Roto-Rooter Franchise Cost, Revenue & Review 2026
- Investment
- $104K – $274K
- Disclosed sales
- not disclosed
- SBA charge-off
- 6.1%
- on 61 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
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
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.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| 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
| Fee | Amount |
|---|---|
| Transfer fee | $1K |
| Renewal fee | $0 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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?
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, 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.
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.
vs Cleaning & Maintenance medians
How Roto-Rooter Compares
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?
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
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.
- 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
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.
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
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Falcon National Bank | 5 | $1.5M | 0.0% |
| 2 | Wells Fargo Bank National Association | 2 | $779K | 0.0% |
| 3 | Glacier Bank | 2 | $689K | 0.0% |
| 4 | Nicolet National Bank | 2 | $608K | N/A |
| 5 | GNBank, National Association | 1 | $289K | N/A |
| 6 | SouthState Bank, National Association | 1 | $3.1M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 3 | 0 | 0.0% |
| COColorado | 2 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | 0.0% |
| MTMontana | 2 | 0 | 0.0% |
| WIWisconsin | 2 | 0 | -- |
| KSKansas | 1 | 0 | -- |
| NDNorth Dakota | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
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.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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.
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)
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
- 01MINORNo franchise-related litigation
- 02MINORNet worth $1.1B, net income $272.5M
- 03MINOREstablished since 1936, 458 units
- 04MINORLow 1.76% turnover
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | No |
| Governing law | Iowa |
| Litigation count | 1 |
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
Item 20 · call current owners
Franchisee Contacts
182 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 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.
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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.