Mr. Electric Franchise FDD, Profits & Costs (2025)
Established in 1994, Mr. Electric is a global franchise organization specializing in electrical installation and repair services for both residential and commercial customers. As a subsidiary of the Neighborly® family of service franchises, Mr. Electric has expanded its reach to nearly 200 locations worldwide, earning recognition from Entrepreneur magazine among its “Franchise 500.”
Mr. Electric offers a comprehensive range of services, including electrical installations, repairs, lighting solutions, and energy-efficient upgrades. Their commitment to professionalism, reliability, and safety sets them apart in the industry. Each franchise location operates in compliance with local licensing and trade requirements, ensuring high-quality service delivery.
The company’s dedication to customer satisfaction is further exemplified by the Mr. Electric Advantage Plan™, which provides members with exclusive savings, priority scheduling, and special offers. This focus on exceeding customer expectations has solidified Mr. Electric’s reputation as a trusted provider in the electrical services sector.
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Initial Investment
How much does it cost to start a Mr. Electric franchise? It costs on average between $152,000 – $315,000 to start a Mr. Electric franchised facility.
This includes costs for construction, equipment, tools, and initial operating expenses. The exact amount depends on various factors, including the size of the territory, the location, and whether the franchisee chooses to lease or purchase a facility for operations.
| Type of Expenditure | Amount (Low) | Amount (High) |
|---|---|---|
| Initial Franchise Fee | $42,500 | $42,500 + $425 per 1,000 additional population over minimum |
| Vehicle | $3,500 | $55,000 |
| Equipment, Supplies & Inventory | $12,000 | $20,000 |
| Insurance | $5,000 | $7,500 |
| Advertising, Marketing and Promotional Spending | $30,000 | $60,000 |
| Training, Travel, Lodging & Food | $8,000 | $16,000 |
| Deposits, Permits & Licenses | $1,000 | $2,500 |
| Professional Fees | $0 | $5,000 |
| Real Estate | $0 | $6,000 |
| Additional Funds – 3 Mo. | $50,000 | $100,000 |
| Totals | $152,000 (Does not include real estate costs) | $314,500+ any additional franchise fee + any real estate costs |
Average Revenue (AUV)
How much revenue can you make with a Mr. Electric franchise? A Mr. Electric franchised location makes on average $895,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $626,000 yearly revenue for similar other home services franchises. Below are a few Mr. Electric competitors as a comparison:
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Mr. Electric Franchise Disclosure Document
Frequently Asked Questions
How many Mr. Electric locations are there?
As of the latest data, Mr. Electric operates nearly 200 franchise locations worldwide
What is the total investment required to open a Mr. Electric franchise?
The total investment required to open a Mr. Electric franchise ranges from $152,000 to $315,000.
What are the ongoing fees for a Mr. Electric franchise?
Franchisees of Mr. Electric are required to pay an ongoing royalty fee of 6% of their gross sales. Additionally, they contribute 2% of their gross sales toward marketing, advertising, and promotional efforts. These fees support continuous brand development and provide franchisees with comprehensive marketing strategies to enhance their local presence.
What are the financial requirements to become a Mr. Electric franchisee?
To become a Mr. Electric franchisee, candidates are typically required to have a minimum net worth of $100,000 and at least $65,000 in liquid capital. These financial prerequisites ensure that franchisees possess the necessary resources to effectively establish and operate their businesses.
How much can a Mr. Electric franchise owner expect to earn?
The average gross sales for a Mr. Electric franchise are approximately $0.90 million per location. Assuming a 15% operating profit margin, $0.90 million yearly revenue can result in $135,000 EBITDA annually.
Who owns Mr. Electric?
Mr. Electric is owned by Neighborly, a service-based franchise company. As of 2024, Joel Worthington serves as the President of Mr. Electric.
Disclaimer
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