Klappenberger & SonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A KLAPPENBERGER & SON franchise requires a total initial investment of $85K – $145K, including a $47K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $85K – $145K
- 24th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 11
- 20th pct Home Services
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 10% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $85K – $145K including a $47K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 95/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hook & Wilson, LLC
- Incorporated in
- MD
- HQ
- 902 Bluffview Drive, Myrtle Beach, South Carolina 29579
- Auditor
- Alta CPA Group, LLC
- Audited financials
- Franchisor revenue
- $612K
- vs $482K prior year
Overview
About
Klappenberger & Son franchisees likely operate a service or product-based business (specific category unclear from data provided). Daily operations presumably involve customer service delivery, inventory management if applicable, and local market sales activities under the Klappenberger brand.
- CEO
- David Klappenberger
- Headquarters
- SC
- Founded
- 2014
- FDD year
- 2026
- States available
- 5
FDD Item 7 · 2026 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $47K | $47K | |
| Rent, Utilities and Security Deposit | — | — | |
| Signage | $93 | $173 | |
| Service Vehicle | $230 | $10K | |
| Signage for Vehicle | $2K | $3K | |
| Business Insurance | $3K | $7K | |
| Painting Equipment | $2K | $4K | |
| Hand Tools | $600 | $600 | |
| Power Tools | $700 | $700 | |
| Uniforms and Printed Marketing Materials | $1K | $2K | |
| Office Equipment, Furniture and Supplies | $0 | $800 | |
| Computer Hardware & General Software | $0 | $2K | |
| Technology Support | $900 | $900 | |
| Initial Inventory | — | — | |
| Payroll Processing | — | — | |
| Training Expenses | $0 | $2K | |
| Launch Marketing | $8K | $8K | |
| Necessary Licenses and Permits | $75 | $3K | |
| Professional Advisor Fees | $1K | $5K | |
| Additional Funds (6 Months) | $25K | $50K | |
| Total initial investment | $92K | $145K |
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
- $85K – $145K
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Near category avg vs category
- Franchise fee
- $20K – $47K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.3%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.3% of gross sales |
| Technology fee | $350 |
| Transfer fee | $38K |
| Renewal fee | $2K |
| Total fee load | 8.3% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How Klappenberger & Son Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 9.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -10.0%
- Net unit change last year
- 3-yr CAGR
- -18.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 90.0%
- Units that stayed open
- Termination rate
- 11.1%
- 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 loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $421K
- Median loan
- $105K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Klappenberger & Son's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A declining 11-unit franchise system with undisclosed financial performance, going concern warnings, and aggressive fee structure presents substantial risk of franchisee failure and franchisor collapse.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Alta CPA Group, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 95 / 100 rating
- 01MINORDeclining unit count: 11 total units with -10% YoY contraction indicates system shrinkage and potential market viability issues
- 02MEDNo financial disclosure: Average revenue and net income not disclosed in Item 19, preventing franchisee ROI validation and earnings claims substantiation
- 03HIGHGoing concern status is FALSE: Suggests financial instability at franchisor level, raising questions about support, marketing fund solvency, and long-term viability
- 04MEDHigh initial franchise fee relative to unit count: $47,000 franchise fee with only 11 units indicates limited brand recognition and smaller support infrastructure
- 05MINORTiered royalty structure creates misaligned incentives: Lower 4% rate only applies above $1M revenue—a threshold most failing franchisees may never reach
- 06MEDExtended 10-year term locks franchisees into struggling system with limited exit flexibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Area of Primary Responsibility |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | South Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 119 hrs
- On-the-job training
- 55 hrs
- Training location
- Virtual and various locations
- POS system
- Intuit Quick Books online accounting software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Intuit Quick Books online accounting software
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KLAPPENBERGER & SON · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KLAPPENBERGER & SON franchise?
The total investment to open a KLAPPENBERGER & SON franchise ranges from $85K – $145K, with an initial franchise fee of $47K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KLAPPENBERGER & SON franchise owners earn?
KLAPPENBERGER & SON does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is KLAPPENBERGER & SON's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KLAPPENBERGER & SON (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many KLAPPENBERGER & SON franchise locations are there?
As of their most recent FDD filing, KLAPPENBERGER & SON has 11 total units in the United States, including 9 franchised units and 0 company-owned units.
Is KLAPPENBERGER & SON a good franchise to buy?
FranchiseVerdict rates KLAPPENBERGER & SON as a F-grade franchise with a risk score of 95 out of 100, 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.
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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.