TEGG Service Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
TEGG Service, from ABM, is a commercial electrical maintenance franchise providing preventive inspection, testing, and servicing of electrical systems for facilities. Franchisees run the operations, managing certified technicians and recurring contracts.
FranchiseVerdict summary · 2026
A TEGG Service franchise requires a total initial investment of $96K – $225K, including a $65K – $75K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). 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
- $96K – $225K
- 31st pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 47
- 45th 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 $96K – $225K including a $65K franchise fee.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 74/100 (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
- ABM Franchising Group, LLC
- Parent company
- ABM Industries Incorporated
- Predecessor
- Linc Franchises, LLC / Linc Network, LLC / TEGG Corporation
- Prior franchisor entity
- CEO title
- Senior Vice President, Franchising
- Bruce Phibbs
- Incorporated in
- Delaware
- HQ
- 501 Technology Drive, Suite 3000, Canonsburg, Pennsylvania 15317
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $7.8B
- vs $8.1B prior year
Overview
About
- CEO
- Bruce Phibbs
- Headquarters
- PA
- Founded
- 1993
- FDD year
- 2024
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost runs 29% below the typical home services franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $0 | $0 |
| Equipment, build-out, other | $31K | $160K |
| Total initial investment | $96K | $225K |
Source: TEGG Service 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
- $96K – $225K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $0
- Top 40% of category vs category
- Franchise fee
- $65K – $75K
- Bottom third — review vs category
- Royalty
- Between 2.5% and 4.5% of Gross Revenues
- Ad fund
- -n/d
- Total fee load
- 2.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $75 |
| Training fee | $800 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 2.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
TEGG Service 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 TEGG Service unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
47%
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
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
System expanding at 14.6% CAGR over 3 years across 47 units — operators are staying and new ones are joining.
Multi-unit rate
Only 8% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 TEGG Service Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 47
- Opened
- 11
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 8.3%
- Net growth (3-yr)
- +14.6%
- Net unit change over 3 years
- 3-yr CAGR
- +14.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 4.3%
- Franchisor-initiated terminations
- Ceased ops
- 4.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $500K
- Median loan
- $500K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Established franchisor (since 1993) with 47 units, positive net growth of 14.6% and negligible turnover (4.3%). No litigation, bankruptcy, or going-concern. Financials are parent-level (net worth $1.8B, net income $251.3M) so brand-level equity isn't disclosed, but operations are stable.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG 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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 74 / 100 verdict
- 01HIGHNo litigation, bankruptcy, or going-concern
- 02MINORStrong parent financials ($1.8B net worth, $251.3M net income) — parent-level, not penalized
- 03MINORNet growth +14.6%, turnover 4.3%
- 04MINORAudited, long operating history since 1993
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 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 6 years |
|---|---|
| Renewal term | 6 years |
| Allowed renewalsℹ | 1 |
| Territory type | County/Street Boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 117 hrs
- On-the-job training
- 64 hrs
- Training location
- Pittsburgh, PA facility
- Ongoing training
- Required
- Field support
- 8 hrs/yr
- On-site visits per year
- POS system
- TEGGPro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TEGGPro
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TEGG Service · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TEGG Service franchise?
The total investment to open a TEGG Service franchise ranges from $96K – $225K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TEGG Service franchise owners earn?
TEGG Service 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 TEGG Service 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 TEGG Service FDD and qualifies whose outlets they describe.
What is TEGG Service's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TEGG Service (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 TEGG Service franchise locations are there?
As of their most recent FDD filing, TEGG Service has 47 total units in the United States, including 47 franchised units and 0 company-owned units. 11 new units were opened in the latest reporting year.
Is TEGG Service a good franchise to buy?
FranchiseVerdict rates TEGG Service as a A-grade franchise with a verdict score of 74 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 TEGG Service, 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.