TEGG Service Franchise Cost, Revenue & Review 2026
- Investment
- $96K – $225K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
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 and an ongoing 2.5% royalty[2]. 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. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
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 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $96K – $225K
- 31st pct Home Services
- Avg gross sales
- N/A
- Royalty
- 2.5%
- 1st pct Home Services
- Units
- 47
- 44th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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 $96K – $225K including a $65K franchise fee, 2.5% ongoing royalty.
- 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 A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHPositive: net +9 franchised outlets in the latest year (11 opened, 2 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
- ABM Franchising Group, LLC
- Parent company
- ABM Industries Incorporated
- FDD Item 1, page 7 of the 2024 FDD
- 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
- $8.1B
- vs $7.8B prior year
Same owner · FDD Item 1, page 7
1 other brand on this site name ABM Industries Incorporated as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 is about typical for a home services franchise (near the category median).
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
- 2.5%
- typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 2.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.5% of gross sales |
| 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 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 TEGG Service 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, 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.
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 median of 8.0%.
Disclosure
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.
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 medians
How TEGG Service Compares
Category median of published Home Services 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
- 47
- Opened
- 11
- Last reporting year
- Closed
- 2
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 1
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
42 current owners across 25 states.
- NY 7
- CO 3
- PA 3
- AZ 2
- CA 2
- KY 2
- MO 2
- NC 2
- TX 2
- WA 2
- AK 1
- AL 1
- +13 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- 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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
Item 21 financials are the audited CONSOLIDATED statements of the parent/guarantor ABM Industries Incorporated (fiscal year ended October 31, 2023), not the franchisor ABM Franchising Group, LLC. The FDD states the franchisor's separate statements are not included; ABM Industries unconditionally guarantees the franchisor's obligations (Guarantee of Performance, Exhibit J.3). All figures reported in millions and scaled to whole dollars (x1,000,000). Balance sheet reconciles: assets 4,933.7M = liabilities 3,133.8M + stockholders' equity 1,799.9M. Revenues 8,096.4M (2023) / 7,806.6M (2022); net income 251.3M (2023). Audited by KPMG LLP, New York, dated December 18, 2023.
ⓘ 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 71 / 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | County/Street Boundaries |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Pittsburgh, Pennsylvania |
| 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
- Site selection
- franchisee (typically existing facility), franchisor approves location
- Franchisor financing
- Not offered
- Item 10
- 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
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 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 TEGG Service?
TEGG Service is franchised by ABM Franchising Group, LLC. Its parent company is ABM Industries Incorporated. Source: FDD Item 1, 2024 filing.
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 71 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.