How much does it cost to open a Mr. Rooter franchise?

The total initial investment for a Mr. Rooter franchise ranges from $122,303 to $263,800. This includes the franchise fee of $42,500, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Mr. Rooter franchise?

Mr. Rooter franchisees pay a 6.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Mr. Rooter franchise?

Based on Item 19 financial performance data, the median Mr. Rooter franchise generates $1,270,728 in annual revenue. Estimated owner profit is approximately $279,560.

Early Access — All reports and features are 100% free while we collect feedback. Send us feedback

Home Services 232 Units

Mr. Rooter Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$122,303 – $263,800

Franchise Fee

$42,500

Royalty Rate

6.0%

Initial Investment Range

Low: $122,303 High: $263,800

The total initial investment to open a Mr. Rooter franchise ranges from $122,303 to $263,800, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $42,500.

Midpoint estimate: $193,052

Franchise Fee

$42,500

One-time initial fee

The Mr. Rooter franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Mr. Rooter brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
License Fee	6.0	PCT	Standard rate is 6% of Gross Sales. Minimum license fees apply starting Week 40, ranging from $100-$1,400 based on territory population. Special reduced rates apply for roll-in businesses: Small roll-in (3% for weeks 1-52), Medium roll-in (3% for weeks 1-52), Large roll-in (2.5% for weeks 1-104). All roll-ins increase to 6% after specified periods. Due Tuesday 5pm Central Time each week.
MAP Fee	2.0	PCT	Marketing, Advertising and Promotion Fee. Standard rate is 2% of Gross Sales. Reduced rates for roll-in businesses: Small/Medium roll-in (1% for weeks 1-52), Large roll-in (0.5% for weeks 1-104). Minimum MAP fees apply for roll-in businesses only. Due Tuesday 5pm Central Time each week.
Local Marketing Groups	3.0	PCT	Not to exceed 3% of Gross Sales. Currently, 2% may be required for Neighborly marketing and brand awareness initiatives. If designated, must participate in LMG advertising programs. Contribution counts towards Minimum Local Marketing Spending requirement. Due date determined by LMG members.
Software System Fees	76.0	FIXED	Base fee of $76/month covers Technology Package (Qvinci, FranConnect, NPS product/Broadly, Microsoft Office365 accounts). Additional email accounts $4.50-$24/month. QuickBooks Online through ZorWare adds $30-$200/month. ServiceTitan support at $125/hour. May increase up to 30% annually plus vendor price increases. Paid via ACH on 15th of each month. ServiceTitan license fees paid separately to ServiceTitan Inc.
Late Fees (on Software System Monthly Fees)	25.0	FIXED	$25 per month or maximum allowed by law, whichever is less. Applies if Software System Monthly Fees not paid within 30 days of invoice date.
Call Center Program Fees	399.99	FIXED	$349.99-$449.99/month depending on third-party vendor, plus $25 per booked appointment. Paid monthly in arrears in first week of each month to affiliate Neighborly Service Solutions SPV LLC. Handles rollover and after-hours customer calls. May increase up to 30% annually plus vendor price increases.
Annual Convention (Reunion) Fees	1000.0	FIXED	Currently up to $1,000 per person registration fee, plus travel, lodging, meals and other expenses. Mandatory attendance each year. $2,000 penalty for failure to attend. May increase up to 30% annually plus vendor increases. Payable when billed or within 30 days after Reunion via automatic bank draft.
Transfer Fee	15000.0	VARIABLE	Greater of $15,000 or 5% of sales price. Due before transfer. May be discounted or waived for transfers to controlled legal entity or immediate family. Applies to each Franchise Agreement and Development Agreement transferred.
Training Fee as part of Buyer Commitment Agreement	14900.0	FIXED	Payable only if transferee buyer requests training prior to closing on sale of Business. In addition to all other transfer requirements. Due prior to attending training.
Late Fees (Franchise Agreement)	10.0	FIXED	$10 per day on overdue fees. Payable on demand.
Dishonored Check or ACH Draft	50.0	FIXED	$50 for each check returned or ACH draft refused for insufficient funds. Payable on demand.
Interest	12.0	PCT	12% per annum on all overdue amounts. May be collected on demand, including weekly or monthly through automatic bank draft.
Audit	N/A	VARIABLE	Cost of audit plus expenses, plus any amount owed, plus interest and late fees. Payable only if understatement of Gross Sales of 2% or more found, or if fail to provide requested information within 30 days. Payable when billed.
Audit Noncompliance Fee	500.0	FIXED	$500 per document (up to $2,500 per audit) for failure to timely make available requested documents. Plus cost of audit if rescheduled due to lack of cooperation. Payable on demand.
Renewal Fee	5000.0	FIXED	$5,000 due on renewal. See Item 17 for terms and conditions.
Amendment Fee	300.0	FIXED	Processing fee for modifications to franchise agreement made at franchisee's request. May require general release. Payable when billed.
Indemnification and attorneys' fees and costs	N/A	VARIABLE	Reimbursement for all costs if franchisor must enforce rights and prevails, or if sued due to franchisee actions/omissions. Includes reasonable attorneys' fees (outside counsel and in-house legal costs at comparable rates), interest, court costs and expenses. Payable on demand.
Tax Reimbursement	N/A	VARIABLE	Amount equal to sales tax, use tax, gross receipts tax, documentary stamp tax or similar tax (other than income tax) imposed on franchisor due to franchisee payments. Franchisee pays additional amounts so franchisor receives full payment. Payable when billed.
Key Accounts/Management Fee	5.0	PCT	Up to 5% of total Gross Sales related to Key Account work, including sales from Key Accounts, Business Development leads, call center dispatched work, and work audited to Key Accounts standards. Payable when billed or deducted from payments/added to invoice. May also be called Key Accounts Management fee or Management fee.
Additional Training Fees	1000.0	FIXED	Currently up to $1,000 per day for training beyond initial training program, plus franchisee's costs and expenses. Training may be conducted remotely/virtually. May increase up to 30% annually. Payable when billed.
Minimum Local Marketing Spending	5.0	PCT	Greater of $30,000 or 5% of prior year Gross Sales. In addition to MAP fees. Amounts paid to LMG, First Year Marketing Spend Requirement ($30,000 minimum during first 12 months), and certain local advertising spending count towards this requirement. If not spent, franchisor may collect deficiency and spend it or contribute to MAP Fund.

What You Get

Financial Performance (Item 19)

Median Revenue

$1,270,728

per year, per location

Mean Revenue

$2,009,644

per year, per location

Profitability Estimate

Estimated Owner Profit

$279,560

per year

Profit Margin

22.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 0.7 years

Based on midpoint investment of $193,052 and estimated annual owner profit of $279,560.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.3%

Low risk — below industry average

Net Unit Growth

+24 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	205	+14	-4	—	209
2023	209	+11	—	—	215
2024	215	+22	-4	—	229

Is a Mr. Rooter Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Mr. Rooter franchise opportunity:

Overall Score

86/100

Strong opportunity

Est. Payback Period

0.7 yrs

Fast payback

Risk Level

Low

1.3% annual closure rate

Mr. Rooter scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,270,728 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.