Mr. Rooter Franchise FDD, Profits & Costs (2025)

Mr. Rooter is a plumbing and drain cleaning franchise that began in 1968 and started franchising in 1972. It is based in Waco, Texas, and is a member of the Neighborly group of home service franchises. The franchise was established to provide detailed and professional plumbing services to both homes and businesses.

Mr. Rooter sets itself apart by integrating advanced technology and exclusive operational systems to enhance efficiency and customer service. It offers unique services such as trenchless sewer line repairs, which are less invasive and not commonly available from independent plumbing services.

The company also provides robust support for franchisees, including comprehensive training, marketing support, and operational guidelines. This backing helps ensure uniform quality and service standards across all locations, facilitating franchisee success in a competitive market.

Initial Investment

How much does it cost to start a Mr. Rooter franchise? It costs on average between $122,000 – $264,000 to start a Mr. Rooter franchised center.

This includes costs for setting up infrastructure, purchasing tools and equipment, initial inventory, and covering initial operating expenses. The exact amount varies depending on factors such as the scale of services offered, the location, and whether the franchisee decides to lease or buy the property.

Type of ExpenditureAmount
Initial Franchise Fee$42,500 + $425 per 1,000 additional population over minimum
Software System Enrollment Fee$1,250
Vehicle$20,220 – $69,300
Equipment, Supplies & Inventory$25,000 – $40,000
Insurance$1,000 – $4,200
Advertising & Promotional and Local Marketing Spending$7,500 – $25,000
Training, Travel, Lodging & Food$3,100 – $7,550
Deposits, Permits & Licenses$350 – $4,000
Professional Fees$1,500 – $8,000
ServiceTitan Software$383 – $2,000
Real Estate$4,500 – $20,000
Additional Funds – 3 Mo.$15,000 – $40,000
Total$122,000 – $264,000

Average Revenue (AUV)

How much revenue can you make with a Mr. Rooter franchise? A Mr. Rooter franchised business makes on average $1,276,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Mr. Rooter fdd item 19 extract

This compares to $1,072,000 yearly revenue for similar plumbing/hvac franchises. Below are a few Mr. Rooter competitors as a comparison:

Mr. Rooter Franchise competitors

Mr. Rooter Franchise Disclosure Document

Frequently Asked Questions

How many Mr. Rooter locations are there?

As of the latest data, Mr. Rooter operates a total of 218 locations. This includes 215 franchised units and 3 company-owned units, reflecting its widespread presence and focus on franchise-based expansion.

What is the total investment required to open a Mr. Rooter franchise?

The total investment required to open a Mr. Rooter franchise ranges from $122,000 to $264,000.

What are the ongoing fees for a Mr. Rooter franchise?

As of the latest data, Mr. Rooter franchisees are required to pay a royalty fee of 6% of their gross sales. Additionally, they contribute 2% of their gross sales to the Marketing, Advertising, and Promotion (MAP) fund. Franchisees may also be required to participate in Local Marketing Groups, with contributions not exceeding 3% of gross sales.

What are the financial requirements to become a Mr. Rooter franchisee?

To become a Mr. Rooter franchisee, candidates should have a minimum net worth of $250,000 and at least $100,000 in liquid capital. These financial requirements ensure that franchisees are well-prepared to manage initial expenses and sustain operations effectively.

How much can a Mr. Rooter franchise owner expect to earn?

The average gross sales for a Mr. Rooter franchise are approximately $1.28 million per location. Assuming a 15% operating profit margin, $1.28 million yearly revenue can result in $192,000 EBITDA annually.

Who owns Mr. Rooter?

Mr. Rooter is owned by Neighborly, a family of home services franchise brands.

Disclaimer

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