Mr. Rooter Plumbing Franchise Analysis 2026

What is Mr. Rooter Plumbing?

Founded in 1968, Mr. Rooter Plumbing operates 330 US locations specializing in plumbing services including drain cleaning and pipe repair. The franchise benefits from essential service demand and builds recurring customer relationships through quality service delivery.

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Investment & Fee Data

Investment Overview

Franchise Fee$42K

Total Investment$122K – $264K

Royalty Rate6.0%

Ad/Marketing Fund2.0%

Total Fee Burden8.0%

System Size & Growth

US Locations330

Unit Growth Rate+3.0%

Founded1968

Franchising Since1972

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$1.8M

Owner Earnings$175K

SBA Default RateN/A

5-Year Survival93%

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💡 What This Means For You

The combined fee burden of 8.0% is within the industry average of 8-10%. Beyond the listed investment, expect approximately $62K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $255K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$1.8M

Net Profit Margin15%

Est. Owner Earnings$175K

Breakeven6-12 months

Payback Period1-3 years

Capital Requirements & Operations

Liquid Capital Required$100K

Net Worth Required$250K

Staff Required5-15 plumbers

Training8 weeks

TerritoryPopulation-based territory

Multi-Unit RequiredNo

Term Length10 years

Risk & SBA Safety Data

SBA Default RateNo Data

5-Year Survival93%

Renewal FeeVaries

Transfer FeeVaries

💡 Financial Analysis

The revenue-to-investment ratio of 9.1x is excellent — every dollar invested generates $9.1 in annual revenue, well above the 2x industry benchmark. At estimated owner earnings of $175K/year, the simple payback period is approximately 1.1 years.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$30K

Legal & Accounting$12K

Insurance (Annual)$8K

Tech/Software (Monthly)$400/mo

Lease Deposit Est.$0

Grand Opening$10K

Total Hidden Costs$62K

👤 Owner Reality Check

Hours Per Week45-55

Absentee Owner Friendly?Yes ✓

Manager-Run Possible?Yes ✓

Seasonal VariationModerate

Labor Cost (% of Revenue)40%

Owner-managed operations. Expect to invest 45-55 hours per week managing day-to-day activities, staff oversight, customer acquisition, and brand compliance. Focus on operational efficiency and franchisee standards adherence.

📊 Franchisee Health

Satisfaction Score75/100 (Good)

Annual Turnover Rate5.0%

Litigation Count (Item 3)8 cases

5-Year Closure Rate3%

Avg Franchisee Tenure8 years

Franchisee AssociationYes ✓

🚪 Exit Strategy & Resale

Resale Value Multiple2.0-3.0xx earnings

Transfer RestrictionsFranchisor approval required; right of first refusal

Non-Compete Period2 years

Non-Compete Radius15 miles

Avg Time to Sell6-12 months

Exit DifficultyModerate

📋 FDD Transparency Report

Item 19 QualityModerate

Item 19 Includes:

✓ Average unit volume

✓ Operating costs

Territory ProtectionModerate

Territory scope varies by location; moderate exclusivity provided

Required Suppliers?No

Supplier Markup RiskLow

Renewal Terms10-year term; renewal terms subject to brand standards compliance

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

Moderate fee structure (8.0% total)Low litigation history

✅ Positive Signals:

Item 19 comprehensive financial disclosureEstablished system with strong unit baseTrack record data available

AI Disruption Risk Assessment

🛡️ AI Disruption Risk: Low

18/100

AI-Proof Disruption Timeline: 5-10 years High Risk

Low risk. Plumbing is skilled, hands-on work that cannot be automated. AI may assist with diagnostics and scheduling, but the core service requires trained plumbers. The franchise model is defensible.

AI Threats:

Plumbing work requires skilled technicians on-site

Defensive Moat:

Franchisee network, skilled plumber relationships, 24/7 service, brand reputation, local presence.

🤖

AI Risk Analysis

See how AI will impact Mr. Rooter Plumbing over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.10

Units per 100K pop.

0.03x

Saturation Index

vs. Home Services avg (3.09/100K)

States with Presence

Low Saturation

Mr. Rooter Plumbing has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Vermont	11	645,000	1.71
Wyoming	9	581,000	1.55
Alaska	8	733,000	1.09
South Dakota	8	887,000	0.90
Delaware	8	1,031,000	0.78

Least Saturated States

State	Units	Population	Per 100K
Texas	10	30,503,000	0.03
California	12	39,029,000	0.03
New York	10	18,777,000	0.05
Florida	12	23,555,000	0.05
Illinois	9	12,549,000	0.07

Growth Opportunity States

High-population states where Mr. Rooter Plumbing has minimal or no presence — potential expansion territories.

Georgia North Carolina Washington Indiana Missouri

Investment Thesis

Mr. Rooter Plumbing carries a BUY signal with a FutureScore of 74/100. Extraordinary investment-to-revenue ratio. $122K-$264K investment generates $1.75M AUV with 15% margins. Plumbing is essential, recession-resistant, and always in demand. The Neighborly ecosystem provides cross-referrals.

Ideal Investor Profile: Operator with trade industry background or willingness to manage skilled trades

Strengths

$1.75M AUV on $122K-$264K investment — extraordinary ratioNeighborly #1 in plumbing categoryEssential service = recession-proof demand8% total fees

Risk Factors

Skilled plumber shortageEmergency service = 24/7 demandsCompetition from local plumbers

Mr. Rooter Plumbing