North Central Insulation Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
North Central Insulation is a home services franchise selling and installing residential and commercial insulation. Franchisees run local operations, managing sales, installation crews, and accounts.
FranchiseVerdict summary · 2026
A North Central Insulation franchise requires a total initial investment of $87K – $170K, including a $40K franchise fee and an ongoing 2.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $87K – $170K
- 26th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 2.0%
- 0th pct Home Services
- Units
- 7
- 14th pct Home Services
- SBA charge-off
- N/A
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 $87K – $170K including a $40K franchise fee, 2.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Independent Operators United, LLC
- Predecessor
- North Central Insulation (sole proprietorship, formed June 1, 1980)
- Prior franchisor entity
- CEO title
- President
- Rhett Dudgeon
- Incorporated in
- OH
- HQ
- 7539 State Route 13, Bellville, Ohio 44813
Affiliated brands
- North Central Insulation
- North Central Insulation of Kentucky
- North Central Insulation of Pennsylvania
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Rhett Dudgeon
- Headquarters
- OH
- Founded
- 2025
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 43% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $27K | $80K |
| Total initial investment | $87K | $170K |
Source: North Central Insulation 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
- $87K – $170K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $50K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 2.0%
- formula · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 2.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $99 |
| Transfer fee | $15K |
| Renewal fee | $0 |
| Inventory (initial) | $300 – $500 |
| Total fee load | 2.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
North Central Insulation 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 North Central Insulation unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
76%
Above the 30–60% band. Verify revenue is per-unit average
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: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 2.5% — below the Home Services average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +16.7% over 3 years (0 opened, 0 closed).
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 North Central Insulation Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Net growth (3-yr)
- +16.7%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
North Central Insulation presents elevated risk due to missing financial disclosures, micro-franchise scale, unknown growth metrics, and franchisor going-concern questions.
Litigation (Item 3)
No litigation disclosed in Item 3.
Largest disclosed settlement: $40,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 35 / 100 verdict
- 01MEDNo average revenue or net income disclosed in FDD (Item 19 missing or incomplete) — impossible to validate ROI claims
- 02MEDExtremely small franchise system with only 7 units — high concentration risk and limited peer support network
- 03MINORUnknown unit growth trajectory — no disclosure of openings/closures suggests stagnation or contraction
- 04HIGHGoing Concern status is False — indicates potential financial instability at franchisor level
- 05MINORRoyalty structure heavily favors franchisor — $800/month floor means even low-revenue locations subsidize system
- 06MINORHigh initial investment ($87,450–$170,000) relative to system size and lack of performance data
- 07MINOR5-year term is relatively short for insulation contracting business with slow customer acquisition
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 2.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 1,000,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Richland County, Ohio |
| Jury trial waiver | No |
| Governing law | OH |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 115 hrs
- Training location
- Corporate headquarters, Bellville, Ohio
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
North Central Insulation · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a North Central Insulation franchise?
The total investment to open a North Central Insulation franchise ranges from $87K – $170K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do North Central Insulation franchise owners earn?
North Central Insulation 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 North Central Insulation 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 North Central Insulation FDD and qualifies whose outlets they describe.
What is North Central Insulation's franchise failure rate?
SBA 7(a) loan charge-off data is not available for North Central Insulation (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 North Central Insulation franchise locations are there?
As of their most recent FDD filing, North Central Insulation has 7 total units in the United States, including 0 franchised units and 7 company-owned units.
Is North Central Insulation a good franchise to buy?
FranchiseVerdict rates North Central Insulation as a D-grade franchise with a verdict score of 35 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 North Central Insulation, 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.