12%), 600-649 (11%), 650-699 (10%), 700 or more (9%). Monthly payments begin approximately 2 months after Phase I Training, with repayment terms generally ranging from up to 5 years for loans less than $45,000 to 9 years for loans greater than $150,000. A security interest in the franchise assets is required, and personal guarantees from owners and spouses may be required. The franchisor may also refer franchisees to third-party lenders. |
Mr. Rooter Franchise Earnings — Item 19
Average Revenue
$1.5M
Median Revenue
$1.0M
Sample Size
200 units
Past financial performance does not guarantee future results. Individual results will vary.
Mr. Rooter Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mr. Rooter System Growth
Total Units
214
Franchised
214
Company-Owned
0
Mr. Rooter currently operates 214 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 16 | 13 | 200 |
| 2019 | 15 | 9 | 206 |
| 2020 | 17 | 9 | 214 |
Transfers: 7 | Closures: 9
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$270.0M
Net Income
$-5,341,000
Total Assets
$1361.0M
Audited by BDO USA, LLP for year ending December 31.
Mr. Rooter Franchise — FAQ
The total investment to open a Mr. Rooter franchise ranges from $79,975 to $187,140, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Mr. Rooter charges a royalty fee of 5% to 7% of Gross Sales of gross sales, plus a 2% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum MAP fees apply. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mr. Rooter Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Mr. Rooter to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Mr. Rooter franchise owners report average revenue of $1.5M and median revenue of $1.0M. This is based on a sample of 200 units. Past performance does not guarantee future results.
Mr. Rooter has been franchising since 1993. The FDD shows an investment range of $79,975-$187,140, a 5% to 7% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $79,975 to $187,140 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Home Services Franchises
Interested in Mr. Rooter?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Mr. Rooter and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Mr. Rooter or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com