- 2023 Franchise 500 Rank
#235 Ranked #242 last year
- Initial investment
$183K - $211K
- Units as of 2023
384 12,700.0% over 3 years
Koala insulation is an insulation contractor franchise that offers residential and commercial insulation services. The company caters to various jobs and applications, such as new construction, retrofitting, and properties compromised by natural disasters. They also offer all types of insulation, from blown-in cellulose to batt insulation and more, with the mission of saving their customers’ energy costs.
Koala Insulation was founded in Melbourne, Georgia, in 2018, and has expanded faster than its original goal. Today, it has opened over 200 territory locations across the U.S. in line with its goal of building a stronger national presence.
Why You May Want To Start a Koala Insulation Franchise
According to the Harvard Joint Center for Housing Studies, at least 26 million homeowners spend on home improvement each year. Many single-family homes in the country are wasting money and energy due to under-insulation. With a Koala Insulation franchise working on both newly constructed and existing structures, it may be safe to say that the insulation industry is well insulated.
So if you’re seeking a business opportunity with a solid model, you might consider a Koala Insulation franchise. As a franchisee, you may find yourself moving in an environment of technical superiority, trust, communication, efficiency, courtesy, and accountability. If you think these ideals are worth practicing and you are willing to put in the work, a Koala Insulation franchise could represent the opportunity you’ve been waiting for.
What Might Make a Koala Insulation Franchise a Good Choice
Multiple features make a Koala Insulation franchise unique from its competitors, beginning with its reasonably priced services, including free insulation evaluations. There may be no requirement for any industry knowledge or skills. A dedicated team will be around you to guide you in setting up and running your business starting from the ground up.
To be part of the Koala Insulation franchise, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.
Koala Insulation has partnered with third-party financial lenders that may help you cover the franchise fee, startup, equipment, inventory, accounts receivable, and payroll if you qualify.
How To Open a Koala Insulation Franchise
As you decide if opening a Koala Insulation franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Koala Insulation franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement with Koala Insulation, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Koala Insulation franchising team questions.
About Koala Insulation
|Franchising Since||2020 (3 years)|
|# of employees at HQ||27|
This company is offering new franchisees throughout the US.
|# of Units||384 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Koala Insulation franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$182,558 - $210,507|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|10% off franchise fee|
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Koala Insulation has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||16 hours|
|Classroom Training||40 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Koala Insulation? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Koala Insulation landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Koala Insulation ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Koala Insulation.
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