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- 2022 Franchise 500 Rank
#240 Ranked #260 last year
- Initial investment
$108K - $245K
- Units as of 2022
214 26.6% over 3 years
Here’s what you need to know if you’re interested in opening a Mr. Electric franchise.
Mr. Electric is a franchise that provides residential and commercial customers with electrical installation and repair services. With more than 150 locations in the United States, double digits in Canada, and another few internationally, Mr Electric is a subsidiary of Neighborly.
Electricity touches nearly every corner of a home, unlike other home services that may affect just one element. Mr. Electric, then, falls under the category of maintenance and home repairs and hits one of the most important parts of the home. Over the past 20 years, the franchise has striven to build effective systems for business growth.
Why You May Want to Start a Mr. Electric Franchise
There is room for growth as Mr. Electric offers designated territories in many prime markets across North America. Businesses are set at non-competitive grounds, which may allow for solid growth. As you explore the opportunity, take the time to speak to existing Mr. Electric franchisees to learn more about the brand and what it means to operate a franchise location.
Franchisees do not need industry experience; you can easily hire electricians to complete the daily electrical work. To run the franchise, you will need to hire multiple full-time employees. Many projects are paid in cash on completion by customers; this practice may eradicate the chances of bad debts to franchisees.
What Might Make a Mr. Electric Franchise a Good Choice?
To be part of the Mr. Electric 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 may include advertising, royalty, and renewal fees.
Mr. Electric typically operates on a 10-year term. If Mr. Electric is happy with the performance of your franchise, then you may be given the opportunity to renew your lease.
If the franchisor recognizes you as a qualified franchisee, third-party financing sources can cover the startup cost, franchise fee, inventory, equipment, payroll, and accounts receivable. Veterans may also receive a discount when opening a Mr. Electric franchise.
How To Open a Mr. Electric Franchise
When deciding if opening a Mr. Electric franchise is the right decision for you, there are many things to consider:
You need to learn as much as you can about the brand.
You should research your area's current market and see if a Mr. Electric franchise would be needed or wanted. Determine how many other brands are in the area; you don't want the market to be too saturated.
Develop questions about daily operations, marketing strategies, technology advancements, and more as you research the opportunity.
Upon approval of a franchise, you may begin the sure start training program, which includes many hours of both on-the-job training and classroom training, after which you will begin business opening preparations. You may also be required to attend regional meetings twice a year.
Being well-informed about Mr. Electric will help when beginning the process of opening a franchise. Most of all, you should desire to serve your community and grow a quality business.
About Mr. Electric
- Franchising Since
- 1994 (28 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: Europe (Eastern), Europe (Western), Canada
- # of Units
- 214 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Mr. Electric 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
- $107,900 - $244,500
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 minimum 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. Electric 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
- 58.75 hours
- Additional Training
- Regional meetings twice a year; webinars
- 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. Electric? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Mr. Electric landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Mr. Electric ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Mr. Electric.
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