- 2023 Franchise 500 Rank
#129 Ranked #131 last year
- Initial investment
$81K - $191K
- Units as of 2022
245 13% over 3 years
Feeling drained of pointless plumbing services? Mr. Rooter is one of the most well-known services for all your plumbing needs!
With more than 200 Mr. Rooter franchises spread across the United States and parts of Canada, as well as over 50 locations internationally, Mr. Rooter is a plumbing business founded in 1968. The franchise provides sewer cleaning, plumbing, and drain cleaning services for homes and businesses. It is headquartered in Waco, Texas, and has been franchising since 1972. It is under the direction of parent company Neighborly brand.
Even existing plumbing businesses may be able to join the Mr. Rooter franchise empire by rebranding. The company is also known to give special discounts to veterans who want to be franchisees.
Why You May Want to Start a Mr. Rooter Franchise
Mr. Rooter is well-known as a leader in plumbing and drain cleaning services. It is one of the largest plumbing services franchises in the U.S.. Being a part of Neighborly, you may be guaranteed customer referrals and leads, which could result in more stability for your franchise.
If you already have a plumbing franchise, rebranding it as a Mr. Rooter franchise could take it to the next level as it may be a great opportunity to make your business grow with the backing of a recognized brand name.
The good thing with Mr. Rooter is you may not need to be a trained plumber to become a franchisee. As a franchisee, you only need to hire trained plumbers to join your crew.
What Might Make a Mr. Rooter Franchise a Good Choice?
There has been tremendous growth in the plumbing industry over the years. With developments in real estate, homeowners and commercial agents constantly need professionals to work their drains and provide plumbing services. Investing in a known brand like Mr. Rooter will help you provide high-quality results.
To be part of the Mr. Rooter team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees.
Marketing a business may be the best way to create a reliable client base. Mr. Rooter offers marketing materials and strategies to help you market your location. They'll create a franchise website, newsletter, and social media page. They can also help you plan a grand opening to put your business on the map.
How To Open a Mr. Rooter Franchise
To get started, you may need to submit a franchise inquiry form. A franchise developer in your area may contact you to answer all your questions pertaining to your possible Mr. Rooter franchise. They can help you identify a suitable location for your plumbing business once you decide to go ahead with Mr. Rooter.
If your request is approved, you may be invited to company headquarters in Waco, Texas. Here, you can familiarize yourself with the business model and explore your options with the help of a business coach. The next step is signing the franchise agreement. You'll attend on-the-job training and classroom sessions to improve your business skills. After this, you may be all set to launch your plumbing business through a franchise-assisted grand opening.
Get started with Mr. Rooter and drain away all your previous plumbing worries!
About Mr. Rooter
|Related Categories||Plumbing , Miscellaneous Maintenance Businesses, Miscellaneous Services|
|Leadership||Doyle James, Brand President|
1010 N. University Parks Dr.
Waco, TX 76707
|Social||Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest|
|Franchising Since||1972 (2023-1972 years)|
|# of employees at HQ||1,600|
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Canada
|# of Units||245 (as of 2022)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Mr. Rooter 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.
|$80,600 - $191,140|
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.
|15% off minimum 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||Mr. Rooter 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||8-40 hours|
|Classroom Training||88 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.
|# of employees required to run||5-6|
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 Mr. Rooter? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Mr. Rooter landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Mr. Rooter ranked on other franchise lists? Find out below.
Ranked #129 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #180 in 2023
If you're interested in an opportunity with international appeal, start your search with our ranking of the top franchises seeking to expand outside the U.S.
Ranked #11 in 2023
Buying a franchise on a budget? No problem. Here are the top franchises that can be started for less than $100,000. For more low-cost opportunities, see our lists of franchises that can be started for less than $50,000 and less than $150,000.
Ranked #80 in 2022
Our ranking of the top 150 franchises offering incentives and other programs to help veterans become franchisees.
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