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Rooter-Man Franchise Cost & Fees

Date of Incorporation: March 2, 1982

Franchising Since:
1982

Headquarters:
Massachusetts

Country: USA 

Description: The Rooter-Man franchise features sewer and drain cleaning services which include the maintenance and cleaning of sewer pipes, emergency plumbing repairs and other related services and products.  Franchises will primarily be sold to individuals who have some experience in providing plumbing, sewer and drain cleaning services.

Franchise Offer: The Rooter-Man franchise provides emergency plumbing repairs and sewer and drain cleaning services to residential dwellers, commercial operations such as restaurants and hotels, and government facilities and municipalities.

Financial Assistance: A CORP is the franchisor of Rooter-Man. A CORP conducts its franchise business using the name of Rooter-Man. A Corp may finance up to 50% of the additional franchise fee when the franchisee exercises the option to purchase the additional reserved territories pursuant to a Promissory Note for a period of 1 to 3 years. Interest will be at 12% APR (Annual Percentage Rate). A CORP has no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement.

Training and Assistance: Training will be conducted in the vicinity of A CORP's home office located in North Billerica, Massachusetts or any other area. Training programs are usually held free of charge two to three times each year. However, the franchisee must pay travel and living expenses of the training programs. The owner of the franchised business and/or a full time operating manager must attend the training programs.

Territory:
The franchisee will receive a Licensed Territory, consisting of unit(s) based on population.   A minimum of 125,000 populations consist one unit. The franchisee may purchase as many additional units for the exclusive territory. The franchisee will not be permitted to actively solicit customers outside the licensed territory without A CORP's prior written consent.

Term of Agreement and Renewal: The term of franchise agreement is 5 years. Renewal or extension of the term is for 10 years provided franchisee is in good standing

Obligations and Restrictions: The franchisee may directly supervise the Franchise Business, or alternatively, oversee and supervise a full-time manager who has successfully completed the training program. The franchisee must offer all services that A CORP designates for its franchisees. For the Rooter-Man franchise, this includes plumbing, sewer and drain cleaning and maintenance services and the sale of authorized drain cleaning products to the customers.

Total Number of Units: 484 units.

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $3,975 $39,750
Travel & Living Expenses While Training $350 $1,600
Real Estate & Improvements $400 $1,000
Vehicles and Equipment $22,000 $42,000
Computer Hard-ware, Office Equipment and Furniture $2,500 $5,500
Beginning Inventory $1,000 $3,000
Signs $500 $2,500
Professional Fees $500 $1,000
Licenses and Permits $500 $1,000
Insurance $1,500 $3,500
Miscellaneous Opening Costs $1,000 $3,000
Grand Opening Advertising (6 months) $1,500 $3,500
Additional Working Capital Funds - (18 months) $10,000 $20,000
Total: $46,725 $137,600

 Ongoing Fees:

Name of Fee Amount
Continuing Royalty (Monthly franchise fee) $0.52 per thousand population monthly
Marketing Fund Contribution $0.08 per thousand population monthly
Audit Fee (Only applicable if delinquent on monthly fee payments) Cost of Audit plus 18% per annum on underpayment of continuing royalty and advertising fees
Interest Expense (Only applicable if delinquent on monthly fee payments) 18% per annum
Franchisee Termination Fee (Opt-Out) Only during initial 5 year term $25.00 per thousand population
Transfer Fee Greater of 5% of Franchise Selling Price or $2500.00
Renewal Fee $2500.00

Date of FDD: 2008 

The above information has been taken from the UFOC/FDD and online sources of Rooter-Man.
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