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MR. ROOTER
Mr. Rooter franchises provide residential and commercial plumbing and repair services, including sewer, drain and pipe cleaning, septic tank pumping, water heater replacement, video pipe inspection, line and leak detection, excavation and repair/relining of sewer lines, repair of water and gas lines, grease trap pumping, portable toilet rental and maintenance, and sales/service of private sewage systems, water-based heating systems, water treatment systems, and lawn sprinkler systems, along with other related services and products under specific standards. The business model offers start-up franchises or conversions of existing businesses to entrepreneurs, who serve homeowners and businesses requiring plumbing solutions. As part of the Neighborly brand family, it targets markets needing reliable, branded home service expertise.
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Franchise Costs
6% royalty + 2% ad fund + $76/mo software system + $350-$450/mo call center
Financial Performance
Item 19 Financial Performance
Data Based On: 188 franchised businesses in operation and reporting sales for the entire Reporting Period (January 1, 2024 to December 31, 2024)
* The overall average gross revenue ($2,009,644) and median gross revenue ($1,270,728) were directly extracted from the '100%' row in the provided table, which represents all 188 franchised businesses. The revenue for the top quartile ($4,980,481) was taken from the 'Top 25%' row's 'Average Gross Sales'. The revenue for the bottom quartile ($320,780) was taken from the 'Bottom 25%' row's 'Average Gross Sales'. No explicit gross profit, net income, net profit, EBITDA, or expense data was provided, so related fields and profit estimations are null. The overall average was verified by calculating the weighted average of the Top 50% and Bottom 50% segments: (94 units * $3,394,156 + 94 units * $625,132) / 188 total units = $2,009,644, which matches the reported overall average.
Extracted Item 19 Section
Avg. Revenue: $2,009,644
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Unlock financial performance dataMR. ROOTER Franchise Analysis
Plumbing demands don't quit, and Mr. Rooter's position in the Neighborly family hints at a polished home services play. Item 19 lays out revenue data that catches eyes in this essential trade, while SBA financing records and low termination counts suggest a stable backbone. But with transfers outpacing new builds, is the system's momentum carrying franchisees forward or masking churn?
Item 7 pins initial investment at $122,303-$263,800, covering vehicles, tools, and marketing for startup or conversion models—flexible for plumbers eyeing branding. Franchise fee hits $42,500, with 6% royalties, 2% ad fund, plus $76/month software and $350-$450/month call center fees that add up in year one. Item 19 shines: average gross sales $2,009,644, median $1,270,728 across 229 locations (3 corporate), painting high-volume potential for territories serving residential and commercial clients like sewer repairs and water heaters.
System grew 7% from 215 to 229 units (2023-2024), projecting 14 new openings amid 16 transfers and just 4 terminations/2 non-renewals—healthier than many services brands. SBA data bolsters: 63 loans averaging $355,027, 4.8% default rate signals franchisees access capital without high risk. Litigation flags post-termination covenants and a territory spat, but KKR-backed Neighborly's scale (since 1993) means vetted ops; weigh if $2M topside revenue justifies fees for your market.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How MR. ROOTER Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
MR. ROOTER Current | $122K – $264K | $43K | 6.0% | 229 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 198 franchises | $121K – $289K | $47K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+29 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for MR. ROOTER franchisees (2011 – 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.
63 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
125 franchisee contacts on file from official FDD filings.
125 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Post-termination noncompetition covenant enforcement, trademark misuse, and counterclaims for breach of contract, fraud in inducement, and territory encroachment with a former franchisee.
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 MR. ROOTER franchise ranges from $122,303 to $263,800. This includes a franchise fee of $42,500. Ongoing royalty fees are 6.0% of gross sales.
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