Mr. Appliance Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 1996

Headquarters: Waco, Texas

Estimated Number of Units: 310

Franchise Description: Mr. Appliance SPV LLC is the franchisor. The franchisor’s parent company is Neighborly Assetco LLC. Franchisees install and repair appliances, sell new and used appliances, and clean dryer vents for residential and commercial customers.
Training Overview: At least one owner or designated manager must attend and complete Phase I and Phase II Training to the franchisor’s satisfaction and in the case of Phase II training an owner as well as any manager of a location must attend and complete training to the franchisor’s satisfaction. The training requirements may vary depending on the franchisee’s experience and other factors specific to the business. The franchisor (or its affiliate) may, but is not obligated to, provide Phase I Training which may be conducted at a location of its choosing or via webinar/videoconferencing. If the franchisor requires, franchisees must attend the Phase I Training with their assigned franchise consultant or other designated person prior to participating in other training. The Phase I Training will generally last five days but training time may vary depending upon the knowledge, qualifications, and experience of the franchisee. After Phase I Training has been completed, franchisees will attend Phase II training, which generally will last five days. Training occurs at the franchisor’s offices in Waco, Texas or at such other locations as it may designate, or via webinar/videoconferencing. Phase III Training occurs via telephone or webinar/videoconferencing after Phase I is complete. In addition, franchisees will be required to attend field training including visiting the office of a designated existing franchised business selected by the franchisor for a period of one to five days to observe the office and field processes and procedures. Franchisees must also attend, every year, at their expense, the annual training or conference event specified by us and currently referred to as “Reunion,” and any other training the franchisor designates as required.

Territory Granted: Franchisees will receive the right to operate a Mr. Appliance business at a location within their territory that meets the franchisor’s site selection guidelines. The territory will have a minimum population that is generally at least 150,000 and a maximum population that is generally no more than 300,000. A larger population may be allowed under certain circumstances (e.g., densely populated urban areas or a high percentage of the prospective territory is impoverished). Franchisees will maintain rights to the territory even if the population in the territory increases. Franchisees will not receive an exclusive territory. However, provided franchisees are in full compliance with their Franchise Agreement, the franchisor will not operate or grant a franchise for the operation of another Mr. Appliance franchise with rights to market within the territory during the term of the Franchise Agreement.

Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the business unless the franchisor consents otherwise. If franchisees are a corporation or other legal entity, direct, on-site supervision must be done by a designated owner (principal owner) who has successfully completed the training program unless the franchisor consents otherwise. Franchisees must offer and sell only the goods and services that conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that the franchisor designates as required for all franchisees and they may elect to offer other products and/or services only if the franchisor approves them in advance.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The Franchise Agreement can be renewed for one additional 10-year term by executing the then-current form of Franchise Agreement and meeting the other requirements for renewal.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The franchisor’s decision to finance the initial franchise fee will be based, in part, on the franchisee’s creditworthiness, the collateral the franchisee has available to secure the financing and the franchisor’s then-current financing policies. The franchisor does not provide any financing in any transaction in which brokers are involved. The franchisor may periodically agree with third party lenders to make financing available to its qualified franchisees and the franchisor may, in its sole discretion, refer franchisees to a third party lender for financing. If franchisees are a United States or Canadian honorably discharged veteran (as such term is defined by the franchisor in its sole discretion) who meets the qualifications for purchasing a franchise, the franchisor will discount the minimum initial franchise fee by 15%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$63,750	$ 63,750 + $425 per 1,000 additional population over minimum
Vehicle	$3,250	$40,000
Equipment, Supplies & Inventory	$7,000	$13,500
Insurance	$7,500	$15,000
Advertising & Promotional and Local Marketing Spending for Marketing Start-up Phase	$16,000	$35,000
Training, Travel, Lodging & Food	$3,000	$5,500
Deposits, Permits & Licenses	$0	$1,000
Professional Fees	$0	$5,000
Technician Training	$1,000	$2,500
Real Estate	$0	$3,600
Additional Funds – 3 months	$15,000	$30,000
ESTIMATED TOTAL (does not include real estate costs)	$116,500	$214,850 (+ any additional franchise fee)

 

Other Fees

Type of Fee	Amount
License Fee	5% - 7% of gross sales except for “roll-in” sales. In addition, minimum license fees apply.
Marketing, Advertising and Promotion (MAP) Fee	2% of gross sales except for “roll-in” sales. In addition, minimum MAP fees apply.
Local Marketing Groups	Not to exceed 2% of gross sales.
Software System Monthly Fees	$274 for unlimited office access, plus $85 per mobile technician. Franchisees must use the software system (currently SmartWare, Qvinci, one NPS product, FranConnect, and two Microsoft Office365 Exchange email accounts) and other software the franchisor specifies. Additional fees apply for additional email accounts and QuickBooks Online, if applicable.
Late Fees (on Software System Monthly Fees)	$25 per month or the maximum amount allowed under the law, whichever is less.
Call Center Program Fees	Current fees: $349.99-$449.99/month (depending on the third-party vendor NCS is able to use) plus $15 per booked appointment.
Annual Convention (“Reunion”) Fees	The then-current fee. Currently up to $1,000, plus travel, lodging, meals and other expenses.
Transfer Fee	The greater of (i) $7,500 or (ii) 5% of the sales price.
Late Fees	$10 per day.
Dishonored Check of ACH Draft	$50
Interest	12% on unpaid balances.
Audit	Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees.
Audit Noncompliance Fee	$500 per document (up to $2,500 per audit) that franchisees fail to timely make available to the franchisor in connection with an audit; and/or: cost of audit, if audit is rescheduled due to the franchisee’s failure to cooperate with the audit.
Renewal Fee	$5,000
Amendment Fee	$300
Indemnification and Attorneys’ Fees and Costs	Varies according to loss.
Tax Reimbursement	Varies according to tax.
Additional Training Fees	The then-current fee, currently up to $5,000.
Key Accounts/Management Fee	If franchisees participate in the key accounts program, the franchisor reserves the right to require them to pay a key accounts / management fee to it or its designee.

The above information has been compiled from the FDD of Mr. Appliance. Year of FDD: 2025.
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