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- 2022 Franchise 500 Rank
#154 Ranked #149 last year
- Initial investment
$81K - $159K
- Units as of 2022
352 31.3% over 3 years
Here’s what you need to know if you’re interested in opening a Mr. Appliance franchise.
When it comes to appliance repair in North America, Mr. Appliance may be one of the first companies that comes to mind. The premiere home and commercial appliance repair brand began in 1996 and has since grown to over 290 locations in the U.S. and Canada.
Mr. Appliance has polished its franchise system for over two decades, striving to help people achieve true financial independence by giving them a business framework that has proven itself many times. If you’re looking for a new opportunity, or you would like to convert an existing appliance repair business, Mr. Appliance can provide you with expert resources and the support you need to get started.
Why You May Want to Start a Mr. Appliance Franchise
The appliance service industry is often considered to be fairly stable. You may even see growth during an economic downturn as customers may choose to repair rather than buying a new appliance. Customers need pros to keep their machines in good working condition. With a Mr. Appliance franchise, you may be able to provide them with those pros.
With the Mr. Appliance brand's strength, you may enjoy a successful franchise that seeks to support your local community. Mr. Appliance has been ranked in Entrepreneur’s Franchise 500 many times in the past several decades. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Mr. Appliance may be built for innovation, scalability, and repeat business. If you need financing, the Mr. Appliance franchise team may be ready to help, as it has partnered with third party sources that may help its franchisees cover the franchise fee, startup costs, equipment, inventory, and payroll.
What Might Make a Mr. Appliance Franchise a Good Choice?
To be part of the Mr. Appliance team, 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.
One possible investment edge of becoming a Mr. Appliance franchisee is that the company is part of the Neighborly® system. Neighborly® is the power behind some of the biggest and most rapidly expanding home service brands in the United States. Mr. Appliance has the advantage of cross-marketing to other Neighborly brands in any given location.
How to Open a Mr. Appliance Franchise
The first step to becoming a Mr. Appliance franchisee is filling out an inquiry form.
Qualified applicants are usually invited to attend a meet the team day at company headquarters in Waco, Texas, where you will be briefed on their operations, marketing strategies, technologies, and more. Take this opportunity to speak with existing franchisees and ask questions to the Mr. Appliance team about their experiences. If you meet the brand’s requirements, you may qualify to open a Mr. Appliance franchise, and you can get started with an initial investment.
If you decide to open a Mr. Appliance franchise, you'll typically get started on a training program to prepare for opening your business. The company often assigns a coach to guide its franchisees, not only as they get ready to begin operations but throughout their ownership tenure. Will you repair your neighborhood with a Mr. Appliance franchise?
About Mr. Appliance
- Franchising Since
- 1996 (26 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 352 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Mr. Appliance 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.
- Initial Investment
- $80,925 - $158,640
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.
- 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.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 15% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty 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
- 10 years
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?
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. Appliance 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
- 77.6 hours
- Additional Training
- Four regional meetings per year; annual reunion
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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
- 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 franchise ownership like Mr. Appliance? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Mr. Appliance landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Mr. Appliance ranked on other franchise lists? Find out below.
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