Do you want to open an appliance repair business by buying Mr Appliance franchise? If YES, here is how much it cost to open Mr Appliance franchise successfully. If you are looking towards opening a Mr. Appliance Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.
Mr. Appliance was founded in 1996 and they began franchising in 1996, about 24 years ago. Ron Shimek is the Brand President of the company and they have their corporate head office at 1010 N. University Parks Dr. Waco, TX 76707, USA . As of the 2021 Franchise Disclosure Document, there are 277 franchised Mr. Appliance locations in the USA, and residential clients at more than 150 locations worldwide.
Mr. Appliance has franchise locations in 44 states. The largest region is the South with 140 franchise locations. Mr. Appliance franchises provide full-service home appliance repair and light commercial appliance repair services. Mr. Appliance is consistently ranked among the top home service franchises by Entrepreneur magazine and other industry experts. The company is a subsidiary of the Neighborly® family of service franchises.
Mr. Appliance is a leading national appliance repair franchise with a primary focus on helping franchisees meet and exceed their financial, professional and personal goals. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Mr Appliance Franchise
- Initial investments: $60,800 – $139,515
- Ongoing Initial Franchise Fee: $35,000
- Minimum Cash Required: $50,000
- Net Worth Required: $150,000
- Ongoing Royalty Fee: 7%
- Ad Royalty Fee: 2%
1. Initial Investment Range: $60,800 to $139,515
2. Franchise Fee: $35,000
3. Royalty Fee: 6 percent of Gross Sales
The Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Mr. Appliance and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Mr. Appliance if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Mr Appliance if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Mr Appliance is required to defend your unsuccessful claim against it.
- Veteran Incentives: Mr. Appliance offers a 25% discount on the base franchise fee for qualified, honorably discharged veterans. They also offer a 20% discount on the base franchise fee for qualified individuals who spent at least 2 years full-time in law enforcement or fire fighting.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Mr. Appliance offers in-house financing for up to 70% of the purchase price to qualified parties. Mr. Appliance also has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
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