iFoam Franchise Cost, Revenue & Review 2026
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 unit revenue was $1.4M[2]. SBA 7(a) loans show a 6.1% charge-off rate across 66 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $172K – $266K
- 72nd pct Home Services
- Avg gross sales
- $1.4M
- 27th pct Home Services
- Royalty
- N/A
- Units
- 90
- 57th pct Home Services
- SBA charge-off
- 6.1%
- % 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 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 $172K – $266K including a $15K franchise fee.
- RETURNSAverage unit revenue of $1.4M/year (median $1.2M).
- RISKVerdict C (Average), verdict score 39/100 (higher is better). SBA loan charge-off rate of 6.1% across 66 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
- 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).
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 is about average for a 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 10% above the home services norm.
Source: FDD 2025 · 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
$136K
10.0% margin
Unlevered ROIC
55%
EBITDA / total invested capital
Payback
22 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 iFoam unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
55%
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 iFoam units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$815K
on $4.1M purchase
Total debt
$3.3M
SBA $2.0M + 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: 2025 FDD
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.2M
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→$5.4M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- 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 321 Home Services brands
Revenue is 6.2x 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 $1.4M/year in gross sales. Revenue-to-investment ratio: 6.2x.
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 averages
How iFoam Compares
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
- 0
- 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
3-year detail · Item 20
- Opened (3yr)
- 18
- Closed (3yr)
- 0
- Terminated (3yr)
- 48
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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).
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
- 6.1%
- 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)
- 93.9%
- 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 below 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.
Premium insight
SBA Lending Report
Deep-dive into iFoam's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 6.1% — 62% 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
iFoam presents HIGH RISK due to collapsing unit count (-25.9%), active fraud litigation, going concern issues, and lack of financial transparency—avoid unless substantial evidence of turnaround emerges.
Litigation (Item 3)
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)
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 39 / 100 verdict
- 01MEDSevere unit decline of -25.9% YoY (90 units) signals system deterioration and franchisee dissatisfaction
- 02HIGHGoing Concern = False indicates franchisor may lack financial stability to support franchise operations
- 03HIGHActive fraud/misrepresentation lawsuit from former franchisee combined with internal ownership arbitration suggests governance dysfunction and potential credibility issues
- 04MEDNet income not disclosed despite $1.36M average revenue—lack of transparency on profitability is a major red flag
- 05MEDHigh 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 |
| 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
FDD download
iFoam · FDD (2025) PDF
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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 6.1% across 66 loans, meaning 6.1% 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 C-grade franchise with a verdict score of 39 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.