Mr. Rooter Plumbing

The franchise fee is $42,500 for a minimum territory covering 100,000 people — but in practice, most territories are larger. The actual fee scales at $425 per additional 1,000 population, and in 2024, the average franchise fee paid was $67,046 (range: $42,955–$180,038). If you want a market of 300,000 people — a reasonable mid-size metro area — you're looking at $42,500 + $85,000 in population fees, or roughly $127,500 in franchise fee alone.

The $1,250 Software System Enrollment Fee brings day-one franchisor payments to $43,750 for a minimum territory. The full item 7 investment range of $122,303–$263,800 covers vehicle, equipment, training, and three months of working capital. Vehicles are the big variable: the cost shown in item 7 ($20,220–$69,300) reflects either rebranding an existing vehicle at the low end or purchasing a new fully outfitted work truck at the high end.

Ongoing, the royalty is 6% of gross sales (called 'License Fee'), with minimum fees that kick in at week 40 based on territory population — ranging from $100/week for the smallest markets to $1,400/week for territories over 2M people. The 2% MAP fee adds to that, along with the mandatory $30,000 first-year local marketing spend. The call center program (Neighborly Service Solutions) is mandatory at $349.99–$449.99/month plus $25 per booked appointment.

ServiceTitan licenses are paid directly to ServiceTitan — budget $131/month per office user and $87/month per service professional user on top of the $76/month technology package.

Mr. Rooter discloses revenue data by percentile — a useful but incomplete picture. In 2024, across 188 franchisees reporting a full 52-week year: the top 10% (18 franchisees) averaged $7.76M in gross sales; the top 25% (47 franchisees) averaged $4.98M; the top 50% (94 franchisees) averaged $3.39M.

The flip side: the bottom 50% averaged $625K (median $575K), and the bottom 10% averaged $131K. That bottom-quartile average of $321K represents operators who are likely running one or two vans in a modest territory. For a plumbing business, $321K gross with 6% royalty ($19K), 2% MAP ($6K), mandatory marketing ($30K+), vehicle costs, labor, and materials would be a breakeven or money-losing proposition.

The top-performing territories exceed $20M — these are multi-territory, multi-van operations with commercial plumbing contracts alongside residential work. The $4.9M average for the top quartile suggests operators running 8–15 vans in a well-penetrated market.

No net income figures are disclosed. At a rough 40% net margin before debt service on a $1M revenue base, that's $400K before servicing franchise fees and loan payments — but margins in plumbing vary dramatically with labor efficiency and ticket mix.

Mr. Rooter has shown steady, modest growth: 212 total units at end of 2022 growing to 232 at end of 2024. The system opened 22 franchised locations in 2024 against zero formal terminations. Three company-owned units have been stable.

The 43-state footprint and 14-unit net gain in 2024 suggest a healthy but mature system that is selectively expanding rather than racing for coverage. Transfer activity (16 transfers in 2024) is a positive indicator — profitable businesses get sold at premiums, not given away. Mr. Rooter is in the middle of the Neighborly portfolio in terms of growth trajectory, sitting between the faster-growing Mr. Handyman and the shrinking Molly Maid.

Territory population fee scaling means your actual entry cost depends heavily on the market you're buying. Signing for a 300,000-person metro at $127,500 in franchise fees alone — before any vehicle, equipment, or working capital — is a materially different investment than the $43,750 headline. Get a precise quote for your specific territory before benchmarking against item 7 totals.

The minimum local marketing spend of $30,000 in year one (or 5% of prior-year gross sales thereafter, whichever is greater) sits on top of the 2% MAP fee. At $600K in gross sales, your mandatory marketing spend is $30,000 alone. Combined with the call center program and Reunion fees, total fee overhead beyond royalty can approach 7–8% of revenue.

Plumbing requires licensing in most states — costs and delays vary dramatically. The FDD explicitly notes this as a significant variable. Some states require a master plumber on staff, which affects hiring strategy and labor cost.

The transfer fee is the greater of $15,000 or 5% of the sales price — meaning if you ever sell a high-revenue territory, the transfer fee can be substantial.