Roto-RooterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Roto-Rooter franchise requires a total initial investment of $104K – $274K, including a $25K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.1% charge-off rate across 61 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $104K – $274K
- 36th pct Cleaning & Ma…
- Avg gross sales
- N/A
- 56th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 458
- 79th pct Cleaning & Ma…
- SBA default
- 6.1%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1936. Systems this mature have refined operations and brand recognition.
Franchised units fell from 354 to 341 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $104K – $274K including a $25K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 60/100. 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, 2010–2024).
- No 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
- Legal entity
- Roto-Rooter Corporation
- Parent company
- Chemed Corporation
- Incorporated in
- IA
- HQ
- 300 Ashworth Road, West Des Moines, Iowa 50265
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $933.4M
- vs $949.4M prior year
Overview
About
Franchisees operate drain cleaning, plumbing repair, and water restoration services under the Roto-Rooter brand. Day-to-day operations include managing service technicians, scheduling customer appointments, responding to emergency calls, maintaining equipment/vehicles, and generating revenue through residential and commercial plumbing services.
- CEO
- Thad Reinhard
- Headquarters
- IA
- Founded
- 1935
- FDD year
- 2024
- States available
- 45
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $10K | $12K |
| Equipment, build-out, other | $69K | $237K |
| 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
- Better than avg vs category
- Liquid capital req'd
- $10K – $12K
- Better than avg vs category
- Franchise fee
- $25K – $75K
- Better than avg vs category
- Royalty
- From $530 to $36,000+ per month based on population formula
- Ad fund
- Minimum local spend of 10.58¢ per person in 2024 (increas…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $8K |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Cleaning & Maintenance averages
How Roto-Rooter Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 458
- Opened
- 1
- Last reporting year
- Closed
- 8
- Turnover rate
- 1.7%
- Company-owned
- 117
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- -2.0%
- Net unit change last year
- 3-yr CAGR
- -3.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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
- 61
- Loan volume
- $17.5M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 6.1%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Roto-Rooter's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Roto-Rooter presents moderate-to-cautious risk due to declining franchise unit count, undisclosed financial performance data, and significant parent company litigation that could affect franchisee support and brand reputation.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 60 / 100 rating
- 01MINORDeclining unit count (-2.0% YoY) suggests system contraction and potential market saturation
- 02HIGHParent company litigation: $140M OIG audit finding with $50.3M demand letter currently under appeal creates uncertainty about corporate stability and potential impact on franchisees
- 03MEDNo disclosed average revenue or net income (Item 19) prevents validation of profit claims and ROI projections
- 04MINORRoyalty structure scaling up to $36,000+/month represents significant ongoing cost burden, especially for smaller territories
- 05MINORHigh initial investment range ($103,980-$273,700) combined with declining unit metrics increases break-even risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic area (city or county) |
| Protected territory | Yes |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Iowa |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
72 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Roto-Rooter · FDD (2024) PDF
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 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 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 354 franchised units and 117 company-owned units. 1 new units were opened in the latest reporting year.
Is Roto-Rooter a good franchise to buy?
FranchiseVerdict rates Roto-Rooter as a B-grade franchise with a risk score of 60 out of 100, 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.
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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.