Bottom line
- Total investment $216K – $409K including a $65K franchise fee.
- Average unit revenue of $1.4M/year. Estimated payback in 0.9 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 75 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one INSULATION COMMANDOS unit return on the cash you put in?
Unlevered ROIC · per unit
46%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 INSULATION COMMANDOS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
Overview
About
Insulation Commandos franchisees operate residential and commercial insulation installation services, managing crews to assess properties, recommend insulation solutions (fiberglass, blown-in, spray foam, etc.), and execute installations. Day-to-day work involves job scheduling, customer consultations, team supervision, quality control, and account management in a local service territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Insulation Commandos presents moderate-to-high risk due to explosive unsustainable growth metrics, lack of transparent financial performance disclosures, and high capital requirements relative to verifiable profitability claims.
Score breakdown · what drove the 39 / 100 rating
- 01MINORExplosive unit growth of 3100% YoY suggests either newly launched franchise system or severe data anomaly — growth this extreme is unsustainable and indicates instability
- 02MINORHigh initial investment range ($215k-$408k) combined with 6% royalty (or minimum monthly fee) creates significant breakeven burden for new franchisees
- 03MINORWide investment range ($193k spread) suggests inconsistent territory valuations and unclear cost structure — lack of transparency on what drives costs
- 04MEDMinimum royalty structure not disclosed — if monthly minimum is high, could create cash flow pressure for early-stage locations
- 05MEDNo Item 19 financial performance representations in FDD — $340k avg net income cannot be independently verified against disclosed figures
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
INSULATION COMMANDOS · FDD (2025) PDF