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Koala Insulation
Koala Insulation franchises specialize in providing insulation evaluation, removal, installation, and related services using proprietary equipment known as Koala Rigs, along with standardized business procedures, training, and support from the franchisor. The business operates under the Koala Insulation brand and marks, targeting homeowners, commercial building owners, and industrial clients needing insulation solutions for residential and commercial facilities. Franchisees follow a system that includes operations, accounting, inventory control, and advertising programs.
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Franchise Costs
6.5% tiered royalty (down to 3.5%) + 1% brand fund + $344/mo technology fee + $350/mo bookkeeping fee (up to $500/mo)
Financial Performance
Item 19 Financial Performance
Data Based On: 249 franchised territories operated by 56 Reporting Franchisees that had been open and operating on a full-time basis for at least two full years as of December 31, 2024.
* Average Gross Revenue, Median Gross Revenue, and Average Gross Profit were calculated per territory based on the provided data for 56 Reporting Franchisees operating 249 territories in the 2024 Calendar Year. The average number of territories per franchisee was 249 territories / 56 franchisees = 4.4464. The per-franchisee figures were then divided by this average to derive per-territory figures. - Average Gross Revenue (per territory) = $1,265,597 / 4.4464 = $284,632. - Median Gross Revenue (per territory) = $1,054,869 / 4.4464 = $237,240. - Average Gross Profit (per territory) = $614,661 / 4.4464 = $138,237. No specific net income, net profit, or EBITDA figures were provided. Best guess profit range could not be reliably estimated due to unquantified significant expenses such as owner's compensation, sales personnel compensation, and additional administrative staff compensation, which are explicitly stated to be excluded from the presented operating expenses.
Extracted Item 19 Section
Avg. Revenue: $284,632
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Unlock financial performance dataKoala Insulation Franchise Analysis
A shrinking network despite aggressive expansion plans grabs attention first: Koala Insulation's locations fell from 392 in 2024 to 333 in 2025, per Item 20. Item 19 revenue disclosures paint a picture of variability, while litigation whispers of territory and training disputes add intrigue. Can this home services play rebound for your investment?
Item 7 details the financial entry: initial franchise fee of $49,500 within a total investment of $194,885-$241,736, covering Koala Rigs and setup. Ongoing fees hit hard—6.5% tiered royalty (down to 3.5% at scale), 1% brand fund, plus fixed $344/month tech and $350/month bookkeeping (up to $500). Item 19 reveals average gross revenue of $284,632 and median $237,240 across units, suggesting top performers boost the average but many hover lower—no profit figures disclosed, so EBITDA likely 15-20% in services means $35K-$50K owner earnings at median, assuming tight costs.
System health shows strain: 85 terminations signal early exits, 30 transfers indicate resale activity, yet 37 projected new units aim for growth. SBA data shines with 86 loans averaging $219,326 and a low 4.7% default rate, better than many peers. Recent arbitration over misrepresentations and covenants (Item 3) warrants scrutiny, but Empower Brands' backing and post-2020 franchising youth explain volatility—this isn't a mature cash cow, but a high-risk, services bet with revenue potential if you nail territories.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Koala Insulation Compares
Key Insights
- Higher investment than 84% of Home Improvement franchises
- #2 largest franchise system in Home Improvement
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Koala Insulation Current | $195K – $242K | $50K | 6.5% | 333 |
| BUDGET BLINDS | $101K – $211K | $20K | 3.5% | 1,366 |
| Five Star Bath Solutions | $162K – $334K | $60K | 6.0% | 306 |
| CERTA PROPAINTERS | $171K – $321K | $65K | N/A | 303 |
| FCI | $184K – $249K | $55K | 5.0% | 288 |
| That 1 Painter | $113K – $189K | $59K | 6.0% | 265 |
Home Improvement Average 64 franchises | $139K – $246K | $51K | 6.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 64 Home Improvement franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+24 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Koala Insulation franchisees (2021 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
86 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
128 franchisee contacts on file from official FDD filings.
128 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Arbitration and lawsuit with one franchisee (Salim Makhlouf/Lotus & The Rooster Holdings) involving claims of misrepresentations in territory sales, inadequate training, breach of franchise agreements, unpaid royalties, and enforcement of restrictive covenants and post-term obligations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Koala Insulation franchise ranges from $194,885 to $241,736. This includes a franchise fee of $49,500. Ongoing royalty fees are 6.5% of gross sales.
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