Mr. Appliance Franchise Cost, Revenue & Review 2026
- Investment
- $148K – $273K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 46.7%
- on 134 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mr. Appliance is a home-services franchise providing in-home appliance repair for washers, dryers, refrigerators, and more. Franchisees run a dispatch-and-technician operation managing scheduling, parts, and customer service in a territory.
FranchiseVerdict summary · 2026
A Mr. Appliance franchise requires a total initial investment of $148K – $273K, including a $64K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 46.7% charge-off rate across 134 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $148K – $273K
- 58th pct Home Services
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 8th pct Home Services
- Units
- 311
- 81st pct Home Services
- SBA charge-off
- 46.7%
- % 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 $148K – $273K including a $64K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports gross sales per job rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 46.7% across 134 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +1 franchised outlets in the latest year (14 opened, 13 closed); 8 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Mr. Appliance SPV LLC
- Parent company
- Neighborly Assetco LLC
- FDD Item 1, page 10 of the 2026 FDD
- Ultimate parent
- Nest Holdings LP (KKR-affiliated)
- FDD Item 1, page 11 of the 2026 FDD
- Predecessor
- Mr. Appliance LLC
- Prior franchisor entity
- CEO title
- Contact for financial performance inquiries (President referenced indirectly)
- Glenn Lewis
- Incorporated in
- DE
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $480.8M
- vs $461.7M prior year
Same owner · FDD Item 1, page 11
17 other brands on this site name Nest Holdings LP (KKR-affiliated) as parent or ultimate parent in their own FDD.
- AIRE SERVC
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- Five Star PaintingC
- Glass DoctorC
- HouseMasterD
- Molly MaidC
- Mosquito JoeB
- Mr. ElectricB
- Mr. HandymanC
- Mr. RooterA
- Precision Garage Door ServiceA
- Rainbow InternationalD
- Rainbow RestorationA
- Real Property ManagementB
- ShelfGenieB
- THE GROUNDS GUYSD
- Window GenieD
Portfolio: KKR (Kohlberg Kravis Roberts) (private-equity sponsor) · Neighborly
Grouped by the owner's name as each filing prints it (this page: the 2026 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
- Glenn Lewis
- Headquarters
- TX
- Founded
- 1996
- FDD year
- 2026
- States available
- 44
Can you afford it, and what does the money buy?
Entry cost runs 25% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $64K | $64K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $64K | $159K |
| Total initial investment | $148K | $273K |
Source: Mr. Appliance 2026 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
- $148K – $273K
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Middle of category vs category
- Franchise fee
- $64K – $64K
- Bottom third — review vs category
- Royalty
- 5.0%
- Tiered by sales volume · 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% |
| Technology fee | $375 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $7K – $20K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Mr. Appliance is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Mr. Appliance 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 annual revenue, 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.
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: 2026 FDD
Financial Performance
Reported per transaction, not per outlet
- Item 19 type
- per-transaction figures
- Sample size
- 289 outlets
- vs category median 32 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 1 / 10
- vs category median 4 / 10 · below
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.
Fee burden
Total ongoing fee load of 7.0% (near the Home Services median).
Disclosure
Item 19 reports gross sales per job rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -4.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Mr. Appliance Compares
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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 311
- Opened
- 14
- Last reporting year
- Closed
- 13
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.3%
- Net unit change over 3 years
- 3-yr CAGR
- -4.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 2
- Transferred
- 21
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 8
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
275 current owners across 44 states; 6 former (terminated, transferred or not renewed) listed separately.
- TX 30
- FL 19
- NC 16
- GA 15
- NY 13
- OH 12
- MI 10
- CA 9
- IL 9
- AZ 8
- CO 8
- NJ 8
- +32 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.
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
- 46.7%
- on 134 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)
- 53.3%
- 5-yr charge-off
- 44.4%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 28
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 40.5%
- brand above franchise avg ↑
- Jobs supported
- 787
- 3.1 per loan
- Lender concentration
- 66%
- top lender's share
Borrower mix: 79% went to startups / new businesses, 21% to established operators
Franchise vs independent — in appliance repair and maintenance, franchised businesses charge off at 40.5% vs 21.9% for independents — franchising is associated with 85% higher SBA default risk in this category.
Vintage analysis
Mr. Appliance charge-off rate by loan vintage
Top lenders financing Mr. Appliance franchisees
Showing 3 of 27 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 Mr. Appliance from SBA 7(a) FOIA data.
- Principal loss rate
- 13.2%
- Avg SBA guarantee
- 82%
- Avg interest rate
- 7.65%
- Avg chargeoff amount
- $120K
- Lender concentration
- 65.7%
- Job velocity
- 3.1 per $100K
- Startup risk premium
- +63.9pp
- NAICS benchmark
- 41.4%
- NAICS 811412
- Jobs supported
- 787
Top SBA lendersTop lender holds 66% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 88 | $12.9M | 63.2% |
| 2 | Celtic Bank Corporation | 10 | $1.7M | 50.0% |
| 3 | Stearns Bank National Association | 3 | $305K | 0.0% |
| 4 | Byline Bank | 3 | $2.7M | N/A |
| 5 | Redstone FCU | 2 | $165K | 0.0% |
| 6 | Manufacturers and Traders Trust Company | 2 | $54K | 0.0% |
| 7 | Wells Fargo Bank National Association | 2 | $766K | 0.0% |
| 8 | BayFirst National Bank | 2 | $220K | N/A |
| 9 | TD Bank, National Association | 2 | $655K | N/A |
| 10 | Pathward National Association | 2 | $2.3M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 16 | 4 | 66.7% |
| FLFlorida | 11 | 2 | 100.0% |
| GAGeorgia | 7 | 2 | 50.0% |
| ILIllinois | 7 | 3 | 60.0% |
| PAPennsylvania | 7 | 0 | 0.0% |
| CACalifornia | 6 | 4 | 80.0% |
| INIndiana | 6 | 0 | 0.0% |
| NCNorth Carolina | 6 | 2 | 50.0% |
| MIMichigan | 5 | 0 | 0.0% |
| VAVirginia | 5 | 1 | 33.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 46.7% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 46.7% — 191% 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).
2 prior actions (one franchisor as plaintiff for breach/non-compete settled $100K, one predecessor as defendant by former franchisees settled with no payment); 1 affiliate administrative order (Window Genie/CA, $5,000 penalty); 1 fiscal 2025 suit against franchisee for monies and non-compete.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
No bankruptcy involving the franchisor itself. Several KKR-affiliated portfolio companies disclosed: Marelli Holdings (June 2025 Ch.11), The Collected Group (April 2021, emerged May 2021), Envision Healthcare (May 2023, emerged Nov 2023), Genesis Care (June 2023, emerged Feb 2024), IPI Legacy Liquidation (Dec 2023, emerged Apr 2024), Cafe Coffee Day (insolvency 2024, resolved 2025).
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are the audited COMBINED statements of Neighborly Assetco LLC and Subsidiaries (the franchisor's direct parent and guarantor) for FY ended Dec 31, 2025 (with 2024 comparative); the franchisor Mr. Appliance SPV LLC has no standalone audited statements. Figures originally reported in $000's; values here scaled to dollars. FY2025 total revenues and income $480,797K = franchise service fees and related revenue $353,906K + sales of products and services $126,891K (other_revenue). Net worth = Total Member's equity $2,950,488K. Total liabilities derived as total assets ($3,038,726K) minus member's equity.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 31 / 100 verdict
- 01MEDSystem contracting sharply: -4.6% unit decline YoY suggests deteriorating franchisee performance and retention
- 02HIGHMultiple litigation cases including fraud allegations (KB Industries et al.) and breach of contract disputes signal operational/support conflicts
- 03MINORAdministrative compliance violations in California and Kansas demonstrate regulatory and operational control issues
- 04MINORRelatively 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 3 |
View Item 3 litigation summary
2 prior actions (one franchisor as plaintiff for breach/non-compete settled $100K, one predecessor as defendant by former franchisees settled with no payment); 1 affiliate administrative order (Window Genie/CA, $5,000 penalty); 1 fiscal 2025 suit against franchisee for monies and non-compete.
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 8 hrs
- Training location
- Webinar/Video-Conferencing (Phase I); Waco, TX or virtual (Phase II); Telephone/Webinar (Phase III); Various field locations (Field Training)
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor guidelines and approval
- Franchisor financing
- Offered
- Item 10
- 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
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 $148K – $273K, 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?
Item 19 of the Mr. Appliance FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Mr. Appliance?
Mr. Appliance is franchised by Mr. Appliance SPV LLC. Its parent company is Neighborly Assetco LLC. The ultimate parent named in the FDD is Nest Holdings LP (KKR-affiliated). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Mr. Appliance 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 Mr. Appliance FDD and qualifies whose outlets they describe.
What is Mr. Appliance's franchise failure rate?
Based on SBA 7(a) loan data, Mr. Appliance has a charge-off rate of 46.7% across 134 loans, meaning 46.7% 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 Mr. Appliance franchise locations are there?
As of their most recent FDD filing, Mr. Appliance has 311 total units in the United States, including 311 franchised units and 0 company-owned units. 14 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 verdict score of 31 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.