FranchiseVerdict
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FV-01704·STRONGExcellent86

Mr. Electric

Home Services - Plumbing & HVACFranchising since 1994Website
Investment
$152K – $315K
71st pct Plumbing & HV…
Avg revenue
63rd pct Plumbing & HV…
Royalty
6.0%
21st pct Plumbing & HV…
Units
189
75th pct Plumbing & HV…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $152K – $315K including a $43K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 228 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
MR. ELECTRIC SPV LLC
Parent company
Neighborly Assetco LLC
Incorporated in
Delaware
HQ
1010 North University Parks Drive, Waco, Texas 76707
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$384K
vs $452K prior year

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 Mr. Electric unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $152K–$315K
Working capital
$
FDD reports $50K–$100K

Unlevered ROIC · per unit

27%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$308K
Payback
45 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Mr. Electric franchisees operate local residential and commercial electrical service businesses, dispatching technicians to perform repairs, installations, and maintenance. Daily operations include customer acquisition/scheduling, technician management, inventory control, and service delivery with the Mr. Electric brand.

CEO
Michael Anthony Davis
Founded
2020
FDD year
2024
States available
40

Item 7 · what it costs

The Vitals

Total investment
$152K – $315K
All-in to open one unit
Liquid capital
$50K – $100K
Cash you must have on hand
Franchise fee
$43K
Royalty
6.0%
License Fee · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
189
Opened
27
Last reporting year
Closed
18
Turnover rate
9.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+5.0%
Net unit change last year
3-yr CAGR
+11.2%
Compounded over last 3 years
2022
189+9
Franchised units
2023
180
Franchised units
2024
170
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 27 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 27 states
Not registered

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.

Total loans
228
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

44
Risk · 0-100
STRONG44 / 100

Opaque financial performance combined with affiliate litigation and slow growth creates material uncertainty about unit economics and franchisor compliance culture.

Score breakdown · what drove the 44 / 100 rating

  1. 01MINORNo Item 19 financial performance disclosure — cannot verify if $152k-$314.5k investment generates positive ROI or matches advertised averages
  2. 02HIGHAffiliate litigation (Window Genie, Molly Maid) signals potential systemic franchise compliance issues within parent company's multi-brand portfolio
  3. 03MINORModest unit growth (5.0% YoY on 189 units = ~9 net new franchises) suggests market saturation or difficulty recruiting/retaining franchisees
  4. 04MED6% royalty plus undisclosed operating costs create margin pressure in service-based electrical business with high labor costs
  5. 05MINORHigh franchise fee ($42,500) relative to low initial investment floor ($152k) indicates significant upfront cost burden before working capital

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population based
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
50 hrs
On-the-job training
0 hrs
POS system
ServiceTitan
Operating tech stack

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

92 numbers

Locked
(515) 282-••••
IA
(513) 230-••••
OH
(772) 777-••••
FL

One-time purchase · CSV download · Validation questions included

FDD download

Mr. Electric · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above