USA Insulation Franchise FDD, Profits & Costs (2025)

USA Insulation, established in 1985, is a leading provider of residential and commercial insulation services in the United States. Headquartered in Cleveland, Ohio, the company has been dedicated to enhancing energy efficiency and comfort for homeowners and businesses nationwide.

In 2006, USA Insulation began offering franchise opportunities, enabling entrepreneurs to join their mission of delivering premium insulation solutions.

The company specializes in a range of insulation services, including their proprietary USA Premium Foam® Insulation, blown-in attic insulation, spray foam insulation, and air sealing.

Their flagship product, USA Premium Foam® Insulation, boasts an R-Value of 5.1 per inch, which is as much as 35% higher than other conventional insulation products. This high-performance foam is designed to fill wall cavities completely, providing superior thermal resistance and contributing to significant energy savings.

Initial Investment

How much does it cost to start a USA Insulation franchise? It costs on average between $266,000 – $410,000 to start a USA Insulation franchised center.

This includes costs for equipment, insulation materials, operational setup, and initial marketing expenses. The exact amount depends on various factors, including the territory size, the location, and whether the franchisee chooses to lease or purchase a facility for operations.

Type of ExpenditureAmount
Initial Franchise Fee$45,000 to $55,000
Real Property$12,000 to $24,000
Leasehold Improvements$12,000 to $15,000
Insulation Truck and Upfit$100,000 to $110,000
Equipment$5,000 to $15,000
Office Supplies, Fixtures & Signs$8,000 to $14,000
Professional Fees$500 to $5,000
Deposits$2,000 to $10,000
Opening Inventory$14,000 to $30,000
Initial Marketing Spend$29,000 to $67,000
Training and Travel Expenses$4,000 to $9,000
Insurance$4,000 to $6,000
Additional Funds – 3 months$30,000 to $50,000
TOTAL$265,500 to $410,000

Average Revenue (AUV)

How much revenue can you make with a USA Insulation franchise? A USA Insulation franchised business makes on average $1,139,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

 USA Insulation fdd item 19 extract

This compares to $703,000 yearly revenue for similar other home services franchises. Below are a few USA Insulation competitors as a comparison:

USA Insulation franchise competitors

Franchise Disclosure Document

Frequently Asked Questions

How many USA Insulation locations are there?

As of the latest data, USA Insulation operates a total of 127 locations across the United States. This includes both company-owned and franchised units. The company has experienced significant growth, with a 101.6% increase in units over the past three years

What is the total investment required to open a USA Insulation franchise?

The total investment required to open a USA Insulation franchise ranges from $266,000 to $410,000.

What are the ongoing fees for a USA Insulation franchise?

USA Insulation franchisees pay a royalty fee of the greater of 5% of monthly gross sales or $1,000 per month. They also contribute to the Brand Fund with a fee of the greater of 2% of monthly gross sales or $500 per month to support national marketing efforts.

What are the financial requirements to become a USA Insulation franchisee?

To become a USA Insulation franchisee, candidates are typically required to have a minimum net worth of $300,000 and at least $100,000 in liquid capital. These financial prerequisites ensure that franchisees possess the necessary resources to establish and operate their franchise successfully.

How much can a USA Insulation franchise owner expect to earn?

The average gross sales for a USA Insulation franchise are approximately $1.14 million per location. Assuming a 15% operating profit margin, $1.14 million yearly revenue can result in $171,000 EBITDA annually.

Who owns USA Insulation?

USA Insulation is owned by Threshold Brands, a company that manages a portfolio of home service franchises. Each USA Insulation franchise location is independently owned and operated.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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