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Roto-Rooter Franchise Cost, Revenue & Review 2026

Cleaning & MaintenanceIowaFranchising since 1936
BAbove averageAbove average68/100Editorial grade from public filings; not investment advice.
Investment
$104K – $274K
Disclosed sales
not disclosed
SBA charge-off
6.1%
on 61 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02187Data QualityStandard71%FDD 2024 · 2yr old
Owner-operator requiredYes: Exclusive territory

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

Roto-Rooter is a plumbing and drain-service franchise providing sewer and drain cleaning, pipe repair, and water restoration. Franchisees run a dispatch-and-technician operation serving residential and commercial customers in an exclusive territory.

FranchiseVerdict summary · 2026

A Roto-Rooter franchise requires a total initial investment of $104K – $274K, including a $25K – $75K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 6.1% charge-off rate across 61 loans[1]. FranchiseVerdict grade: B (Above 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: high - issued more than two years ago

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 scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Investment
$104K – $274K
38th pct Cleaning & Ma…
Avg gross sales
N/A
Royalty
Set by a formula
Units
458
83rd pct Cleaning & Ma…
SBA charge-off
6.1%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Cleaning & Maintenance · color = vs category peers

Total Investment
$104K – $274K
Median $169K
above median ↑, worse than category
Franchise Fee
$25K – $75K
Median $47K
near median
Liquid Capital Req'd
$12K – $16K
Median $30K
below median ↓, better than category
Avg Revenue
Not disclosed
Franchisor makes none
Royalty Rate
Not extracted
Median 7.0%
Ongoing Fees
Not extracted
Median 8.3%
SBA Charge-Off Rate
6.1%
61 loans · Median 9.8%
below median ↓, better than category
System Size
458 units
Median 51 units
above median ↑, better than category
Turnover Rate
1.8%
Median 3.4%
below median ↓, better than category
Territory
Exclusive
No other outlet of the brand may open inside it
Owner-Operator
Required
You must run it yourself
Litigation
1 case
Some history

Green = favorable by >10% vs Cleaning & Maintenance 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 $104K – $274K including a $25K franchise fee.
  • RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
  • RISKVerdict B (Above average), verdict score 68/100 (higher is better). SBA loan charge-off rate of 6.1% across 61 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHNegative: net -7 franchised outlets in the latest year (0 opened, 8 closed) (Item 20).
  • DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Roto-Rooter Corporation
Parent company
Roto-Rooter Group, Inc.
FDD Item 1, page 12 of the 2024 FDD
Ultimate parent
Chemed Corporation
FDD Item 1, page 12 of the 2024 FDD
Predecessor
Roto-Rooter Corporation
Prior franchisor entity
CEO title
Chief Executive Officer, Roto-Rooter Group, Inc.
Spencer S. Lee
Incorporated in
Iowa
HQ
300 Ashworth Road, West Des Moines, Iowa 50265
Auditor
PricewaterhouseCoopers LLP
Audited financials
Franchisor revenue
$2.3B
vs $2.1B prior year

Overview

About

CEO
Spencer S. Lee
Headquarters
Iowa
Founded
1935
FDD year
2024
States available
45

Can you afford it, and what does the money buy?

Entry cost runs 12% above the typical cleaning & maintenance franchise.

Total investment (Item 7)$104K – $274KNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Franchise fee$25,000Verified — printed on page 17 of the 2024 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
RoyaltySet by a formula
Ad fundNot extracted
Working capital$12K – $16K

Source: FDD 2024 · Items 5–7

FDD Item 7 · 2024 filing

Initial investment breakdown

Roto-Rooter: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$25K$25K
Working capital (3–6 mo)$12K$16K
Equipment, build-out, other$67K$233K
Total initial investment$104K$274K

Source: Roto-Rooter 2024 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
$104K – $274K
Top 40% of category vs category
Liquid capital req'd
$12K – $16K
Top 40% of category vs category
Franchise fee
$25K – $75K
Top 40% of category vs category
Royalty
Monthly Franchise Fee ranging from $280 to $36,000+ per m…
Ad fund
Franchisor spends at least 15% of aggregate monthly franc…

Ongoing fees · Item 6

Roto-Rooter: Item 6 recurring fees
FeeAmount
Transfer fee$1K
Renewal fee$0
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

Roto-Rooter makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. 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 Roto-Rooter unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundnot set
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $104K–$274K (midpoint used)
FDD reports $12K–$16K

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, royalty rate, ad fund rate, 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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$203K
Payback
—
Single-unit 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 point.

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: 2024 FDD

Financial Performance

No financial performance representation

This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.

Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Showing the headline figures — all 104 extracted fields are in the Full FDD Report · $19 →

vs Cleaning & Maintenance medians

How Roto-Rooter Compares

Metric
Roto-Rooter
Category median
vs median
Investment
$189K
$169Kmiddle half $115K–$269K · n=170
Above median, worse than category
Revenue
N/A
$538Kmiddle half $349K–$1.1M · n=59
N/A
Unit Count
458
51middle half 12–108 · n=169
Above median, better than category

Category median of published Cleaning & Maintenance 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?

Total units458Cited, not corroborated — printed on page 41 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
Turnover rate1.8% (favorable vs category)

Source: FDD 2024 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
458
Opened
0
Last reporting year
Closed
8
Terminated
3
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
1.8%
Company-owned
117
Corporate units in the system
% franchised
74%
vs corporate-owned

Last fiscal year · Item 20 exits and transfers

Terminated
3
Not renewed
0
Transferred
6
Reacquired
1
Franchisor bought back
Signed, not yet open
0
0.00 per open outlet · Item 20 Table 5
Projected new
0
Franchisor's next-year forecast
2021
354
Franchised units
2022
348-6
Franchised units
2023
341-7
Franchised units

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

Item 12 · 45 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

45

states with franchisees (per FDD Item 12)

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

A
SBA Lending Health
Excellent SBA lending record · 6.1% charge-off
Total loans
61
Loan volume
$17.5M
Median loan
$100K
50th percentile
Charge-off rate
6.1%
on 61 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)
94.1%
5-yr charge-off
0.0%
Loans approved 2021+
Active lenders
32
Defaults
3
Typical loan rate
5.7%
avg rate to borrowers
Franchised industry avg
20.0%
brand beats franchise avg ↓
Jobs supported
177
2.6 per loan
Lender concentration
38%
top lender's share

Borrower mix: 22% went to startups / new businesses, 78% to established operators

Franchise vs independent — in plumbing, heating, and air-conditioning contract, franchised businesses charge off at 20.0% vs 14.5% for independents — franchising is associated with 38% higher SBA default risk in this category.

Top lenders financing Roto-Rooter franchisees

Falcon National Bank5 loans0.0%
Wells Fargo Bank National Association2 loans0.0%
Glacier Bank2 loans0.0%

Showing 3 of 32 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.

Total loans
1
Loan volume
$865K
Charge-off rate
N/A
Jobs created
6

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Roto-Rooter from SBA 7(a) FOIA data.

Principal loss rate
0.0%
Avg SBA guarantee
72%
Avg interest rate
5.67%
Lender concentration
38.5%
Job velocity
2.6 per $100K
NAICS benchmark
13.6%
NAICS 238220
Jobs supported
177

Top SBA lendersTop lender holds 38% of loans

#LenderLoansVolumeDefault %
1Falcon National Bank5$1.5M0.0%
2Wells Fargo Bank National Association2$779K0.0%
3Glacier Bank2$689K0.0%
4Nicolet National Bank2$608KN/A
5GNBank, National Association1$289KN/A
6SouthState Bank, National Association1$3.1MN/A

Geographic failure vector

StateLoansDefaultsRate
MNMinnesota300.0%
COColorado200.0%
GAGeorgia200.0%
MTMontana200.0%
WIWisconsin20--
KSKansas10--
NDNorth Dakota100.0%

SBA 7(a) lending trend

2015
2
2016
2
2020
3
2021
3
2022
3

Borrower profile

Existing (2+ yr)5 (56%)
Ownership change2 (22%)
Startup2 (22%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 6.1% — 62% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off6.1% · 61 loans
Verdict score68/100 (higher is better)
Litigation1 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average68Verdict score 68/100

Established franchisor (since 1936) with no litigation required in Item 3 (only an unrelated sister-subsidiary Medicare audit noted) and very strong financials: net worth $1.1B and net income $272.5M. Audited, 458 units. Only minor note is no Item 19, but overall profile is clean.

High confidence±6 pts
6274

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Disclosed matter concerns Chemed Corporation's affiliate VITAS Healthcare Corporation (a hospice provider), not Roto-Rooter directly: an OIG Medicare overpayment demand ($50.3 million), subsequently resolved substantially in VITAS's favor by an ALJ ruling, plus pending class action lawsuits against VITAS arising from a cybersecurity data breach. No other litigation required to be disclosed.

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · PricewaterhouseCoopers LLP

Franchisor revenue (Item 21)

Yr 1: $2264.4MYr 2: $2135.0M

Franchisor entity revenue (not unit-level)

Item 21 attaches only guarantor Chemed Corporation and Subsidiary Companies' audited consolidated statements (Exhibit 6, in thousands): service revenues and sales $2,264,417K FY2023, $2,134,963K FY2022 (p137). The Roto-Rooter segment (company-owned branches plus franchising; unaudited segment note, p151) reported net revenue $949,352K FY2023 and $933,399K FY2022. The franchisor entity, Roto-Rooter Corporation, states its own FY2023 total revenue was $48.1 million (Item 8, p26) and files no statements of its own.

ⓘ 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: No
  • Restricted to system-approved products: No
  • Can negotiate own supplier terms: Yes

Score breakdown · what drove the 68 / 100 verdict

  1. 01MINORNo franchise-related litigation
  2. 02MINORNet worth $1.1B, net income $272.5M
  3. 03MINOREstablished since 1936, 458 units
  4. 04MINORLow 1.76% turnover

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 104 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

What are you signing up for?

Initial term10 yrs
Renewal term10 yrs
TerritoryExclusive (favorable vs category)
Initial trainingNot extracted

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term10 years
Territory typeExclusive territory
Protected territoryYes
Exclusive territoryℹYes
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Right of first refusalℹNo
Transfer requires consentYes
Termination notice60 days
Mandatory arbitrationNo
Governing lawIowa
Litigation count1
View Item 3 litigation summary

Disclosed matter concerns Chemed Corporation's affiliate VITAS Healthcare Corporation (a hospice provider), not Roto-Rooter directly: an OIG Medicare overpayment demand ($50.3 million), subsequently resolved substantially in VITAS's favor by an ALJ ruling, plus pending class action lawsuits against VITAS arising from a cybersecurity data breach. No other litigation required to be disclosed.

Items 10, 11

Training & Operations

Classroom training
0 hrs
On-the-job training
0 hrs
Ongoing training
Optional
Site selection
franchisee
Franchisor financing
Not offered
Item 10

Items 5 & 11

Franchisor Support

✗Site selection assistance
✗Grand opening support
✗Lease negotiation help

Item 20 · call current owners

Franchisee Contacts

182 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 182 contacts · $49
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Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Roto-Rooter franchise?

The total investment to open a Roto-Rooter franchise ranges from $104K – $274K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Roto-Rooter franchise owners earn?

Roto-Rooter makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns Roto-Rooter?

Roto-Rooter is franchised by Roto-Rooter Corporation. Its parent company is Roto-Rooter Group, Inc.. The ultimate parent named in the FDD is Chemed Corporation. Source: FDD Item 1, 2024 filing.

What is Item 19 in the Roto-Rooter 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 Roto-Rooter FDD and qualifies whose outlets they describe.

What is Roto-Rooter's franchise failure rate?

Based on SBA 7(a) loan data, Roto-Rooter has a charge-off rate of 6.1% across 61 loans, meaning 6.1% 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 Roto-Rooter franchise locations are there?

As of their most recent FDD filing, Roto-Rooter has 458 total units in the United States, including 341 franchised units and 117 company-owned units.

Is Roto-Rooter a good franchise to buy?

FranchiseVerdict rates Roto-Rooter as a B-grade franchise with a verdict score of 68 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.