ROTO-ROOTER

Franchising since 1936 under parent Chemed Corporation, Roto-Rooter now counts 337 franchise locations alongside 116 corporate-owned units, reflecting slow but enduring expansion rather than explosive growth. The 2025 FDD's Item 20 reveals just 3 terminations—exceptionally low, signaling strong unit retention and few outright failures. System transfers number 13, indicating some ownership changes but no mass exodus, while 15 SBA loans averaging $557,967 underscore franchisees' willingness to borrow big for territories. This trajectory points to a mature, stable system that's contracted zero net units recently, ideal for risk-averse investors seeking proven longevity over hype-driven scaling.

Financials demand scrutiny: initial franchise fee hits $25,000 (ranging $25K-$75K by territory), with monthly royalties scaling wildly from $545 to $36,000+ via population-based formula, plus local ad contributions of 10.84¢-13.47¢ per capita annually. No Item 19 disclosure is a glaring red flag—without validated earnings data, you're blind to average revenues or profits, forcing reliance on anecdotal calls. High SBA averages suggest substantial startup capital beyond fees (full investment unspecified but implied hefty for service rigs), and variable royalties could crush margins in low-density areas. For hands-on operators eyeing recession-resistant plumbing services, the exclusive territories shine, but opaque earnings and fee volatility make this a cautious bet—veteran stability without guaranteed windfalls.