Mr. ApplianceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mr. Appliance franchise requires a total initial investment of $117K – $215K, including a $64K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 20.9% charge-off rate across 134 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $117K – $215K
- 40th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 5.0%
- 5th pct Home Services
- Units
- 310
- 73rd pct Home Services
- SBA default
- 20.9%
- 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
20.9% of SBA loans charged off across 134 loans, above the 16% franchise average.
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $117K – $215K including a $64K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "gross_sales" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict D (Below Average) with a risk score of 76/100. SBA loan charge-off rate of 20.9% across 134 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Item 19 reports "gross_sales" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MR. APPLIANCE SPV LLC
- Parent company
- Neighborly Assetco LLC
- Incorporated in
- DE
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $451.9M
- vs $461.7M prior year
Overview
About
Mr. Appliance franchisees operate mobile appliance repair services, dispatching technicians to residential customer homes to diagnose and repair washers, dryers, dishwashers, refrigerators, and other appliances. Franchisees manage their own technician teams, scheduling, parts inventory, customer billing, and local marketing while paying the franchisor 5-7% royalties and adhering to brand standards and service protocols.
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 1996
- FDD year
- 2025
- States available
- 44
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $64K | $64K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $38K | $121K |
| Total initial investment | $117K | $215K |
Source: Mr. Appliance 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
- $117K – $215K
- Near category avg vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $64K – $64K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
This brand's FDD disclosed "gross_sales" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Home Services averages
How Mr. Appliance Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 310
- Opened
- 9
- Last reporting year
- Closed
- 8
- Turnover rate
- 2.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -4.6%
- Net unit change last year
- 3-yr CAGR
- -4.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 19
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 44 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
- 134
- Loan volume
- $25.5M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 20.9%
- 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)
- 53.3%
- 5-yr charge-off
- 44.4%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 28
Vintage analysis
Mr. Appliance charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mr. Appliance'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 15 states
- Startup risk premium and job creation velocity
- 15-year lending trend
Instant access. No subscription.
A 20.9% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mr. Appliance is a contracting franchise system with active fraud litigation, regulatory violations, undisclosed financials, and franchisor going concern issues—presenting material risk to new franchisees.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 76 / 100 rating
- 01MEDSystem contracting sharply: -4.6% unit decline YoY suggests deteriorating franchisee performance and retention
- 02HIGHGoing concern status is FALSE, indicating potential financial instability at franchisor level
- 03HIGHMultiple litigation cases including fraud allegations (KB Industries et al.) and breach of contract disputes signal operational/support conflicts
- 04MINORNo Item 19 (financial performance) disclosure prevents validation of $116.5K-$214.8K investment ROI claims
- 05MINORAdministrative compliance violations in California and Kansas demonstrate regulatory and operational control issues
- 06MINORRelatively high franchise fee ($63,750) combined with 5-7% royalties creates high break-even threshold for declining system
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 | 1 |
| Territory type | Population-based |
| 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 | Texas |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 8 hrs
- POS system
- SmartWare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SmartWare
Item 20 · call current owners
Franchisee Contacts
281 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mr. Appliance · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mr. Appliance franchise?
The total investment to open a Mr. Appliance franchise ranges from $117K – $215K, with an initial franchise fee of $64K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mr. Appliance franchise owners earn?
Mr. Appliance 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 Mr. Appliance's franchise failure rate?
Based on SBA 7(a) loan data, Mr. Appliance has a charge-off rate of 20.9% across 134 loans, meaning 20.9% 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 Mr. Appliance franchise locations are there?
As of their most recent FDD filing, Mr. Appliance has 310 total units in the United States, including 315 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is Mr. Appliance a good franchise to buy?
FranchiseVerdict rates Mr. Appliance as a D-grade franchise with a risk score of 76 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.