BlueFrog Plumbing and Drain Franchise Costs, Fees & FDD

Year Business Began: 2013

Franchising Since: 2014

Headquarters: The Colony, Texas

Estimated Number of Units: 45

Franchise Description: BlueFrog Plumbing and Drain, LLC is the franchisor. The parent company is Stellar Brands. The franchisor franchises the right to develop, own, and operate a business offering plumbing services, drain cleaning services, water and gas leak detection and repair services, water heater, water softener, water filtration system services, and other products and services it authorizes.
Training Overview: The franchisor will provide a training program on the material aspects of operating a BlueFrog business to the franchisee (or the franchise owners) and up to three additional persons (one of which must be the designated owner or designated manager, as applicable) (together, called the “key personnel”). The training program is offered on an as needed basis at the franchisor’s training location in The Colony, Texas, or another location it designates, which may include conducting any portion of the training program virtually. The franchisor may require franchisees and their key personnel and/or other personnel to attend various training courses, trade shows, ongoing education programs, and/or webinars at the times and locations designated by the franchisor, which may be offered by the franchisor or its affiliates, vendors, or other designees. In addition to these training courses, programs, and events, the franchisor may additionally require franchisees and/or any of their key personnel to attend periodic meetings of franchise owners or managers.

Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, outlets that the franchisor owns, or from other channels of distribution or competitive brands that the controls. The franchisee and the franchisor will agree on a geographic area to act as the market territory. The market territory may be defined by ZIP codes, political boundaries, geographic boundaries, or roads. A standard market territory will have a population of 400,000 to 500,000. During the term of the Franchise Agreement, if the franchisee and their owners and affiliates are in full compliance with the Franchise Agreement and all other agreements with the franchisor and its affiliates, the franchisor will not establish or operate, or grant any other person the right to establish or operate, a BlueFrog business with an office located in the market territory.

Obligations and Restrictions: If franchisees operate their Franchised Business through a legal entity, they must identify one of the owners who is a natural person with at least a 10% direct or indirect ownership interest and voting power in that entity (the “designated owner”). The franchisor must approve the person that will act as the designated owner. Franchisees must obtain the franchisor’s prior written approval of any subcontractor that will be used to provide services of any kind for the franchised business. Franchisees must provide or offer for sale or use at the franchised business all of the services, products, supplies, equipment, and other items that the franchisor periodically designates.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may renew for one successive 10-year term if they satisfy the conditions.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. The franchisor offers a discounted franchise fee to qualifying veterans who have received an honorable discharge from any branch of the United States military before applying to become a franchisee.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$59,900	$67,400
Technology Fee	$1,596	$1,596
Real Estate/Rent	$2,000	$9,000
Signage & Graphics	$500	$1,500
Office Furniture, Fixtures, & Equipment	$14,000	$62,500
Service Tools, Equipment, and Initial Inventory	$3,000	$6,000
Point-of-Sale System	$0	$1,750
Technology Systems Components	$505	$2,005
Training Fee	$3,000	$3,000
Training Expenses for 3 People	$2,000	$5,000
Vehicle	$3,000	$65,000
Marketing Materials & Grand Opening Advertising	$10,600	$18,000
Digital Marketing Fee (3 months)	$897	$897
Insurance	$2,000	$6,000
Licenses & Permits	$2,000	$4,000
Recruitment for Master Plumber	$0	$8,000
Professional Fees	$1,500	$9,000
Additional Funds (3 months)	$37,500	$75,000
ESTIMATED TOTAL	$144,498	$345,648

 
Other Fees

Type of Fee	Amount
Royalty Fee	Greater of percentage-based royalty fee or minimum royalty fee.
Technology Fee	$399/month (subject to change).
Additional User Accounts	$10 to $25 / month / user (subject to change).
Brand Fund Contribution	Greater of percentage-based brand fund contribution or minimum brand fund contribution.
Local Advertising Expenditure	Not currently charged (subject to change up to 2% of invoiced gross revenue).
Digital Marketing Fee	$299 per month (but subject to change up to $499 per month).
Marketing in Another Market Territory	Greater of: (i) $5,000 per incident, or (ii) 100% of the job value for any work obtained outside of the franchisee’s market territory.
Audit Expenses	Cost of audit.
Approval of Products or Suppliers	All costs and expenses associated with the evaluation.
Insurance Policies	Amount of unpaid premiums plus the franchisor’s reasonable expenses in obtaining the policies.
Service Warranties Remediation	The franchisor’s cost of honoring any service warranty.
Service Warranty Deposit	Varies based on the amount of outstanding service warranties.
Transfer Fee	$5,000
Renewal Fee	The franchisor’s direct costs and expenses.
Additional Training Fee	$1,000 per day per trainee (subject to change), plus expenses.
Conference Registration Fee	$399 per person (subject to change up to $1,000 per person).
National Account Dispatch and Claims Management Fees	No dispatch fees currently charged (subject to change). Claims management fee of 5% of the invoiced amount (subject to change).
Cost of Enforcement	All costs including reasonable attorneys’ fees.
Interest on Past Due Amounts	Lesser of 1.5% per month or the highest rate allowed by law.
Vendor Cost Reimbursement	Reimbursement all amounts, plus the franchisor’s costs and expenses.
Customer Refund	Reimbursement all amounts, plus the franchisor’s costs and expenses.
Reimbursement for Taxes	Reimbursement all amounts, plus the franchisor’s costs and expenses.
Indemnification	All costs including reasonable attorneys’ fees.
Interim Operations Fee	5% of invoiced gross revenue (subject to change), plus costs and expenses.
Final Payment	Un-invoiced revenue multiplied by the combined rate of the franchisee’s royalty fee and brand fund contribution as of the date of termination or expiration.
Lost Revenue Damages	Will vary under circumstances.

The above information has been compiled from the FDD of BlueFrog Plumbing and Drain. Year of FDD: 2025.
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