Rooter-Man Franchise Cost & Fees
Date of Incorporation: 1970
Franchising Since: 1981
Headquarters: North Billerica, Massachusetts
Business Description: A CORP. is the franchisor. 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.
Franchise Offer: Franchises will primarily be sold to individuals who have some experience in providing plumbing, sewer and drain cleaning services.
Financial Assistance: A CORP. may finance up to 50% of a franchisee’s additional franchise fee when franchisees exercise their option to purchase the additional territories pursuant to a Promissory Note for a period of 1 to 3 years. A CORP. has no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement. Other than mentioned, A CORP. does not offer direct financing nor does A CORP. arrange financing from other sources.
Training and Assistance: The training program must be successfully completed by franchisees or their A CORP. approved designated representative before they begin operating your franchise. Training will be conducted in the vicinity of A CORP.’s home office located in North Billerica, Massachusetts or any other area as designated by A CORP. The owner of the franchise business and/or a full time operating manager must attend the training programs. Additional training programs or refresher courses are not required, but encouraged. Franchisees may attend unlimited additional training and/or refresher courses as they choose free of charge although they are responsible for their expenses to attend such courses. In addition to the above free two training programs, on-the-job training is optional. Upon request, such training may be conducted at the franchisee’s location. Hours of on-the-job training varies from 8 to 16 hours depending upon each franchisee’s past experiences.
Territory: Franchisees will receive an exclusively Licensed Territory, consisting of unit(s) based on population. A minimum of 125,000 populations constitute one unit. Franchisees may purchase as many additional units as they wish for their exclusively Licensed Territory. The Licensed Territory will be defined by zip codes and/or related boundaries and will be defined in the Franchise Agreement. A CORP. will not grant another Rooter-Man franchise in the exclusively Licensed Territory.
Term of Agreement and Renewal: The length of the initial franchise term is 5 years. Additional terms of 10 years provided franchisees are in good standing.
Obligations and Restrictions: A CORP. requires that franchisees directly supervise the Franchise Business, or alternatively, oversee and supervise a full-time manager who has successfully completed A CORP.’s training program and signed a written agreement to maintain the same degree of confidentiality as is required of franchisees. A CORP. requires franchisees to offer and sell only those services that A CORP. has approved. Franchisees must offer all services that A CORP. designates for its franchisees. Franchisees are limited to servicing customers who reside or who are located within the Licensed Territory.
Estimated Number of Units: 615
|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 Hardware, Office Equipment and Furniture||$2,500||$5,500|
|Licenses and Permits||$500||$1,000|
|Miscellaneous Opening Costs||$1,000||$3,000|
|Grand Opening Advertising (6 months)||$1,500||$3,500|
|Additional Working Capital Funds – initial period (18 months)||$10,000||$20,000|
|Type of Fee||Amount|
|Continuing Royalty (Monthly Franchise Fee)||$0.88 per thousand population monthly.|
|Marketing Fund Contribution||$0.12 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 $2,500|
The above information has been taken from the FDD of Rooter-Man. Year of FDD: 2016
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