TEGG

Franchising since 1993, TEGG grew modestly from 47 locations in 2023 to 49 in 2024—a 4% increase—with 4 projected new units signaling cautious optimism rather than aggressive expansion. Just 1 termination underscores healthy retention, and a single SBA loan averaging $500,000 suggests limited but existent financing support, possibly for scaling within territories. Item 7 outlines initial investment from $96,280 to $229,384, including a steep $75,000 franchise fee; ongoing fees feature tiered royalties starting at 4.5% on the first $700K gross revenues, dropping to 2.5%, plus minimums from $2,900 monthly—no marketing fund eases some burdens but adds $75 per TEGGPro customer and training costs at $1,000/day.

Without Item 19, earnings remain opaque, a notable red flag for investors craving validated revenue or profit benchmarks in this B2B service model targeting multifamily and institutional clients. The tiered structure incentivizes growth beyond $700K, but high minimums could strain underperformers, especially in light industrial setups with existing facilities. Backed by ABM, TEGG offers proprietary tools and software for competitive edge, yet sluggish growth post-30 years questions scalability—ideal for experienced electrical contractors, but riskier for newcomers without hard financials.