Generator Supercenter Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Generator Supercenter is a home standby generator franchise selling, installing, and servicing brands like Generac. Franchisees run retail-and-service operations, managing sales, installation crews, and maintenance contracts in a territory.
FranchiseVerdict summary · 2026
A Generator Supercenter franchise requires a total initial investment of $505K – $898K, including a $50K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $4.6M[2]. SBA 7(a) loans show a 3.7% charge-off rate across 27 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $505K – $898K
- 43rd pct Retail
- Avg gross sales
- $4.6M
- 17th pct Retail
- Royalty
- 4.0%
- 4th pct Retail
- Units
- 65
- 23rd pct Retail
- SBA charge-off
- 3.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $505K – $898K including a $50K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $4.6M/year (median $3.6M).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 3.7% across 27 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG14 units terminated last reporting year (21.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Generator Supercenter Franchising, LLC
- Parent company
- Generator Supercenter, Inc.
- Predecessor
- and Affiliate
- Prior franchisor entity
- CEO title
- CEO and President
- Matthew Metcalfe
- Incorporated in
- TX
- HQ
- 23133 State Highway 249, Tomball, Texas 77375
- Auditor
- Carr, Riggs & Ingram, L.L.C.
- Audited financials
- Franchisor revenue
- $12.4M
- vs $12.8M prior year
Affiliated brands
- Generator Supercenter of Eastern Michigan
- Generator Supercenter of Fort Worth
- Generator Supercenter of College Station
- Generator Supercenter of Houston
- Generator Supercenter of Waco
- Generator Supercenter of Rockwall
- Generator Supercenter of Lufkin
- Generator Supercenter of Tyler
- Generator Supercenter of Middle Tennessee
- Generator Supercenter of Greenville
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Matthew Metcalfe
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2026
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost runs 70% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Real Estate / Rentnot refundable | $11K | $25K | |
| Utilitiesnot refundable | $700 | $2K | |
| Leasehold Improvementsnot refundable | $78K | $200K | |
| Initial Marketing Plannot refundable | $25K | $25K | |
| Furniture, Fixtures, and Equipmentnot refundable | $15K | $50K | |
| Computer Systems/Equipment and Softwarenot refundable | $4K | $8K | |
| Insurancenot refundable | $3K | $6K | |
| Vehiclesnot refundable | $85K | $119K | |
| Signagenot refundable | $9K | $20K | |
| Office Expensesnot refundable | $2K | $3K | |
| Inventory / Stocknot refundable | $115K | $140K | |
| Licenses and Permitsnot refundable | $2K | $4K | |
| Dues and Subscriptionsnot refundable | $1K | $2K | |
| Professional Fees (lawyer, accountant, etc.)not refundable | $2K | $5K | |
| Travel, lodging and meals for initial trainingnot refundable | $3K | $6K | |
| Home generator for Franchiseenot refundable | $0 | $14K | |
| Additional funds (for first 3 months)not refundable | $100K | $220K | |
| Total initial investment | $505K | $898K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $505K – $898K
- Middle of category vs category
- Liquid capital req'd
- $100K – $220K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 4.0%
- tiered · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $750 |
| Transfer fee | $50K |
| Renewal fee | $25K |
| Inventory (initial) | $115K – $140K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 379% above the retail norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$507K
11.0% margin
Unlevered ROIC
59%
EBITDA / total invested capital
Payback
20 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Generator Supercenter unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
59%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Generator Supercenter units return on equity?
Equity IRR · 5-yr
30.6%
3.80× MOIC
Year-1 DSCR
2.63×
EBITDA ÷ debt service
Equity required
$7.9M
on $18.5M purchase
Total debt
$10.5M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $4.6M
- Per unit, per year
- Median gross sales
- $3.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenues and cogs
- Sample size
- 45 outlets
- vs category median 47
- Range (low → high)
- $945K→$29.8M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Revenue is 6.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $4.6M/year in gross sales. Median is $3.6M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 6.6x.
Fee burden
Total ongoing fee load of 5.0% — below the Retail average of 8.9%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -5.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail averages
How Generator Supercenter Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 65
- Opened
- 29
- Last reporting year
- Closed
- 0
- Terminated
- 14
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 20.4%
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Net growth (3-yr)
- -5.3%
- Net unit change over 3 years
- 3-yr CAGR
- -5.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 0
- Terminated (3yr)
- 11
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 3
- Franchisor bought back
- Termination rate
- 5.6%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 27
- Loan volume
- $13.5M
- Median loan
- $363K
- 50th percentile
- Charge-off rate
- 3.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 96.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 1
- Typical loan rate
- 7.9%
- avg rate to borrowers
- vs industry
- 16.7%
- brand is below its industry ↓
- Jobs supported
- 299
- 2.2 per loan
- Lender concentration
- 19%
- top lender's share
Borrower mix: 81% went to startups / new businesses, 19% to established operators
Top lenders financing Generator Supercenter franchisees
Showing 3 of 15 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Generator Supercenter's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 3.7% — 77% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Generator Supercenter presents HIGH RISK due to contracting franchise network (-11.5% YoY), concealed profitability metrics, active litigation involving breach of franchise agreements, and a financially unstable franchisor—making unit economics and franchisee success rates impossible to validate.
Litigation (Item 3)
2 case reference(s): 1 pending, 1 settled.
Largest disclosed settlement: $516,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, L.L.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORUnit count declining 11.5% YoY (65 units) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation for breach of franchise agreements and trade secret misappropriation signals operational/legal conflicts
- 03MINORPrior settled trademark/unfair competition case indicates history of disputes with franchisees
- 04MEDHigh royalty burden (4-6% + $2,000 minimum monthly) on undisclosed net income creates cash flow uncertainty
- 05MEDInvestment range of $504K-$898K is substantial with no disclosed average unit profitability to justify ROI
- 06HIGH'Going Concern' marked false suggests potential financial instability in franchisor operations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 20 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Harris County, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 8 |
View Item 3 litigation summary
2 case reference(s): 1 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 24 hrs
- Training location
- Tomball, Texas
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- RazorSync POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: RazorSync POS
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Generator Supercenter · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Generator Supercenter franchise?
The total investment to open a Generator Supercenter franchise ranges from $505K – $898K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Generator Supercenter franchise owners earn?
According to Item 19 of the Generator Supercenter FDD, the average gross sales per unit is $4.6M. The median is $3.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Generator Supercenter FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Generator Supercenter FDD and qualifies whose outlets they describe.
What is Generator Supercenter's franchise failure rate?
Based on SBA 7(a) loan data, Generator Supercenter has a charge-off rate of 3.7% across 27 loans, meaning 3.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Generator Supercenter franchise locations are there?
As of their most recent FDD filing, Generator Supercenter has 65 total units in the United States, including 54 franchised units and 11 company-owned units. 29 new units were opened in the latest reporting year.
Is Generator Supercenter a good franchise to buy?
FranchiseVerdict rates Generator Supercenter as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.