Mr. Electric Franchise

Mr. Electric, a Neighborly franchise, has been franchising since 1994 , currently with 230 total locations in the home services sector, headquartered in TX. The 2024 FDD lists a total initial investment between $130K and $250K, roughly a 92% gap between the low and high end once site size, local market, and buildout scope are factored in. That total bundles the franchise fee of $43K together with equipment, leasehold buildout, and the working capital needed to get through ramp-up.

Royalty payments here are set at 5.0% of gross sales, plus a 2.0% national ad-fund contribution on top -- 7.0% combined out of every sales dollar. Mr. Electric does provide Item 19 financial performance data -- a voluntary disclosure that most U.S. franchisors (roughly two-thirds) skip. The reported average gross revenue per location is $600K, meaning the typical unit pays roughly $30K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Mr. Electric's network is expanding: unit count grew at a 4.3% net rate over the past year (20 openings, 10 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health.