FRANCHISE BUNDLE

Get Full Bundle:
$79 $49
$99 $79
$49 $29

TOTAL:

Description

How to Open a Roto-Rooter Franchise?

To begin your journey in owning a Roto-Rooter franchise, you need to complete an initial franchise application along with a franchise fee ranging from $25,000 to $75,000. The total investment required to operate a Roto-Rooter franchise typically falls between $103,980 and $273,700. Following your application, you will receive the Franchise Disclosure Document (FDD) to review. If you proceed, you’ll participate in training and operational setup before officially launching your business.

What Makes a Roto-Rooter Franchise a Smart Investment?

The Roto-Rooter franchise model is built on a well-established brand that has been operational since 1935. With a focus on plumbing, drain cleaning, and water restoration services, Roto-Rooter benefits from a steady demand for these essential services. Franchisees can expect ongoing support from the franchisor, including marketing assistance and operational training, which can significantly enhance your chances of success in a competitive marketplace.

Why Consider Becoming a Roto-Rooter Franchisee?

Owning a Roto-Rooter franchise allows you to leverage a recognized brand name and a proven business model. The franchise caters to both residential and commercial customers, providing diverse revenue opportunities. Roto-Rooter also offers significant training programs that equip franchisees with the necessary skills to manage their business effectively, even if they lack prior industry experience. This support can be instrumental in establishing a successful franchise operation.

Is a Roto-Rooter Franchise Right for You?

The plumbing and drain cleaning industry is robust and essential, providing a potentially lucrative opportunity for franchisees. Roto-Rooter has a strong presence across the U.S. and offers franchisees a comprehensive support system. However, it’s crucial to assess your readiness for the initial investment and ongoing operational expenses, including royalties and advertising fees, to ensure that you’re financially prepared to enter this franchise system.

Roto-Rooter Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

A broad sector defining similar types of franchise businesses.

Industry

Home Services Franchises
A more specific division within the broader industry.

Category

Plumbing
Available financing options to help start the franchise.

Funding Year

1936
The main organization that owns the franchise brand.

Parent Company

Chemed Corporation
The key individuals guiding the franchise’s strategy and growth.

Leadership

Robert P. Goldschmidt
The official business address of the franchisor’s headquarters.

Corporate Address

300 Ashworth Road, West Des Moines, Iowa 50265
The total amount required to launch the franchise.

Initial Investment

$103,980 - $273,700
The initial fee paid to join the franchise system.

Franchise Fee

$25,000 to $75,000
Ongoing percentage of revenue paid to the franchisor.

Royalty Fee

9,720.00$
Regular contribution toward the franchise’s advertising fund.

Marketing Fee

15%
The minimum liquid capital you must have on hand.

Cash Required

$103,980 - $273,700
The minimum total assets (minus liabilities) you must possess.

Net Worth Required

$500,000 - $1,000,000
The typical yearly revenue generated per franchise location.

Average Revenue

$949,352
The middle value of yearly revenue among franchise locations.

Median Revenue

$949,352
The smallest reported annual revenue among franchisees.

Lowest Revenue

$933,399
The largest reported annual revenue among franchisees.

Highest Revenue

$949,352
The estimated timeframe to recover your initial costs.

Breakeven Time

12 Months
The estimated period to recoup your total investment.

Investment Payback

30 Months

Roto-Rooter Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.

The overall number of operating franchise locations.

Total Units

458
The number of locations owned by independent franchisees.

Franchised Units

341
The number of locations owned and run by the franchisor.

Corporate Units

117
Units 2021 2022 2023
Total Units 474 463 458
Net Change YoY -11 -5
Franchised Units 353 348 341
Net Change YoY -5 -7
Corporate Units 121 115 117
Net Change YoY -6 2

Company Background

Roto-Rooter is a leading plumbing and drain cleaning service provider in North America, with a legacy spanning over 80 years. Founded in 1935, Roto-Rooter has grown to become a household name, offering a wide range of plumbing solutions including emergency repairs, maintenance, and installation services. With thousands of franchises across the United States and Canada, Roto-Rooter is known for its reliable service and commitment to customer satisfaction, making it a trusted choice for both residential and commercial clients.

Franchise Opportunity

If you're considering investing in a Roto-Rooter franchise, you're looking at an opportunity with a well-established brand in the plumbing industry. As a franchisee, you will benefit from Roto-Rooter's extensive training programs, marketing support, and proven operational systems. The franchise model is designed to provide you with the tools needed to succeed in a competitive market, allowing you to tap into a lucrative sector with a strong demand for plumbing services.

Corporate Structure

Roto-Rooter Services Company is the parent company of the Roto-Rooter franchise system, originally established in 1935. The company operates under the Roto-Rooter name and has its headquarters located in Cincinnati, Ohio. Franchisees are able to operate under the Roto-Rooter brand, gaining access to its established reputation and operational procedures, which have been refined over decades in the plumbing industry.

Royalties

Roto-Rooter franchisees are required to pay a royalty fee of 5% of gross sales. Additionally, franchisees contribute to a national advertising fund, which is typically around 2% of gross sales. This fee structure ensures that franchisees benefit from brand-wide marketing efforts while supporting the continued growth and visibility of the Roto-Rooter brand.

Company Mission

The mission of Roto-Rooter is to provide exceptional plumbing and drain cleaning services while upholding the highest standards of professionalism and customer care. This commitment drives the company to continually improve its services and technology, aiming to exceed customer expectations at every interaction. Roto-Rooter strives to be the first choice for plumbing solutions, fostering trust and reliability in every community it serves.

Brand Story

Roto-Rooter was founded in 1935 by Samuel Blanc, who developed the first mechanical rooter to clear tree roots from sewer lines. This innovative solution quickly gained popularity, leading to the establishment of Roto-Rooter as a recognized brand in the plumbing industry. Over the years, Roto-Rooter has evolved, expanding its services and geographic reach while maintaining its core commitment to quality and customer satisfaction. Today, Roto-Rooter is synonymous with reliable plumbing service, ensuring that homeowners and businesses alike have access to the expertise they need for any plumbing challenge.

Frequently Asked Questions

The initial investment for a Roto-Rooter franchise typically ranges from $150,000 to $300,000, which includes the franchise fee, equipment, and initial marketing costs.