Roto-Rooter Franchise Cost, Revenue & Review 2026
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. 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $104K – $274K
- 38th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 448
- 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 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 $104K – $274K including a $25K franchise fee.
- RETURNSItem 19 states the franchisor makes no representations about franchisee future financial performance or past financial performance of company-owned or franchised outlets; no financial performance representation is provided.
- RISKVerdict A (Strongest tier), verdict score 69/100 (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).
- 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
- Roto-Rooter Corporation
- Parent company
- Roto-Rooter Group, Inc.
- Ultimate parent
- Chemed Corporation
- 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
- $933.4M
- vs $949.4M 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 40% below 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 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 Roto-Rooter unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
37%
Within 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: 2024 FDD
Financial Performance
Item 19 states the franchisor makes no representations about franchisee future financial performance or past financial performance of company-owned or franchised outlets; no financial performance representation is provided.
vs Cleaning & Maintenance averages
How Roto-Rooter Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 448
- Opened
- 0
- Last reporting year
- Closed
- 0
- 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
- 115
- Corporate units in the system
- % franchised
- 74%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 6
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 2
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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%
- 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.
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.
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)
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)
ⓘ 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 69 / 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 |
| 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
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 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 448 total units in the United States, including 333 franchised units and 115 company-owned units.
Is Roto-Rooter a good franchise to buy?
FranchiseVerdict rates Roto-Rooter as a A-grade franchise with a verdict score of 69 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
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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.