FranchiseVerdict
The Brothers that just do Gutters logo
FV-02606·STRONGExcellent100

The Brothers that just do Gutters

Formerly known as Brothers Parsons

Cleaning - Commercial & JanitorialFranchising since 2014Website
Investment
$144K – $511K
71st pct Commercial & …
Avg revenue
$1.2M
48th pct Commercial & …
Royalty
Units
101
71st pct Commercial & …
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $144K – $511K including a $50K franchise fee.
  • Average unit revenue of $1.2M/year (median $1.1M). Estimated payback in 1.0 years.
  • Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 148 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Brothers Parsons Franchising LLC
Parent company
EHC Holding Company, LLC
Incorporated in
Arizona
HQ
8100 E. Indian School Road, Suite 201, Scottsdale, Arizona 85251
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$7.2M
vs $25.7M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one The Brothers that just do Gutters unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,212,481
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $144K–$511K
Working capital
$
FDD reports $45K–$60K

Unlevered ROIC · per unit

35%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$133K
EBITDA margin
11.0%
Total invested
$380K
Payback
34 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 The Brothers that just do Gutters units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$970K

on $4.8M purchase

Total debt

$3.9M

SBA $2.4M + senior + seller note

Overview

About

Franchisees operate gutter cleaning, installation, and repair services for residential and light commercial properties. Day-to-day operations involve managing crews, scheduling customer appointments, performing on-site gutter work, and handling customer service. The business is weather-dependent and seasonal, with peak demand in spring and fall.

CEO
Ryan Parsons
Founded
1999
FDD year
2025
States available
35

Item 7 · what it costs

The Vitals

Total investment
$144K – $511K
All-in to open one unit
Liquid capital
$45K – $60K
Cash you must have on hand
Franchise fee
$50K
Royalty
Greater of 6% of Gross Sales or Minimum Weekly Royalty Fe…
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
1.0 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.2M
Per unit, per year
Median gross sales
$1.1M
Item 19 type
Gross Sales and Disclosed Expenses
Sample size
66 units
vs category median 32 · large
Range (low → high)
$326K$3.0M
Cohort dispersion
Transparency
10 / 5
vs category median 4 / 5 · above
Revenue rank48th
vs Cleaning - Commercial & Janitorial peers
Investment cost rank71th
Lower investment ranks lower (better)
Royalty rate rank66th
Lower royalty = lower percentile (better)
Unit count rank71th
vs Cleaning - Commercial & Janitorial peers
Risk score rank35th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
101
Opened
9
Last reporting year
Closed
16
Turnover rate
15.8%
Company-owned
1
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
-6.5%
Net unit change last year
3-yr CAGR
+9.9%
Compounded over last 3 years
2023
100-7
Franchised units
2024
107
Franchised units
2025
91
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 11 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 11 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
148
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

51
Risk · 0-100
STRONG51 / 100

Declining franchise system with litigation history, undisclosed financial performance, and royalty structure misaligned with seasonal revenue volatility creates elevated risk despite moderate unit count and protected territories.

Score breakdown · what drove the 51 / 100 rating

  1. 01MINORUnit count declining 6.5% YoY (101 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
  2. 02HIGHLitigation history across multiple affiliated brands (Executive Home Care, Assisted Living Locators) indicates pattern of legal disputes around non-compete and trademark enforcement—raises questions about franchisor governance
  3. 03MINOR2016 Virginia unregistered sales settlement suggests past compliance issues with state regulations
  4. 04MINORRoyalty structure with minimum weekly fee requirement creates fixed costs regardless of revenue—problematic for seasonal gutter business with weather-dependent demand
  5. 05MEDNo Item 19 (financial performance representations) disclosed—cannot independently verify claimed $1.2M avg revenue or $326K net income figures
  6. 06MINORRelatively high initial investment range ($143K–$510K) combined with declining unit growth increases franchisee risk

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Household count
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
5
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Arizona

Item 11

Training & Operations

Classroom training
33 hrs
On-the-job training
42 hrs
POS system
Service Bridge
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

98 numbers

Locked
(208) 215-••••
ID
(312) 533-••••
NY
(517) 881-••••
NC

One-time purchase · CSV download · Validation questions included

FDD download

The Brothers that just do Gutters · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above