iFoam Franchise Cost, Revenue & Review 2026
- Investment
- $172K – $266K
- Disclosed sales
- $1.4M
- gross sales, not profit
- SBA charge-off
- 26.7%
- on 66 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
iFoam is a home-services franchise installing spray-foam and other insulation for homes and businesses. Franchisees run a crew-based operation handling assessments, installs, and scheduling in a territory.
FranchiseVerdict summary · 2026
A iFoam franchise requires a total initial investment of $172K – $266K, including a $15K – $20K franchise fee. Per the 2025 FDD, average revenue per franchisee was $1.4M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 26.7% charge-off rate across 66 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 6 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $172K – $266K
- 71st pct Home Services
- Avg gross sales
- $1.4M
- Per franchisee, not per outlet
- Royalty
- Flat fee
- Units
- 90
- 57th pct Home Services
- SBA charge-off
- 26.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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 $172K – $266K including a $15K franchise fee.
- RETURNSAverage revenue per franchisee of $1.4M/year (median $1.2M). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict F (Weakest tier), verdict score 24/100 (higher is better). SBA loan charge-off rate of 26.7% across 66 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -30 franchised outlets in the latest year (18 opened, 48 closed); 4 signed but not yet open (Item 20).
- FLAG48 units terminated last reporting year (53.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HPB Foam LLC
- Parent company
- JEZ Investments LLC
- FDD Item 1, page 11 of the 2025 FDD
- Predecessor
- I-Foam LLC / iFOAM Franchise Group LLC
- Prior franchisor entity
- CEO title
- Group President
- Michael McAllister
- Incorporated in
- PA
- HQ
- 2525 N. 117th Avenue, Third Floor, Omaha, NE 68164
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $4.0M
- vs $3.1M prior year
Affiliated brands
- HorsePower Nation
- HPB Accounting
- HPB Foam Holdings
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 11
8 other brands on this site name JEZ Investments LLC as parent or ultimate parent in their own FDD.
- BUMBLE BEE BLINDSA
- Blingle!B
- Gatsby GlassB
- Groovy Hues Peace Love Paint PowerwashB
- Heroes Lawn CareB
- Mighty Dog RoofingA
- Stand Strong FencingA
- Varsity ZoneC
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Michael McAllister
- Headquarters
- NE
- Founded
- 2021
- FDD year
- 2025
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 30% above the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $137K | $211K |
| Total initial investment | $172K | $266K |
Source: iFoam 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $172K – $266K
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $40K
- Middle of category vs category
- Franchise fee
- $15K – $20K
- Top 40% of category vs category
- Royalty
- Greater of $3,000/month or $3.00 per 1,000 general popula…
- Ad fund
- No required advertising fund contribution; one-time Brand…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of $3,000/month or $3.00 per 1,000 general population per Protected Territory |
| Technology fee | $60 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Inventory (initial) | $19K – $25K |
What do units actually make?
Average unit sales run 131% above the home services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for iFoam until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$249K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one iFoam unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $1.4M
- Per franchisee, per year — not per outlet
- Median gross sales
- $1.2M
- Per franchisee, not per outlet
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 sales
- Sample size
- 20 franchisees
- vs category median 32
- Range (low → high)
- $88K→$5.4MCited, not corroborated — printed on page 70 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 319 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $1.4M/year in gross sales.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 196.6% CAGR over 3 years across 90 units — operators are staying and new ones are joining.
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 Home Services medians
How iFoam Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 90
- Opened
- 18
- Last reporting year
- Closed
- 48
- Terminated
- 48
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 55.8%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- -25.9%
- Net unit change over 3 years
- 3-yr CAGR
- +196.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 48
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.04 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
- Transfer rate
- 2.5%
- Owners selling to other franchisees
- Continuity rate
- 64.2%
- Units that stayed open
- Termination rate
- 40.0%
- Franchisor-initiated terminations
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
Available to sell in · Item 12
- California
- Hawaii
- Maryland
- New York
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
22 current owners across 15 states.
- CO 3
- TX 3
- AL 2
- FL 2
- NC 2
- AR 1
- AZ 1
- GA 1
- ID 1
- MO 1
- ND 1
- NE 1
- +3 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 66
- Loan volume
- $28.4M
- Median loan
- $626K
- 50th percentile
- Charge-off rate
- 26.7%
- on 66 loans · 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)
- 73.3%
- 5-yr charge-off
- 26.7%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 4
- Typical loan rate
- 9.9%
- avg rate to borrowers
- vs industry
- 15.9%
- brand is above its industry ↑
- Jobs supported
- 594
- 2.1 per loan
- Lender concentration
- 92%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing iFoam franchisees
Showing 3 of 4 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for iFoam from SBA 7(a) FOIA data.
- Principal loss rate
- 2.3%
- Avg SBA guarantee
- 64%
- Avg interest rate
- 9.92%
- Avg chargeoff amount
- $164K
- Lender concentration
- 92.4%
- Job velocity
- 2.1 per $100K
- NAICS benchmark
- 15.9%
- NAICS 238310
- Jobs supported
- 594
Top SBA lendersTop lender holds 92% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 61 | $25.0M | 26.7% |
| 2 | Pinnacle Bank | 3 | $2.0M | N/A |
| 3 | First Bank of the Lake | 1 | $709K | N/A |
| 4 | OakStar Bank | 1 | $700K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 21 | 4 | 80.0% |
| COColorado | 8 | 0 | -- |
| TNTennessee | 5 | 0 | 0.0% |
| FLFlorida | 4 | 0 | 0.0% |
| GAGeorgia | 4 | 0 | 0.0% |
| SCSouth Carolina | 4 | 0 | 0.0% |
| UTUtah | 4 | 0 | -- |
| ALAlabama | 2 | 0 | 0.0% |
| IDIdaho | 2 | 0 | 0.0% |
| ILIllinois | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 26.7% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 26.7% — 66% above the 16.0% national norm, i.e. higher 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1 pending civil action (Schaefer v. HPB Foam LLC, E.D.Pa.) alleging fraud, misrepresentation, and breach of contract by former franchisee; 1 material civil action involving parent/affiliate (Beutler v. Skolnick et al., AAA arbitration over governance/ownership disputes)
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
2024 audited revenue of $4,015,149 comprises franchise fees $2,485,722, royalties $939,354, and other service fees $590,073. Fiscal year end December 31. Statements audited by Forvis Mazars, LLP; company operates with a members' deficit of $(1,765,342).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 24 / 100 verdict
- 01MEDSevere unit decline of -25.9% YoY (90 units) signals system deterioration and franchisee dissatisfaction
- 02HIGHActive fraud/misrepresentation lawsuit from former franchisee combined with internal ownership arbitration suggests governance dysfunction and potential credibility issues
- 03MEDNet income not disclosed despite $1.36M average revenue—lack of transparency on profitability is a major red flag
- 04MEDHigh royalty structure (greater of $3,000/month or $3 per 1,000 population) may be unsustainable given undisclosed margins and shrinking unit base
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 200,000 |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Bucks County, Pennsylvania |
| Jury trial waiver | Yes |
| Governing law | PA |
| Litigation count | 2 |
View Item 3 litigation summary
1 pending civil action (Schaefer v. HPB Foam LLC, E.D.Pa.) alleging fraud, misrepresentation, and breach of contract by former franchisee; 1 material civil action involving parent/affiliate (Beutler v. Skolnick et al., AAA arbitration over governance/ownership disputes)
Items 10, 11
Training & Operations
- Classroom training
- 112 hrs
- On-the-job training
- 32 hrs
- Training location
- Virtual (Phase I and II); Omaha, NE (Phase III)
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- ServiceTitan
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ServiceTitan
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a iFoam franchise?
The total investment to open a iFoam franchise ranges from $172K – $266K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do iFoam franchise owners earn?
According to Item 19 of the iFoam FDD, the average gross sales per unit is $1.4M. The median is $1.2M. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns iFoam?
iFoam is franchised by HPB Foam LLC. Its parent company is JEZ Investments LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the iFoam 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 iFoam FDD and qualifies whose outlets they describe.
What is iFoam's franchise failure rate?
Based on SBA 7(a) loan data, iFoam has a charge-off rate of 26.7% across 66 loans, meaning 26.7% 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 iFoam franchise locations are there?
As of their most recent FDD filing, iFoam has 90 total units in the United States, including 86 franchised units and 4 company-owned units. 18 new units were opened in the latest reporting year.
Is iFoam a good franchise to buy?
FranchiseVerdict rates iFoam as a F-grade franchise with a verdict score of 24 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.