Mr. Electric Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mr. Electric is a home-services franchise providing residential and commercial electrical repair, installation, and upgrades. Franchisees run an operation dispatching licensed electricians and managing customers in a territory.
FranchiseVerdict summary · 2026
A Mr. Electric franchise requires a total initial investment of $160K – $357K, including a $43K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 9.6% charge-off rate across 136 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $160K – $357K
- 64th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 15th pct Home Services
- Units
- 236
- 78th pct Home Services
- SBA charge-off
- 9.6%
- % 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 avg · 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 $160K – $357K including a $43K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports Average/Median/Highest/Lowest Gross Sales for four separate cohorts segmented by franchisee territory population size (74,000-300,000; 300,001-500,000; 500,001-1,000,000; 1,000,001-5,000,000), each further broken into top10/top25/top50/bottom50/bottom25/bottom10/100% percentile bands for the 2025 Reporting Period (169 of 236 Reporting Businesses). No single blended average/net income figure is given at the whole-system level, so avg_gross_sales/avg_net_income are left null; see item19_cohorts for the 100% row of each territory-size cohort.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better). SBA loan charge-off rate of 9.6% across 136 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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. Electric SPV LLC
- Parent company
- Neighborly Assetco LLC
- Ultimate parent
- Nest Holdings LP (KKR-affiliated funds)
- Predecessor
- Mr. Electric LLC
- Prior franchisor entity
- CEO title
- President
- Joshua McCormick
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $480.8M
- vs $461.7M prior year
Overview
About
- CEO
- Joshua McCormick
- Headquarters
- TX
- Founded
- 1994
- FDD year
- 2026
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost runs 15% 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 | $43K | $43K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $67K | $215K |
| Total initial investment | $160K | $357K |
Source: Mr. Electric 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
- $160K – $357K
- Middle of category vs category
- Liquid capital req'd
- $50K – $100K
- Bottom third — review vs category
- Franchise fee
- $43K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $270 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Mr. Electric did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Mr. Electric unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
25%
Below the 30–60% attractive-franchise band
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
Item 19 reports Average/Median/Highest/Lowest Gross Sales for four separate cohorts segmented by franchisee territory population size (74,000-300,000; 300,001-500,000; 500,001-1,000,000; 1,000,001-5,000,000), each further broken into top10/top25/top50/bottom50/bottom25/bottom10/100% percentile bands for the 2025 Reporting Period (169 of 236 Reporting Businesses). No single blended average/net income figure is given at the whole-system level, so avg_gross_sales/avg_net_income are left null; see item19_cohorts for the 100% row of each territory-size cohort.
- Item 19 type
- Average/median Gross Sales by territory-population cohort (4 cohorts), 2025 Reporting Period
- Sample size
- 169 outlets
- vs category median 32 · large
- Range (low → high)
- $36K→$13.3M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 321 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 8.0% (near the Home Services average).
Disclosure
Item 19 reports Average/median Gross Sales by territory-population cohort (4 cohorts), 2025 Reporting Period rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 31.1% CAGR over 3 years across 236 units — operators are staying and new ones are joining.
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 averages
How Mr. Electric Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 236
- Opened
- 40
- Last reporting year
- Closed
- 9
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +31.1%
- Net unit change over 3 years
- 3-yr CAGR
- +31.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 40
- Closed (3yr)
- 9
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 14
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 43 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
- 136
- Loan volume
- $23.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 9.6%
- 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)
- 90.4%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 47
- Defaults
- 13
- Typical loan rate
- 8.8%
- avg rate to borrowers
- Franchised industry avg
- 16.5%
- brand beats franchise avg ↓
- Jobs supported
- 799
- 3.4 per loan
- Lender concentration
- 46%
- top lender's share
Borrower mix: 86% went to startups / new businesses, 14% to established operators
Franchise vs independent — in electrical contractors, franchised businesses charge off at 16.5% vs 15.5% for independents — franchising is associated with 6% higher SBA default risk in this category.
Vintage analysis
Mr. Electric charge-off rate by loan vintage
Top lenders financing Mr. Electric franchisees
Showing 3 of 47 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.
Premium insight
SBA Lending Report
Deep-dive into Mr. Electric'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
- 26-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 9.6% — 40% below the 16.0% national norm, i.e. lower 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
Opaque financial performance combined with affiliate litigation and slow growth creates material uncertainty about unit economics and franchisor compliance culture.
Litigation (Item 3)
One CA Dept. of Business Oversight consent order (2017) against a predecessor affiliate of Window Genie (not franchisor); franchisor initiated 1 lawsuit against a franchisee (Mr. Electric SPV LLC and Mr. Handyman SPV LLC v. Anbramar Consumer Enterprise Corp et al., filed Sept 2025) to confirm no franchisor breach of marketing obligations. No litigation against franchisor by franchisees disclosed.
Largest disclosed settlement: $5,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Item 4 discloses bankruptcy proceedings of unrelated KKR-portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) not involving the Franchisor itself.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 78 / 100 verdict
- 01HIGHAffiliate litigation (Window Genie, Molly Maid) signals potential systemic franchise compliance issues within parent company's multi-brand portfolio
- 02MINORModest unit growth (5.0% YoY on 189 units = ~9 net new franchises) suggests market saturation or difficulty recruiting/retaining franchisees
- 03MED6% royalty plus undisclosed operating costs create margin pressure in service-based electrical business with high labor costs
- 04MINORHigh 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
What are you signing up for?
Ongoing fees run about 8.0% 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 |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 12 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas (only if court invalidates jury/class-action waiver; otherwise litigation) |
| Jury trial waiver | No |
| Governing law | Texas |
| Litigation count | 2 |
View Item 3 litigation summary
One CA Dept. of Business Oversight consent order (2017) against a predecessor affiliate of Window Genie (not franchisor); franchisor initiated 1 lawsuit against a franchisee (Mr. Electric SPV LLC and Mr. Handyman SPV LLC v. Anbramar Consumer Enterprise Corp et al., filed Sept 2025) to confirm no franchisor breach of marketing obligations. No litigation against franchisor by franchisees disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 0 hrs
- Training location
- Waco, Texas (Phase II) / remote or learning portal (Phase I); field training 2-3 days at a designated existing franchisee
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee (with franchisor site-selection guidelines and approval)
- Franchisor financing
- Offered
- Item 10
- POS system
- ServiceTitan
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ServiceTitan
Item 20 · call current owners
Franchisee Contacts
214 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mr. Electric · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mr. Electric franchise?
The total investment to open a Mr. Electric franchise ranges from $160K – $357K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mr. Electric franchise owners earn?
Mr. Electric 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 Item 19 in the Mr. Electric 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. Electric FDD and qualifies whose outlets they describe.
What is Mr. Electric's franchise failure rate?
Based on SBA 7(a) loan data, Mr. Electric has a charge-off rate of 9.6% across 136 loans, meaning 9.6% 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. Electric franchise locations are there?
As of their most recent FDD filing, Mr. Electric has 236 total units in the United States, including 236 franchised units and 0 company-owned units. 40 new units were opened in the latest reporting year.
Is Mr. Electric a good franchise to buy?
FranchiseVerdict rates Mr. Electric as a A-grade franchise with a verdict score of 78 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Mr. Electric, you can request corrections or provide updated information.
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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.