Mr. Electric Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 1994

Headquarters: Waco, Texas

Estimated Number of Units: 240

Franchise Description: The franchisor is Mr. Electric SPV LLC. The franchisor is a direct, wholly owned subsidiary of Neighborly Assetco LLC. Franchisees sell, service, repair, install and maintain electrical systems, equipment, components and supplies, including upgrades, remodeling and related services for both residential and commercial customers.
Training Overview: 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/ video conferencing. 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 2.5 days but training time may vary. Part 1 of Phase II Training occurs at the franchisor’s offices in Waco, Texas or at such other locations as the franchisor may designate, or via webinar/video conferencing. Part 1 of Phase II training generally lasts 5 days. Part 2 of Phase II Training occurs virtually the month following Part 1. 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 2 to 3 days to observe the office and field processes and procedures (although the training may be conducted virtually). Franchisees must also attend, every year, the annual training or conference event specified by the franchisor and currently referred to as “Reunion,” and any other training it designates as required. The franchisor may also require franchisees to attend and complete a “refresher” training course or advanced training course if it determines that franchisees are not current on all aspects of the system or are otherwise in need of training.

Territory Granted: Franchisees will receive the right to operate a Mr. Electric business at a location within their territory that meets the franchisor’s site selection guidelines. The Franchise Agreement will also specify a designated territory that will provide the franchisee limited territory protection. The Franchise Agreement does not grant franchisees any territorial rights beyond the territory. The territory will have a minimum population that is generally at least 100,000 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. Electric 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 the franchisor agrees that the franchisee need not personally perform or supervise operation of the business, an individual who has successfully completed the training program must directly supervise the business, and that individual must be a bona fide manager, as determined by the franchisor. If franchisees are a corporation or other legal entity, direct, on-site supervision must be done by a designated owner (the “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 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. The franchisor does not guarantee a franchisee’s obligations to third parties. 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 20%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$42,500	$42,500 + $425 per 1,000 additional population over minimum
Vehicle	$3,500	$55,000
Equipment, Supplies & Inventory	$12,000	$20,000
Insurance	$5,000	$7,500
Advertising, Marketing and Promotional Spending	$30,000	$60,000
Training, Travel, Lodging & Food	$8,000	$16,000
Deposits, Permits & Licenses	$1,000	$2,500
Professional Fees	$0	$5,000
Real Estate	$0	$6,000
Additional Funds – 3 mo.	$50,000	$100,000
ESTIMATED TOTAL	$152,000 (does not include real estate costs)	$314,500 + any additional franchise fee + any real estate costs

 

Other Fees

Type of Fee	Amount
License Fee	6% of gross sales except for specialty services and “roll-in” sales. In addition, minimum license fees apply.
Marketing and Promotion (MAP) Fee	2% of gross sales for Mr. Electric franchisees and 1.5% of gross sales for Neighborly Electric franchisees; except for specialty services and “roll-in” sales.
Local Marketing Groups	Not to exceed 3% of gross sales.
Software System Monthly Fees	$76 per month,. Franchisees must use the business management software system (currently ServiceTitan) 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) $15,000 or (ii) 5% of the sales price.
Late Fees (Franchise Agreement)	$10 per day.
Dishonored Check or ACH Draft	$50
Interest	12% on unpaid balances.
Failure to Maintain Insurance	The franchisor’s actual cost for insurance premiums and a reasonable fee for expenses it incurs.
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 Fee	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. Electric. Year of FDD: 2025.
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